Nashville International Airport wins 2011 Griesbach Award of Excellence

Airports Council International-North America (ACI-NA) recognized Nashville International Airport as the Richard A. Griesbach Award of Excellence winner in the 2011 Airport Concessions Contest. Darrell D. Watson, Director of Properties, Louisville International Airport, was also recognized as ACI-NA’s Concessions “Person of the Year”.

Nashville’s concession program provides the opportunity for passengers and guests to taste and experience Nashville while at the airport. The program focuses on creating a travel experience that reflects the Music City’s diversity and hospitable spirit, while considering the impact of existing and  new security requirements on concessions and customer service convenience in the Terminal.

“Now in our fourteenth year of holding the Richard A. Griesbach Excellence in Airport Concessions Contest, ACI-NA congratulates Nashville as this year’s overall award of excellence winner,” said ACI-NA President Greg Principato. “These award-winning entries help promote the innovative spirit within the airport concessions industry as well

Darrel D. Watson receives 'Person of the Year' at 2011 ACI-NA Concessions Conference

as showcase the best programs in North America.”

Under Darrel Watson’s leadership, over the last two years Louisville International Airport has experienced higher revenues and increased levels of customer

satisfaction. Through his efforts, the airport has secured contracts for a new retail and food and beverage program, rental car and wireless internet concessions, and taken over management for a large cargo service building. Watson is an active participant with ACI-NA, American Association of Airport Executives (AAAE) and serves as president of the Kentucky Aviation Association.

“We are proud to honor Darrel Watson as this year’s ACI-NA Concessions ‘Person of the Year’,” said Principato. “Darrel’s enthusiasm and creative approach to the business of airports at Louisville International serves as an inspiration to his colleagues.”

The awards were announced during the 2011 ACI-NA Airport Concessions Conference in Atlanta, at which more than 350 representatives of the North American airport concessions industry are in attendance. The purpose of the ACI-NA Excellence in Airport Concessions Contest is to inspire creativity in the industry and to recognize innovative and outstanding airport concessions.  Under the continuing financial stress that airports experience, these awards help to demonstrate the importance of airport concessions.

This year’s contest received 150 nominations from airports of all sizes throughout the U.S. and Canada. In addition to the Greisbach award, 24 other awards were presented in the following categories:
Richard A. Griesbach Award of Excellence

• Nashville International Airport

Concessions Person of the Year

• Darrell D. Watson, Louisville International Airport
  

Best New Food and Beverage Concept

• 1st Place: Surdyk’s Flights, Minneapolis-St. Paul International Airport (operated by Surdyk’s Flights)
• 2nd Place: Healthy Gourmet, John F. Kennedy International Airport (operated by Mar Air Foods)
• 3rd Place: Burger Bar by Chef Allen, Ft. Lauderdale-Hollywood International Airport (operated by Delaware North Companies – Travel Hospitality Services)
• Honorable Mention: URBANCRAVE, George Bush Intercontinental Airport (operated by SSP America)
• Honorable Mention: Red Mango, Midway International Airport (Operated by Mac One Midway, LLC)

Best “Green” Concessions Practice or Concept

• 1st Place: Recycling: Grease to Biofuel and Recycling: Cardboard Boxes, Detroit Metropolitan Wayne County Airport (operated by Bradford Airport Logistics)
• 2nd Place: Enroute Spa, Indianapolis International Airport (operated by Enroute Spa)
• 3rd Place: Soundbalance, George Bush Intercontinental Airport (operated by Project Horizon)

Best New Retail Concept

• 1st Place: U*Tique Shop, Hartsfield-Jackson Atlanta International Airport (Operated by Utique, Inc.)
• 2nd Place: iStore, Toronto Pearson International Airport and Vancouver International Airport (operated by LS travel retail North America)
• 3rd Place: Flip Flop Stop, Savannah/Hilton Head International Airport (operated by Mercer retail Services, Inc.)

Best New Consumer Service Concept

• 1st Place: Samsung Passenger Service Sponsorship, Dallas/Fort Worth International Airport (operated by Samsung Telecommunications America, LLC)
• 2nd Place: Minute Suites, Philadelphia International Airport (operated by Minute Suites)
• 3rd Place: XpresSpa, John F. Kennedy International Airport (operated by XpresSpa)

Best Food & Beverage Program

• 1st Place: Newark Liberty International Airport – Terminal C
• 2nd Place: Indianapolis International Airport
• 3rd Place: Louisville International Airport
• Honorable Mention: Boston-Logan International Airport – Terminal C

Best Convenience Retail Program

• 1st Place: McCarran International Airport

Best Specialty Retail Program

• 1st Place: Philadelphia International Airport – B/C Connector
• 2nd Place: Minneapolis-St. Paul International Airport – Concourse C Cart Program
• 3rd Place: Louisville International Airport

Entries for this year’s contest were judged by an independent panel comprised of high-level professionals with no vested interest in concession operations, or the outcome of any one airport. In addition to the independent panel, one representative from the previous year’s overall winner was also involved in the judging process.

