Airport Experience® News - Retail & Amenities Issue 2023

RETAIL & AMENITIES ISSUE 2023 / V21 N249

ADDSEXCITEMENT, VARIETY

POST-SECURITY ACCESS WIDENS FOR NON-TRAVELERS

PUSH CONTINUES FOR PRICE POLICY CHANGES

THEMED LOUNGES, UNIQUE OFFERINGS, GAIN TRACTION

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16 Lounge Evolution The next generation of travelers is all about experiences, and global lounge operators are tapping into that desire. Lounges in North America and abroad are beginning to target younger travelers with amenities such as gaming and youth-centric spaces. 22 Pricing Pressures Concessionaires are pushing airports to reconsider their strict pricing policies in light of unprecedented pressures on margins, but most airports are holding firm for now. 28 Pop-Up Popularity Pop-up retail and retail kiosks are nothing new in airports, but the combination of space constraints, high cost of inline store buildouts and the need for novices to dip a toe in the airport waters have prompted several airports to broaden their programs to increase access. 31 Post-Security Welcome A growing number of airports are working with TSA to allow a limited number of visitors to access airport amenities and gates post security. While not a huge boon to revenues yet, the policies build community goodwill and spark interest in airport offerings.

5 Letter From The Editor 6 Data Check

34 Sustainability Snapshot The Greater Toronto Airports Authority has an aggressive sustainability program. AXN’s Sally Kral connected with Toronto International Airport’s Todd Ernst to find out more. 37 Advertising Index 38 Before You Take Off If artificial intelligence is to be believed, airports of the future will bear little resemblance to today’s facilities. Icelandair employed AI to envision what select U.S. airports will look like in 2050, and the results are remarkable.

A new report from Oliver Wyman sheds light on key challenges for airports as they continue their evolution through 2050. 8 Latest Buzz Los Angeles International Airport (LAX) is in a near-constant state of development. AXN takes a look at the latest infrastructure upgrades designed to refresh and expand the airport ahead of the 2028 Olympics. 12 Director’s Chair Atif Saeed was named CEO of Philadelphia International Airport (PHL) on December 1, 2022. After nine months at the helm, Saeed shares his vision and plans for the airport going forward.

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TEAM

Desiree Hanson Executive Vice President Melissa Montes Vice President/Publisher Carol Ward

Editor-in-Chief Nicole Watson Business Development Manager

Andrew Tellijohn Senior Reporter Sally Kral Contributing Writer Sarah Beling Contributing Writer

Barbara McCarter Portfolio Manager Chad Wimmer Senior Editorial Art Director Rae Lynn Cooper Production Manager Amanda Gochee Vice President, Marketing Strategy Paige Heady Senior Marketing Manager Tessa Mullins Marketing Coordinator Tristan Lueck Marketing Coordinator

Airport Experience ® News Is a Division of CLARION Events 6421 Congress Ave., Suite 107 Boca Raton, FL 33487 Phone 561.257.1026 Fax 561.228.0882 To subscribe visit https://airportxnews.com/subscribe/ ISSN: 1948-4445 Russell Wilcox Executive Chairman Lisa Hannant Chief Executive Officer, Clarion Events Greg Topalian President and Chief Executive Officer Clarion Events North America Copyright © 2023 Airport Experience ® News, all rights reserved. Any reproduction of this magazine is strictly forbidden without prior permission from Airport Experience ® News.

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RETAIL AND AMENITIES ISSUE 2023

Most of us can’t begin to fathom the impact that technology and artificial intelligence (AI) will have on our businesses going forward. Think back to where we were at the turn of the century – remember Y2K? – then look at where we are today. Given the pace of change, looking ahead can be daunting. Icelandair, Iceland’s flagship airline, took on the challenge, utilizing an AI image-generating tool to predict what the 10 largest airports in the U.S. could look like by 2050. Check out a few of the results on page 38 and more at https://www.icelandair.com/. In another “look ahead” article on page 8, see what consulting firm Oliver Wyman is predicting about the evolution of airports through 2050. In addition, check out senior writer Andrew Tellijohn’s feature on some of the intriguing new approaches to airport lounges being seen around the world. This Retail and Services issue of AXN also zeroes in on the ongoing battle of pricing at airports. Operators are pushing hard against the street or street-plus pricing policies in place at most major airports in North America, but few airports are budging. This issue also features the latest efforts to entice new operators into airports through lower-risk kiosk or pop-up offerings, and checks in on the status of post-security access for non-ticketed passengers. Finally, many of you will have heard through our website, social media channels and other communications that the AX team is now accepting nominations for the 2024 Airport Experience Awards. Full details can be found on the website: https://www.airportxnews.com.

