Airport Experience® News - Post-Conference Issue 2026

Rising Labor Costs Another high-profile AXC panel tackled the issue of rising labor costs for airport concessions. Wages have risen dramatically and overall labor costs have climbed sharply across the airport industry in recent years, and the pressure is not letting up. The panel brought together airport operators and concessionaires to discuss how the industry absorbs those costs without sacrificing the guest experience. Nicholas Crews, CEO and managing partner of Crews Enterprises , moderated the discussion. He opened with a presentation on Los Angeles ’ recently passed Olympic Wage Ordinance, which raises the minimum wage for hotel and airport workers to $30 per hour by 2028. His data suggested labor costs at Los Angeles International Airport (LAX) will increase 42 percent over the next three years, even as traffic at the airport remains 15 to 20 percent below 2019 levels. “We want to pay everyone a living wage, and it also has to meet market realities,” Crews said. When Crews asked panelists about passing fees onto customers, Roxann Favors, assistant aviation director and chief revenue officer of Phoenix Sky Harbor International Airport (PHX), had a clear answer. “We hear about it from our passengers. We have done everything we can to help offset those charges,” she said. “I’m always mindful of the passenger who happens to never be in the room when these decisions are made.” Benedict Ma, director of passenger retail experience at Vancouver Airport Authority (YVR), said creativity and data are the path forward. “We all know cost is increasing. A question commonly posed to my team is, how do we generate more revenue on behalf of our partners?” he said. “If we have the right product, that will solve a lot of what we’re trying to solve today.” Ma pointed to the implementation Below: Roxann Favors of Phoenix Sky Harbor International Airport (center right) makes a point while fellow panelists listen. Other panelists were Carlos Bernal of Areas USA (right) and Benedict Ma of Vancouver International Airport (left), as well as moderator Crews. Left: Nicholas Crews of Crews Enterprises kicked off the panel on wages by sharing details on the mandated wage hikes in the works at Los Angeles International Airport.

they are managing through it. Courtney Thornton, president and CEO of NextGate Consulting LLC , moderated the session. The supply chain pressure is tangible, according to Rob Hale, senior director at Vantage Group . “Stuff that used to cross the border just doesn’t cross it as fast anymore.” Christopher Asaro, president of Holt Construction , identified the categories absorbing the most pressure: ornamental metals, steel, mechanical equipment, kitchen equipment and lumber, roughly 70 percent of which comes from Canada. “In a lump sum methodology, we are putting exclusions in our proposals and bids,” he said. His advice for controlling costs was to bring trade partners in early. Michele Larimer, director of projects and partner at Silhouette Design Architecture , said the design side has had to adjust. “We now realize we need to have a plan B for anything we design,” she said. “Tariffs mean supply chain disruption, and it’ll take a while for things to stabilize.” Roderick McOwan, chief development officer for WHSmith North America , pointed to the cost of capital as the industry’s single biggest challenge and called out inflexible airport processes as making it worse. “We’re living in an uncertain political environment. We need to be flexible, we need to be able to pivot,” he said. “The challenge is that many of the airports we live and work in are actually inflexible.” He also pushed back on blanket Federal Aviation Administration

restrictions on contract length. “I don’t think the airport should be fearful of longer term deals,” he said. “Not everything can be nor should it be the Taj Mahal.” On delivery methods, Hale said the construction manager at risk (CMAR) model is gaining ground. “It has to be a more collaborative environment versus punitive. It will be faster and more productive delivery for everybody.” Standardization, he added, has produced real savings without sacrificing quality. The first sign a project is headed over budget, Larimer said, is almost always the same thing. “Lack of effective coordination.” McOwan pointed to permitting delays. “Time is money,” he said. “Approval delays in permits are the first signs of blowing up the budget.” Thornton left the room with a clear message. “The panelists are not waiting for certainty. They are building through it,” she said. “Each decision we make today will define a more sustainable model for tomorrow.”

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AX NEWS APRIL/MAY 2026