The ACI-NA Excellence in Concessions Contest, which began in 1998, honors the contributions of Richard A. Griesbach, a long-time industry professional in airport concession programs.  Greisbach’s influence on the commercial development of airports extended far beyond his employment with the Metropolitan Washington Airports Authority. The Concessions Person of the Year category was added in 2007.

Previous winners of the prestigious Griesbach Award of Excellence include:

2010 – Vancouver International Airport

2009 – John F. Kennedy International Airport─Terminal 5

2008 – Boston Logan International Airport

2007 – Seattle-Tacoma International Airport

2006 – Memphis International Airport—Concourse B

2005 – Edmonton International Airport—Central Hall

2004 – LaGuardia Airport—Central Terminal Building

2003 – No winner

2002 – Philadelphia International Airport

2001 – Calgary International Airport

2000 – Minneapolis/St. Paul International Airport

For the last five years, I have heard about the great speakers and informative program, as well as the networking opportunities that make this meeting a “not to be missed” event for airports, concessionaires and consultants.  I was excited to attend my first Concessions Conference to see for myself what the buzz was all about.  And so far, it has been lived up to my high expectations, with a great keynote speech from Jerry Wilson, SVP and chief customer and commercial officer with The Coca- Cola Company and lots of really useful information on the state of the industry.

But what I was really looking forward to was the airports’ version of the Oscars, especially the announcement of the Richard A. Griesbach Excellence in Airports Concessions Award.

Nashville’s Rebecca Ramsey with the Griesbach Award and ACI-NA President Greg Principato and CNN’s Robin Meade.

Such an event deserves a fabulous MC and we had one! Robin Mead, star of HLN’s Morning Express”, which is also seen on CNN’s Airport Network from 6 to 10 AM, not only presented the awards but entertained the crowd with a great story about being the only journalist invited to accompany President George H.W. Bush on a tandem skydive to celebrate his 85^th birthday.

Robin was clearly familiar with many of the airports celebrated at the luncheon and she complimented a number of the restaurants and shops, asking questions about new concepts that piqued her interest. She thanked Hudson News for carrying her book and joined the crowd’s enthusiastic response when Gerard Lim, Manager, concession leasing, from Vancouver Airport Authority announced that Nashville International Airport was the 2011 Griesbach winner.

Ironically Robin had just reported that earlier in the morning she asked her twitter followers for their favorite airport concession and the winner was Tootsie’s Orchid Lounge Bar at Nashville International Airport.  Reminding the crowd that Nashville Airport pipes music into their restrooms, she suggested that Rebecca Ramsey, assistant director of properties, who accepted the award for the airport, make sure that her CD (a copy of which was given to all luncheon attendees) is added to the airport playlist.

Congratulations to all of the winners and thanks to everyone attending the conference. Thanks also to all the men and women who work diligently to provide great retail options, as well as food and beverage services to passengers and other airport users.

“Airports recognize the importance of customer-centric concessions programs,” said Greg Principato, president of ACI-NA. “Our survey data overwhelmingly show that airports understand that competition is not only important in air service but also in providing a variety of concessionaire offerings.”

Ninety-five percent of the responding airports are collecting passenger information in order to better meet the needs and expectations of air travelers.  Specifically, airports conduct price surveys, routinely meet with concessionaires, and contract outside audits to ensure that food & beverage and news and specialty retail establishments are meeting quality standards.

From an airport revenue standpoint, ACI-NA benchmarking data shows that on average customers spent $4 on food and beverage and $2.72 on news, gift and specialty retail per enplanement in 2009.

Airport data reported to the FAA indicate that total revenue from terminal concessions (food, beverage, retail and services) was $1.41 billion in 2009, down 4 percent from 2008 ($1.47 billion). Revenue from food and beverage programs at U.S. airports represents 33 percent of the total 2009 terminal concessions revenue; retail represents about 40 percent.

“In addition to fixed retail, airports’ carts and kiosks program provide small businesses the opportunity to have a presence in concession programs as well as enable airports to cater to ever-evolving market trends and demands,” said Principato.

• 41 percent of respondents have food and beverage kiosks
• 53 percent of respondents have news, gift and specialty retail shops

The survey results were released during the 2010 ACI-NA Airport Concessions Conference in Phoenix, which brings together more than 300 representatives of the North American airport concessions industry.