RETAIL & AMENITIES ISSUE 2023 / V21 N249

ADDSEXCITEMENT, VARIETY

PUSH CONTINUES FOR PRICE POLICY CHANGES

THEMED LOUNGES, UNIQUE OFFERINGS, GAIN TRACTION

POST-SECURITY ACCESS WIDENS FOR NON-TRAVELERS

Enjoy!

Carol Ward Editor-in-Chief

Airport Experience News carol@airportxnews.com

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DATA CHECK

AIRPORT EVOLUTION Oliver Wyman Report Sheds Light On Challenges As Airports Evolve Through 2050

BY C AROL WARD

Megatrend Evolution | A DECADE-BY-DECADE FLIGHT PATH

2030

2040

2050

• Commercialization of Sustainable Aviation Fuel (SAF) • Airport equipment electrification • Sustainable construction, lighting, and cooling • Increased pressure to use rail instead of short-haul commercial flights • Reduced noise pollution • Biometrics and digital identity management • Walk-through, contactless immigration • Paperless or tag-less tracking of baggage • AI and IoT deployed as a core part of airport operations • Additive manufacturing and 3D printing supply chains • Investment in connections to wider public transport networks • An integration between cargo and passenger mobility • Incentives to reduce personal car transit to airports • Recruitment, reskilling, and upskilling of the workforce • Staff capacity constraints, and additionally, a pilot shortage affecting airline’s ability to meet demand • A demographic change in the workforce with four generations working together • Expanded focus on airport experience – comfortable lounges, free Wi-Fi, and diverse options for food and drink • An increase in customized, on-demand passenger services such as virtual queuing and easy access to e-commerce

• SAF scale-up • Introduction of short-haul capable electric aircrafts • Introduction of hydrogen technologies • Sustainable construction, and infrastructure retrofitting • Implementation of free-route airspace • Autonomous vehicles and robotics deployed to support operations airside and landside • Walk-through, contactless security • Improved aircraft noise performance profiles • Use of AI and ML to predict and optimize operational performance • Carbon capture and storage technology • An integration of urban air mobility and vertical take-off and landing vehicles • Development of fully integrated multi-modal hubs for both passenger and cargo transport • Investment in infrastructure to integrate with autonomous vehicles • Use of AI and technology to support the aviation workforce • A smaller workforce, concentrated on customerfacing roles • Expansion of airport cities or “aerotropolises” • Service-orientated experience with fasttracked parking, integrated journey planning and quick security

• Airports becoming energy hubs and energy producers • Net-zero carbon emissions

Achieving Net Zero

• A fully automated, On-the-Move, contactless experience • An internationally recognized digital identity owned by passengers

Technological Innovation

• An integrated flow management system that balances demand and capacity across all modes of transport • A seamless system providing dedicated access to the gate from city centers • Customers will have limited human interactions • Many processes and jobs are fully automated • Zero-queue airport terminals with walk- through or remote processing • Passengers receive customized, real-time, interactive travel communications

Intermodal Connectivity

The Changing Workforce

The Passenger Experience Revolution

he evolution of travel will continue at a heightened pace over the coming decades and

types. Based on those conversations, the authors identified five megatrends that will shape the future of airports. Those trends are achieving net zero, technological innovation, intermodal connectivity, the changing workforce and the passenger experience revolution. Passenger Experience Revolution The report authors foresee an airport experience where every aspect is tailored to the individual traveler. “Going forward, the passenger experience will be customized, on-demand, contactless, and efficient,”

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airports, as the beginning and end points for many journeys, will be drivers of change and will transform in the process, according to a recently released report from Oliver Wyman Forum For The Evolution of Airports Report , Oliver Wyman teamed with Airports Council International - World and the STGC . They identified four airport types – city, global hub connector, cargo champion and leisure gateway – then conducted interviews with 18 CEOs spanning all four

