Airports Redefine the Passenger Experience: Culinary Delights and Digital Innovations

Airports have evolved far beyond their traditional role as mere transit hubs, transforming into vibrant hubs of commerce, entertainment, and culinary experiences. As the aviation industry continues its steady recovery from the pandemic, airports are now focusing on non-aeronautical revenue sources, including food and beverage offerings, to enhance the overall passenger journey. Industry experts delve into the key trends and technological advancements that are shaping the future of airport dining and driving revenue growth.

Elevating the Airport Dining Experience: A Recipe for Success

The Rise of Non-Aeronautical Revenue

Airport food and beverage services have undergone a significant transformation in recent years, emerging as a crucial source of non-aeronautical revenue. According to Slava Cheglatonyev, Director of Economic Policy and Sustainability at ACI World, "Food and beverage is a rockstar of airport non-aeronautical activities." This sentiment is supported by industry statistics, which show that non-aeronautical revenue now constitutes 40% of total airport income, with food and beverage accounting for a steadily growing share.Between 2015 and 2019, the contribution of food and beverage to non-aeronautical revenue grew from 7.6% to 8.1%, underscoring the importance of this segment to airports' financial health. Airports are no longer viewing food offerings as mere transactional experiences but are striving to make them an integral and memorable part of the overall passenger journey.

Digitalization: Enhancing Efficiency and Experience

Technology is rapidly reshaping the food and beverage landscape at airports, with digitalization playing a pivotal role. According to Stephen Freibrun, Senior Principal of Global Commercial Airport Practice at ICF, airports are leveraging technology to enhance both revenue and customer experience.Passengers are increasingly demanding more control over their dining experiences, and airports are responding by implementing self-ordering kiosks, AI-powered recommendations, and mobile ordering apps. These digital ordering systems not only provide convenience to passengers but also help increase average transaction sizes, with web-based orders typically 58% higher than mobile app orders.Beyond streamlining the ordering process, airports are also employing autonomous checkouts, AI-driven suggestions, and even robotics to optimize service efficiency. However, Freibrun cautions against completely removing human interaction, emphasizing the need to find the right balance between convenience and personalized customer service. Personalized assistance, issue resolution, and positive interactions can foster customer loyalty, which is crucial as some passenger demographics may be reluctant to embrace new technologies.

Local Flavors and Street Food: Connecting with Passengers

Another emerging trend in airport food and beverage is the growing demand for street food and local cuisine. Emmanuel Baah, Deputy General Manager of Estates Planning and Business Development at the Airport Authority of Trinidad and Tobago, notes that there is a rising interest in incorporating local food culture into airport dining options.The global popularity of street food reflects passengers' desire for authentic and unique dining experiences. Baah cites data from Ibis World, which shows that street vendor revenue is expected to grow by 12.3% throughout 2024. Airports are capitalizing on this trend by offering passengers a taste of local culture before they even leave the terminal, from iconic local food brands to street food pop-ups.This focus on local cuisine also aligns with broader consumer trends toward sustainability and conscious consumption. As more passengers seek out eco-friendly and socially responsible options, airport food and beverage operators must ensure their offerings meet these expectations. Baah notes that between 2020 and 2023, there was a 37% growth in food and beverage purchases related to forest protection claims.

Harnessing Data and Collaboration for Optimal Performance

Data has become a critical tool for airports and concessionaires alike in optimizing food and beverage operations. Freibrun emphasizes the importance of leveraging granular passenger data, such as flight schedules and passenger flows, to help concessionaires plan their staffing, inventory, and menu offerings more effectively.This data-driven approach allows airports to determine the most profitable hours, popular menu items, and even the best locations for pop-up shops, enabling them to make informed decisions and enhance the overall passenger experience.Additionally, collaboration between food and beverage operators and other airport retailers is gaining traction. Integrated retail strategies, where food, beverage, and retail work together to create a cohesive passenger experience, are becoming more common. According to the survey results presented during the webinar, 79% of airport professionals believe that collaboration between food and beverage and other categories is either "very effective" or "somewhat effective" in driving additional revenue.

The Future of Airport Food and Beverage: Embracing Innovation and Personalization

As the aviation industry continues its recovery, the airport food and beverage sector is poised for further innovation and growth. The ACI traffic forecast predicts that global passenger traffic will reach 9.5 billion in 2024, surpassing 2019 levels. This surge in passenger numbers presents significant opportunities for airports to enhance their food and beverage offerings and drive revenue.Airports that leverage digitalization, local food trends, and data-driven strategies are well-positioned to create a compelling food and beverage environment that meets the evolving needs of today's travelers. As Mark Angela, Chief Business Development Officer at SSP, pointed out, "Experiences are driving the growth of food and beverage at airports."By offering unique, localized dining experiences and incorporating technology to improve efficiency and personalization, airports can not only enhance passenger satisfaction but also drive incremental revenue. As the industry continues to evolve, the future of airport food and beverage lies in the ability to seamlessly blend technology, local flavors, and personalized service to create a truly memorable and immersive passenger journey.