Airport Experience® News - Post-Conference Issue 2024

FRICKE: Before an RFP comes out, airports should sit down with us. It has to makes sense. SVAGDIS: I’ve seen in multiple bids – speaking specifically for food and beverage– with too many restaurants and too many lounges. They’re our direct competitors. It’s just taking business away from us. which leads to overdeveloped programs. We all know how much food and beverage [an airport] should have. How much retail – we know because we do retail in other countries. We know what food and beverage should sit next to what retail. [Airports should] allow us to give feedback on their RFPs. Get all the feedback… and I guarantee [the advice from each company] will be pretty much the same. What airports will get is competitive rents. It’s a crazy ask, but that would be fantastic. BERNAL: To that point, the thing I’d like to see change is the perception – that the airports have and the consultants have – that we’re making a ton of money. I think there’s a lack of trust. It’s [important to] get in front of the RFP and talk about it. It’s going to be the same for all of us – [sharing] what the real numbers look like. We’re all going to innovate. We’re all going to try something new. We’re going to create experiences. We’re going to do that because that’s who we are as businesses and leaders, but we can’t do those things sometimes because the model causes the problem today. PARADIES: I’d like to see more data-based decision making. Let’s use data to make decisions, whether it be pricing, whether it be store hours, whether it be what you sell… MONTES: Most of you are members of ARRA. How have the organization’s goals shifted since its launch four years ago? BERNAL: I’ll tell you what was accomplished. The only reason we have CRRSAA (Coronavirus Response and Relief Supplemental Appropriation Act) money today is because of ARRA. That’s $800 million – it’s a big deal. Then there was $200 million in reimbursements to some of

“The thing I’d like to see change is the perception – that the airports have and the consultants have – that we’re making a ton of money. ” – Carlos Bernal, Areas USA the concessionaires and our partners. The focus now is all the things we’re talking about today. We need to get behind that, and we need to tell our story. For me, that’s the single most important component of the work that we need to get done, because we can’t do it individually as a company. JOHNSON: The subjects may change, whether it be on capital or term or rent or pricing or logistics. It’s ARRA’s job to inform and educate the airports. We can’t do it, [airports] don’t believe us independently, they think that we’re trying to game the system. We need an impartial third voice to be able to continue the discussion.

Above: Gregg Paradies, president and CEO of Paradies Lagardère, wants more data-based decision making from airports regarding things like store hours, pricing and product.

Right: Delaware North’s Scott Socha said the cost of accessing capital has increased significantly, forcing concessionaires to be more selective in how and which RFPs make sense for their businesses.

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AX NEWS APRIL/MAY 2024