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DATA CHECK

the report noted. “The digitization of airports will enable a tailored end-to end journey through the airport and will create new retail and commercial revenue opportunities.” The prediction suggests that airline passengers will no longer need to travel to the airport with their baggage; instead, baggage services will offer pickup and checking services. Passengers will use personal devices and integrated travel apps to manage every aspect of their journey and consumer experience, from reserving a table at a restaurant to accessing duty free purchases. Airports will offer services to customers at every point of their journey, as well as targeted promotions. Cinemas, swimming pools and virtual reality gaming options are expected to be part of the traveler amenities as part of an expanded lounge offering in most major airports. In addition, the continued expansion of airports into “aerotropolises,” or airport cities, will provide customers with a host of interrelated activities onsite or nearby, the report predicts. The reports suggests an expanded array of commercial activities are likely. “The transformation of passenger processing will drive a significant change in the internal layout of airport terminals, where the future line of demarcation between airside and landside is expected to be very different from today,” it says. “The reduction in check-in counters and security screening queues will provide new opportunities for commercial retail and relaxation spaces in terminals.” Tech and Connectivity The customer experience is expected to be transformed from current processes due to advances in biometrics, artificial intelligence and machine learning, 3D printing and automation. These technologies will enhance efficiency, but the report notes that “our human resources will be mobilized to manage and humanize exceptions. This shift will require airports of the future to fully embrace digitization and innovation across cargo and passenger operations,” it said. Airport design will be impacted as passenger processing points will become more streamlined and individualized, with few if any stopping points. But the report authors warn that sharing data among stakeholders is crucial to the process. “The enormous

The digitization of airports will enable a tailored end-to-end journey throughout the airport and will create new retail and commercial revenue opportunities.

potential of technology will not be realized without alignment and collaboration between regulators and the industry on data sharing. Maximizing the value of new technologies requires airports, regulators, and other members of the travel ecosystem to design and operate according to open architecture that allows seamless data sharing across multiple stakeholders, while maintaining safety and security,” the report said. Airports could also look quite different in the future as they further evolve into intermodal facilities as pressures to curb emissions and streamline travel intensify. “Disaggregated models will also emerge, with specialized terminals aiming to reduce congestion and inefficiencies,” the Evolution of Airports report said. “In the future, passengers could for instance travel through a fully seamless transportation system providing dedicated access to airports from city centers. “The deployment of Urban Air Mobility (UAM) concepts, providing connectivity from city centers to airports, will be fully integrated into the modern multi-modal transportation hub,” the report continued. “These will likely connect onwards to ultrahighspeed rail networks, providing additional inter-regional connectivity options.” Achieving Net Zero These changes are expected to play into global airports’ goal of achieving net zero carbon emissions by 2050. According to the report, across the board, the air transport sector contributes around 2% of total global carbon emissions. The airport sector specifically is responsible for only a small slice of this, accounting for just 2%-5% of total aviation emissions. “Even though the airport sector contributes a relatively low share of global emissions, it is prioritizing achieving net zero because it recognizes its role as a key

enabler in reducing the carbon footprint of the entire aviation system,” the Oliver Wyman report noted. “Facilitating the availability of alternative fuel sources to air operators will become crucial. Increasingly, airports will become energy hubs and energy producers to supplement the resources available on the national grid level and ensure the availability of green energy. “Airports will have to take concerted measures to reduce energy consumption across their ecosystem and utilize negative emissions technologies by either relying on natural processes or employing dedicated technologies such as carbon capture and storage,” the report noted. Workforce Challenges Finally, the report outlined challenges in finding the workforce necessary to facilitate the expected airport transformation. The labor shortages that began in the wake of Covid-19 are persisting and could limit airports’ ability to meet travel demand. Currently, 54% of the 11.3 million people working in the aviation industry globally work in airports, the report noted. Their skills and attributes will need to change to accommodate the shifting industry. “Looking ahead, as AI and other technologies transform airport operations, the workforce’s roles will bifurcate, and required skills will be more specialized: passenger-facing workers will have to upgrade their customer service skills, whilst airport operations staff will need new engineering, digital, cybersecurity, and IT skills,” the report said. Attracting a new generation of workers is already, and will likely continue to be, a top priority for airport executives. The reports suggests the need for “collaboration with academia” to ensure suf ficient numbers of aviation works with future proofed skills.

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LATEST BUZZ

AIRPORT-WIDE UPGRADES LAX Is Renovating Ahead Of Olympics, Other Events

BY SARAH BEL ING

Above: Los Angeles World Airports is readying LAX for an influx of visitors, as the city is hosting major events in the coming years including the 2028 Olympics.

n late August, Los Angeles World Airports and Delta Air Lines cut the ribbon on the $2.3 billionDelta

“Having just celebrated the opening of LAX’s Terminal 3 West Headhouse and already hearing an incredible amount of positive feedback on that aspect of the project, I know we can expect similar praise on the new Terminal 3 and Tom Bradley International Terminal post security connector. This new passageway will significantly enhance the travel experience for millions of international and domestic guests,” said Justin Erbacci, CEO of LAWA.

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Sky Way, a new enclosed passageway that creates a direct post-security connection between the upper floors of Terminal 3 and Tom Bradley International Terminal. The passageway eliminates the need for busing between Terminals 2, 3 and TBIT. Now, ticketed passengers and airport employees can journey from Terminal 1 to Terminal 8, post-security inside the airport.

