Incorporating Technologies into Airport In-Terminal Concession Programs

The pandemic has accelerated the adoption of technologies in consumer purchase behavior and concessionaire operations. This is being reflected in airport in-terminal concessions. For example, e-commerce is often preferred to in-store purchasing of retail goods and food services, and some airports have started to implement omnichannel e-commerce platforms to deliver an advanced retail experience for passengers. The success of airport in-terminal concession programs will rely on much more than simply rolling out new technologies. Airports need to understand the challenges and opportunities these technologies might offer, how they would meet customer needs, and their impact on airport and concessions operations. However, there is little information and few resources available for airport operators to make informed decisions as they consider the incorporation of technologies into their in-terminal concessions programs. The objective of this research is to develop a primer, framework, tools (e.g., flowchart, decision tree, checklist), and case studies to help airports identify, evaluate, select, and incorporate appropriate technologies into their in-terminal concessions programs. The primer should define and describe relevant current and emerging technologies and document the role of technology in airport in-terminal concessions programs, with an emphasis on developments since 2019. The framework and tools should be practical, scalable, and adaptable to specific airport characteristics (e.g., size, governance) and needs. They should address, at a minimum, the following topics relative to airport concessions and technology: (1) ssessing consumer buying habits; (2) Evaluating the impacts of existing and emerging technology on internal (back-of-the-house) and external (passenger-facing) concessions processes; (3) Determining technology preferences of various customer demographics; (4) Identifying potential risks (e.g., data privacy, operations, security); (5) Defining capital expenditure (e.g., hardware) and ongoing operating (e.g., software, personnel) costs; (6) Developing revenue projections/business cases (return on investment); (7) Defining key performance indicators and success measures (e.g., revenue and operational metrics, customer experience); (8) Identifying operational efficiencies and challenges; (9) Use and stewardship (e.g., transparency, privacy, accountability) of data; (10) Interoperability and compatibility with other technology infrastructure; (11) Developing a cross-functional team within the airport’s organization to launch technology-related initiatives; (12) Considering challenges and opportunities for local and/or small-business concessions; (13) How an airport’s concessions business model impacts the identification and adoption of new technologies; (14) How new technologies can impact existing and/or foster new business agreements; (15) Identifying relevant external stakeholders for coordination/buy-in; and (16) Potential impact of technology on concessions workforce (e.g., staffing level, skillsets, training, employee well-being, retention). The case studies should be used to both inform the research and provide lessons learned and examples of a variety of successful uses of technology in airport in-terminal concessions and relevant non-airport concessions programs.

Language

  • English

Project

  • Status: Proposed
  • Funding: $500000
  • Contract Numbers:

    Project 03-70

  • Sponsor Organizations:

    Airport Cooperative Research Program

    Transportation Research Board
    500 Fifth Street, NW
    Washington, DC    20001

    Federal Aviation Administration

    800 Independence Avenue, SW
    Washington, DC  United States  20591
  • Project Managers:

    Navarrete, Joseph

  • Start Date: 20230117
  • Expected Completion Date: 0
  • Actual Completion Date: 0

Subject/Index Terms

Filing Info

  • Accession Number: 01853996
  • Record Type: Research project
  • Source Agency: Transportation Research Board
  • Contract Numbers: Project 03-70
  • Files: TRB, RIP
  • Created Date: Aug 9 2022 10:56AM