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L ATES T BUZ Z

technology, LAX and Delta partners focused on making the upgraded facilities and terminal connection as sustainable as possible, says Merritt. “Terminal 3 is designed to help meet LAWA’s sustainability goal to eliminate carbon emissions from its facilities,” she says, adding that the project team was able to recycle 75% of its construction waste and that all of the building’s systems are designed to meet CalGreen tier 1 and LEED Silver standards. The terminals’ eco-f r iendly features al so include low-f low plumbing fixtures that will eventually function from 100% recycled water, regionally-sourced recycled design materials, and a “cool roof” to reduce the heat-island effect and keep air conditioning use low. Noting that LAX now prohibits the sale of single-use plastic water bottles, the new sustainability regulations and intentional design are all part of LAX’s commitment to moving toward a “zero waste” airport, says Merritt. Concessions Upgrades Another boon for passengers are the many recently opened and upcoming concessions in Terminals 2,3, and Tom Bradley International. “Los Angeles is a world-class dining and shopping destination, and we are proud that our airport concessions program

In May of this year, the Delta Sky Way’s West Headhouse and Delta One check-in area began providing another entry point to check in and get to security at Terminal 3. Additionally, guests can take advantage of advanced self-service kiosks in the space, making checking in luggage and printing boarding passes simple and user-friendly. The project, finished ahead of schedule, is part of a more than $30 billion renovation of the entire LAX campus. Terminal 3, a 1.2-million-square-foot, 27-gate complex, debuted in April 2022, featuring a centralized check-in lobby, expanded security checkpoint and baggage claim area, as well as a state-of-the-art Delta Sky Club, one of the largest in Delta’s portfolio. Nine additional new gates, new concessions and spacious seating areas opened to customers in October 2022. Below: In late August, Los Angeles World Airports and Delta Air Lines cut the ribbon on the $2.3 billion Delta Sky Way, a new enclosed passageway that creates a direct post-security connection between the upper floors of Terminal 3 and Tom Bradley International Terminal. LAWA CEO Justin Erbacci spoke at the opening. Beow, Right: Recent upgrades to Terminals 2 & 3, and the opening of the Delta Sky Way, are part of a comprehensive, $30-billion-plus renovation of Los Angeles International Airport.

JessicaMerritt, director of communications for development projects at LAWA, says the upgrades are needed “ support capacity needs as well as make guests’ experiences seamless and efficient.” The renovated facilities will be completed ahead of the 2028 Olympics, which Los Angeles is hosting. Airport officials hope the investments will pay off in supporting the millions of spectators, athletes, and competition officials who will descend on the city in July 2028. “With Los Angeles being formally designated as the Olympics’ 2028 host city in September 2017, many of the projects being realized as a part of our transformation were already in the deliberative phase or approved to move forward,” says Merritt. “Our modernization is also putting billions of dollars into the local economy as we prepare to welcome the world to the 2026 World Cup and 2028 Olympic and Paralympic Games and prepare for the record-breaking passenger numbers we anticipate in the coming years,” adds Erbacci. A full overhaul of the airport’s parking and police facilities, Terminals 1,7, 8 as well as the West Gates at Tom Bradley International Terminal have already been completed, and several upcoming projects are well on their way to the finish line, says Merritt. In addition to the implementation of cutting-edge security and check-in

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Right: Barney’s Beanery and Native are two of the many new concessions recently opened as part of LAX’s Terminals 2 and 3 upgrades.

offers a wide variety of local brands that represent the best of our city and provide guests an authentic LA experience,” says David Jones, deputy executive director of commercial development at LAX. Unibail-Rodamco-Westfield (URW) has invested a collective $200 million into LAX’s culinary offerings and are currently contracted as retail and dining operators through 2034. “Our concessions program also champions inclusivity,” says Jones, “and we are committed to creating opportunities for small, local and minority-owned businesses to serve our guests and be part of our airport.” The developer has worked to open more than 120 total dining and retail spaces with both local favorites and celebrity-backed brands alike — this is LA, after all — including new offerings in Terminal 2 and 3. Those include Jackmont Hospital ity’s Chicken + Beer Southern comfort fare, offered in partnership with entertainer Ludacris; Top Chef star Nyesha Arrington’s Native; LA-based Alfred’s innovative coffee and tea drinks, an airport outpost of the 100-year old Barney’s Beanery; and the popular mission-driven bakery Homeboy, featuring fresh handmade sandwiches, baked goods and express checkout through digital ordering and mobile pickup system. More Improvements Coming Also set to be completed shortly is the airport’s innovative Terminal Core project, a $490-million investment in creating new pathways of access for passengers to access the airport’s forthcoming People Mover train system. Scheduled to open in 2024, the expanded access will create “a sustainable and interconnected network for getting to and from the airport that has the added benefit of alleviating congestion and passenger wait times,” says Erbacci, noting that the project will also connect travelers to the city’s public transportation system. LAWA’s Capital Improvement Program team has also set its sights on completing

in-process projects such as overhauls to Terminals 4, 5 and 6, a consolidated rental car system and a $157.8 million power facility, as well as planning for next-phase projects like the 1.4 million square foot construction of Terminal 9, the Midfield South Concourse, and the half-million square foot extension of Terminal 1 known as Concourse 0. LAX’s exterior grounds will also get a significant overhaul, with a campus-wide Landscaping Improvement Program that will install native and drought-resistant plants at the street-level to give passengers and employees a “park like atmosphere” to enjoy.

The ambitious to-do list is all part of a plan to make LAX not only one of the world’s busiest airports, but also its most functional, says Merritt, who says the Capital Improvement Program will create “an airport where economic and environmental pledges move beyond policy into reality.” Merritt adds that LAX’s transformation is also “ensuring the vitality of LAX’s community and the greater Southern California region — we can’t wait to welcome guests to a new LAX where efficiency, thoughtful design and unexpected delights elevate our guests’ experiences.”

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DIRECTOR’S CHAIR

PASSENGER FOCUS With Major Events Upcoming In Philadelphia,, PHL’s Saeed Is Taking Action

BY C AROL WARD

ditor’s Note: Philadelphia is known as the birthplace of American democracy, and in 2026 the city will be celebrating the 250 th anniversary of the country’s founding. Philadelphia will also be a host city for the 2026 FIFAWorld Cup. With two big events – and many smaller ones – luring visitors to the city, Philadelphia International Airport is putting out its welcome mat. Preparations for 2026 and beyond are underway, even as the airport still grapples with a slow return to pre-pandemic traveler numbers. On December 1, 2022, longtime airport executive Atif Saeed was named CEO of Philadelphia’s Division of Aviation, which includes Philadelphia International Airport (PHL) and Northeast Philadelphia Airport (PNE). He is charged with guiding both airports through their next phase of growth. AXN Editor Carol Ward spoke with Saeed about his vision and plans. E

WARD: You’ve been leading PHL for about nine months. What were your key objectives when joining PHL, and what progress has been made thus far? SAEED: My primary goal when I joined the organization was to make sure that I invested sufficient time meeting with and listening to all the key stakeholders. This includes our own employees and our business partners that provide services to

our mutual guests. It also includes local and regional businesses and leisure industry leaders, elected officials, administrators, local, state and federal levels. I feel that taking the time to understand the existing state of an organization and understand the needs and aspirations of the community are critical to taking what is already a well-run organization to the next level. Additionally, I believe that building

Above: Atif Saeed, CEO, Philadelphia International Airport

Right: Philadelphia is known as the birthplace of the United States, and in 2026 the airport and city will welcome visitors in celebration of the nation’s 250th birthday.

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DIREC TOR’ S CHA IR

strong, trusted relationships is a prerequisite to achievingmutually beneficial results. I’vemade substantial progress with some work that still needs to be done in coming weeks andmonths. Also, we are going through an employee engagement survey to understand the sentiments of our employees to see how we can better their work environment. We are initiating an enterprise-wide conversation to determine if our pre-pandemic mission, vision and values are still relevant. With all of that said, obviously a few items have emerged since I got here. Probably the most significant was our airline lease negotiations. We’ve entered into an agreement with our airline partners for a three-year agreement with two additional one-year options, and the airlines have committed to about $935 million in projects over this period of time. Our second focus area is tomake sure that we are prepared for 2026. In 2026, we’re celebrating the birth of our nation, and [Philadelphia] a focal community for that celebration. We’re also welcoming FIFA World Cup, as well as many other events that are going to be happening. Our focus at this stage is onmaking the necessary investments in infrastructure, technology, our people and processes to ensure that people who are traveling to us in 2026 will have best possible customer experience.

WARD: I’d like to dig deeper on a few of those items, but first let’s talk about your passenger traffic. PHL isn’t quite back to 2019 levels yet. Is that due to a slower rebound for business and international travel? SAEED: In 2022 we welcomed about 25.2 million passengers. That was up 28.5% from 2021 but it’s still down about 23.6% from 2019, which was a record setting year for us. Through May 2023, our passenger volumes are down about 17% as compared to May of 2019 and our operations are down about 25%. To speak to the point about what is missing, it is in part the international connectivity and in part the connectivity that would lead to those international flights. During the pandemic American Airlines retired a lot of their equipment …and many of those planes were used for transatlantic connectivity. Since then, they’ve restored most of our primary destinations in Europe, but we’re still missing nine of what we would call boutique or secondary European markets, and that’s primarily because they do not have equipment to put on those routes. They are publicly committed to receiving [new planes] in the near future, and their commitment is that most of those planes

Above: Philadelphia International Airport’s passenger numbers are off their 2019 peak but are slowly building back as American Airlines restores routes cut during the pandemic.

will come to our market to restore that connectivity. On the other hand, the regional connectivity is impacted because of the pilot shortage. Lastly, there’s a component of connectivity from around the country, where they were bringing people here to connect them to European markets. [Some of] that is missing. All in all, we feel really good about where our overall air service is…and we have very clear commitment from American Airlines that they’ll bring service back. WARD: With the major events you mentioned happening in 2026, will those require some capital investment? What’s happening on that front? SAEED: There are some capital programs that are already in progress. For example, we’ve got a rest room renovation program. We’re investing $100 million in reconstructing all our passenger-facing

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DIREC TOR’ S CHA IR

restrooms. Simultaneously, we’re working on a hold room refresh program. This is a program that will increase charging stations and [address] elements like seating and lighting – just an uplift to the hold room areas. We are enhancing our queue management system, providing passengers with real-time updates on security checkpoint wait times through digital signage and through our website. And we’re upgrading our entire surveillance system. We are working on a few other things that are not as visible, but important. Simultaneously, we are going through master planning update which will give us a path going forward with a much more

robust set of projects to really meet the needs of our airport in coming years. WARD: Focusing in on the on the traveler experience, as passengers make their way through your terminals, what’s new or innovative or exciting? SAEED: A lot of these things predate me but I mention them because it really is about taking what is good and taking it to the next level. First, we have a guest experience stakeholder council – involving essentially all stakeholders at the airport, so airport personnel, airline businesses, governmental agencies, anybody and everybody that has a piece in creating an experience within the airport. We’re using this platform to celebrate

successes and ensure that there’s training and consistent support provided to all employees who work at the airport. The stakeholder council and the work that it is doing has been phenomenal and is really going to be instrumental in our success in 2026. We have done specific programs like a visual assistance program. In addition to offering in-person information service to our customers, we have a virtual information program that enables guests to talk live with an agent 24/7. Even when the kiosks are not staffed, travelers are able to communicate with somebody and get help. There are also QR codes located throughout the airport. We have a wagging tails brigade to surprise and delight folks with puppies. There are certified therapy dogs and they walk around the airport and bring a lot of joy to people. Then we recently celebrated the 25th anniversary of our arts program. There are a bunch of activities that we’re doing around that to celebrate, such as a scavenger hunt in the terminal. WARD: I know MarketPlace Development runs your concessions program. What’s the latest? SAEED: Things are going well - MarketPlace does a great job. There are some exciting developments. We opened Roam Fitness in Terminal F in July, which has been very well received. This fall, we’re going to have a few openings, like The Urban Juicer, Rip Curl, Brookstone… One exciting development is Chase is going to be opening a Sapphire Lounge in 2024. One thing that I’m really proud of in this program is the ACDBE participation. In 2022 alone, we had 12 concessions open that were either wholly owned or in partnership with ACDBE vendors, and ACDBE vendors had more than 80 million in sales in 2022, which represents about 45% of our total sales on food, beverage, retail. All in all, our revenues are up. We are seeing better spent from customers. WARD: Switch gears a bit, can you tell me about the cargo project you have underway? SAEED: In 2017 we did a study that revealed that we were only capturing 9% of the potential air cargo opportunity. That triggered a series of actions on our end, essentially looking to double our footprint on cargo. We have a bunch of enabling projects going on right now. This is going to [result in] a 1 million square foot new cargo facility. It will really put us in a competitive place with other airports that are handling cargo.

Left: One of the newest concessions at PHL is a Roam Fitness, offering workout options to both travelers and workers at the airport. Below: Restroom and holdroom upgrades, a queue management system at security checkpoints and an updated surveillance system are among the capital projects underway at PHL.

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Once Stand-Alone Amenities, Gaming And Youth Themes Enter Evolving Lounge Landscape

BY ANDREW TELL I JOHN

Whether they choose Fortnite, Gran Turismo, League of Legends or several sports themed titles, travelers at Dubai International Airport (DXB) can cozy up to a console, grab a high-resolution headset and game away their dwell time. DXB claims to be the first airport in the Middle East to incorporate gaming into its lounge space. The Game Space lounge, open 24 hours a day and available to all passengers for a fee, opened the lounge in late 2022. It’s located in Terminal 3 in the DXB Family Zone. Game Space debuted in November to coincide with the FIFA World Cup soccer tournament. “The launch provided travelers with the opportunity to make the most of the sporting fever,” says Game Space Co-Director Errol McGlothan. “It turned wait time into game time, delighting travelers with popular games.”

New Concept At DXB Gaming lounges at DXB aren’t designed to replace traditional lounges, McGlothan says. They’re a category of their own, offering travelers an additional choice for how they spend their time. Game Space, a partner of Airport Dimensions , is equipped with the latest in virtual reality and personal computer devices. It’s accessible to all travelers with packages starting from 30 minutes to unlimited hours daily or unlimited gaming through Priority Pass and Lounge Key memberships. “We offer a large selection of games suitable for children, teenagers and adults,” McGlothan says. “There are 40 game stations, each boasting 50-inch screens and side-by-side seating for solo or multi-player gaming. We’ve seen an extremely positive

Above, Below: Dubai International Airport last year became the Middle East’s first airport to incorporate gaming with a high-tech, 24-hour Game Space in its Terminal 3.

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Youth-Themed Offerings At Haneda, Istanbul Whether it’s specific to gaming or space more generally tailored toward younger travelers, DXB is hardly alone. Youth themed lounges – or at least incorporating them into traditional lounges – are starting to take off. Al l Nippon Airways , in 2017 incorporated the “Star Wars ANA Kids Lounge” inside its existing ANA Lounge in the Main Building South inside Terminal 2 at Haneda Airport (HND) . The mini-lounge design was based off a Star Wars-themed ANA aircraft called “R2-D2,” one of a handful of Star Wars themed jets the airline operates, says Manami Watanabe, products & services, customer experience at ANA. It included a slide, bench cushions, picture books and other items and the floor is covered with mats to let youngsters play in a safe environment. More recently, in early 2022, IGA Airport Operations , which operates Istanbul Airport (IST) , checked a few of those boxes when it unveiled a new youth lounge catering to passengers 15 to 30 years in age. The space offers four hours of wi-fi for a nominal fee, access to a PlayStation, music, a large screen projector, table soccer, complimentary board games and occasional live performances. Tailored to Gen Z, the youth lounge provides users - typically traveling by themselves - with affordable snacks, coffees and comfortable-and-spaced seating. “Our primary goal for iGA Istanbul Airport is to carry this exceptional structure beyond the point of just being a journey, and transforming our guests’ journeys into memorable experiences,” said Ersin Inankul, who until May was the chief digital and commercial officer at the airport, when it opened the lounge. The airport has traditional lounges for both international and domestic passengers that are available 24 hours a day for those looking for a business class experience. But it worked with university students to get insights for the youth lounge, asking how young travelers could better use their time in airports, adds the IGA’s communications team in a written statement. It’s been well received and may be expanded. “We always seek ways to adopt new trends and customer feedback into our services,” according to the statement. “We also make sure to keep up to date with current events

Above, Left: Istanbul Airport sought feedback from younger travelers on how they felt they could better use airport dwell time. The result is a youth lounge targeting passengers aged 15-30.

reaction to the space and see a huge benefit in offering more experiential spaces.” Alison Macdonald, vice president of commercial management at Dubai Airports, adds she expects to see similar concepts popping up. “Strong generational and technology trends are reshaping demand, and guests now expect their travel journey to include more experiential and immersive experiences,” she says. “Perhaps we will see a hub-to-hub airport tournament in the future. It’s fantastic to see the smiling faces of our guests as they enjoy their time at Game Space.”

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and have screened global championships, World Cups and tournaments in the lounge in order to attract young guests’ attention and entertain them.” Youth & Family Focus The experiential push by airports, both in lounge spaces and beyond, is well underway domestically and internationally. A recent report by the consulting firm Oliver Wyman predicted that physical spaces in airports will need to be designed and transformed within airports to accommodate passenger demands. But the report singled out lounges as growing in popularity and in demand enough where airlines are requesting the facilities be upgraded in terms of size and customer experiences by adding amenities such as cinemas, pools and virtual-reality gaming. Whether it’s incorporating gaming, targeting younger passengers or localizing

an airport’s amenities, international airports have been stepping up their respective games. Awrite-up on the website at No1 Lounges , which has lounges at airports in the United Kingdom, describes My Lounge on the south Terminal at London Gatwick Airport (LGW) as the only outdoor terrace at LGW. The lounge also includes a games room with video games, foosball and board games; a mix-your-own-cocktail area and a variety of food offerings. LGW’s website lists seven different lounge offerings fromNo1 Lounges, Plaza Premium and Clubrooms across the airport with the intent of meeting everyone’s needs. “As demand for airport lounges has increased over recent years, at London Gatwick we have worked to offer a variety of options available for all passengers,” says Hannah Wilson, senior property asset manager. “Regardless of what airline passengers fly with, we provide an array of options from family friendly areas to table service.” Credit Card Company Influence And the trend is growing domestically, as well.

While airlines still run their own lounges with primarily the business traveler in mind, credit card companies – started by American Express and followed by Chase and Capital One – have taken third-party lounges to a new level with both business and leisure travelers in mind. Originally, lounges were largely about seat count, but that landscape has changed, says Ginger Gee DiFurio, vice president and studio design director at Corgan , which develops lounges for many partners across the U.S. “The focus is really on an elevated hospitality experience in lounges,” she says. “So, by doing that, you have to cater to all your demographics – families traveling with kids or teenagers, or even grandparents, that’s becoming something people are really catering to.” So, while some airports are instituting gaming, sleep pods, nursing areas and other amenities throughout their terminals, they’re also asking lounge designers to fit in many of those same amenities. “It started out as we would get a request from clients that they want a family zone, that could be an area where maybe the seating is more friendly for family to gather in groups,” DiFurio says. “Then it became

Below and Following Page: From a wellness area to a family room, The Club Lounge at SFO opening next spring will have a bevy of offerings not often seen in previous lounges.

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as a Cherry Blossom Margarita, along with food from local purveyors. The lounge showcases hi stor ic architectural images of the airport’s original control tower and terminal and has teak wood architectural elements, mid-century modern furniture, local featured artists and custom mugs and pottery designed locally, as well. As for leisure travelers, those traveling with families will have available kid-sized tables and chairs and access to a parent’s room complete with comfortable seating, a well stocked changing table and a bottle warmer. Airport Dimensions Evolving Too The Club Lounge, opening at San Francisco International Airport (SFO) next spring, will also have a variety of offerings aimed at ensuring it meets the needs of all travelers. The space will have localized design elements, such as reclaimed wood with fire pits. There will be local artwork, a family room, a wellness area for yoga, showers, sleep space and more. “We’ve realized a lot of needs happen in an airport” says Gilles Bussutil, vice president of customer experience at Airport Dimensions, mentioning sleeping, gaming and lounging. “There is a huge market that we can attract if we respond to what they want during their time at the airport.” A few factors are driving this change domestically. It began taking shape during COVID as more people started using lounges to better keep their distance from other travelers. It has continued as airports nationwide are playing catch-up on infrastructure investments at airports and as passengers return to airports much more quickly than had originally been projected. “It’s almost like an aviation revival that we’re experiencing today with a strong understanding, first from all of the CEOs at airports, that they’re in the experiential business,” Bussutil says, adding that in the past, airports generated passenger spend without as much focus on providing a top experience. “Now they’re realizing that while we still need to be able to have revenue as airports, we are going to make sure that there is a value add to the customers and make sure the airport experience becomes a destination before your flight.”

‘ok, we need a room,’ because if you play with kids or kids need to play, there needs to be some kind of contained space.” And, while she would not say where, DiFurio indicated the next generation of lounges will often include gaming consoles, arcade games and who knows what else. The specific amenities in any given airport will depend on traveler data and demographics. Orlando International Airport (MCO) is a heavy leisure market so that traveler demographic will demand a different kind of lounge space than an airport that is heavily skewed toward business travel. Much of this, DiFurio says, has been driven by third-party lounges that started popping up when American Express started opening lounges for its cardholders. In recent years, Capital One and Chase have entered the race as have other independent lounge companies. “The competition has become a lot more fierce,” she says. Beyond games, kids and comfort, local feel is sneaking into airport lounges through design elements, food and beverage, art and even scents – much like the recognizable

smell, she says, of walking into a Four Seasons hotel. “It makes you want to go back and reminds you of that really pleasant experience,” she DiFurio says. “Localization is huge. It’s the biggest design trend these days for lounges. Travelers are looking for something that is unique when they go to each lounge.” The Trend Continues Capital One’s network continues to grow, as well, with its most recent opening at Washington Dulles International Airport (IAD) in early September. The new, 8,500-square-foot Capital One Lounge located just beyond security between the Transportation Security Administration’s East and West check points, was designed after the historic IAD terminal, which itself was designed by world-renowned architect Eero Saarinen. It contains a lot of the locally-inspired amenities and a lot of local feel mentioned by DiFurio, such as craft beers like a Pre-Flight Helles Lager, and cocktails,such

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