ACI-NA on Tuesday recognized Vancouver International Airport as the Richard A. Griesbach Award of Excellence winner in the 2010 Airport Concessions Contest. Dick Dickson, chairman of The Paradies Shop, was also recognized as ACI-NA’s Concessions “Person of the Year.”

ACI-NA President Greg Principato and ACI-NA Chief Financial Officer Brett McAllister present the 2010 Richard A. Griesbach Award of Excellence in Concession Management to Sue Stiene, director of retail and passenger services at Vancouver International Airport. The presentation was made Tuesday in Phoenix at the ACI-NA Airport Concessions Conference.

Vancouver’s concession program offers its customers 167 shops, services and restaurants. It consists of a series of 10 zoned streets and plazas that showcase regional areas of British Columbia. Artwork, water-features, aquariums, and unique interior design and architecture all work together to create mini “town squares” around which food and beverage are focused.

“Now in our thirteenth year of holding the Richard A. Griesbach Excellence in Airport Concessions Contest, ACI-NA congratulates Vancouver as this year’s overall award of excellence winner,” said ACI-NA President Greg Principato. “These award-winning entries help promote the innovative spirit within the airport concessions industry as well as showcase the best programs in North America.”

Under Dick Dickson’s leadership for the last six years, Paradies Shops has been honored with awards for achievement and distinction, including the American Minority Advisory Council’s (AMAC) “Business Partner Award” for the company’s progressive Disadvantaged Business Enterprise partnership plan. Dickson places a high priority on being the best in business and has provided a solid foundation that allows the company to achieve success year after year.

“We are proud to honor Dick Dickson as this year’s ACI-NA Concessions ‘Person of the Year’,” said Principato. “Dick’s tenacity and commitment not only to The Paradies Shop but to the overall airport retail industry serves as an inspiration to his colleagues as well as those under his leadership.”

The awards were announced during the 2010 ACI-NA Airport Concessions Conference in Phoenix, at which more than 300 representatives of the North American airport concessions industry are in attendance. The purpose of the ACI-NA Excellence in Airport Concessions Contest is to inspire creativity in the industry and to recognize innovative and outstanding airport concessions.  These awards help to demonstrate the growing importance of concessions to the total airport experience for passengers.

This year’s contest received 140 nominations from airports of all sizes throughout the U.S. and Canada. In addition to the Griesbach award, 21 other awards were presented in the following categories.

List of winners.

This morning’s keynote speaker David Cavazos is the City Manager of Phoenix, being promoted from an airport director’s position.

He highlighted that the “single most important element of good business is good relationship.” He said that “concessionaires that build relationship with the airport community, small business, WBE, are often the most successful.”

He offered some “ingredients to a good relationship”:

1. Respect = Actions, not words
2. Like = Don’t outshine your mentor, … Business Development
3. Be willing to help – not your competition
4. A collaborator = mutually beneficial
5. Capacity to help = has to have something to offer, not about charity

The conference will run for two days ending with a tour of the Phoenix Sky Harbor International Airport on the morning of Thursday Nov.11. The conference program will continue with industry updates, green airport concession design, savvy & conscientious concession programs, and food trends. Day 2 of the program will feature a presentation by Bruce Kimbrell, Facilitator, Disney Institute on Disney’s Approach to Quality Service.

Bill Restall, of the Saskatoon Airport Authority, kicked off the session highlighting the shift in reliance from aviation fees to non-aviation fees to allow the airport authority to become a low-cost airport for their airline partners.

First speaker Lois Kramer set the context for the need for revenue development from a big picture perspective. She laid out market factors that impacted airports in the past and those factors that will continue to challenge airports such as airline bankruptcies and mergers, technology, and the shortening of airline use and lease agreements. As many of the airport revenue sources are passenger dependent and there is future risk of insufficient trust funds, she believes future revenue opportunities exist at the boundaries of shared responsibility.

Lysa Scully of the Port Authority of New York and New Jersey presented their revenue strategy from non-traditional aviation operations: new concession programs that allow passengers the ease of ordering food right from the gate area, premium reserved parking, digital signage advertising, and new customer services that have a revenue component.

Hans Miller then presented mobile opportunities designed to interact with airport revenue generation such as pre-order dining, car service, express security, premium parking and last-minute hotel.

Although the increase is slight, airports are looking forward to the increase in passenger traffic. Some airports are rolling out some new programs and initiatives:

• Fresno Yosemite International Airport will have newly expanded ticket counters, security check-in, consolidated rental car facility, and expanded baggage claim carousels.
• Oakland International Airport has also launched the new Premier Parking product which allows customers to park within “footsteps to their flight” and pick up a complimentary bottle of water and a newspaper as they head into the terminal or pick up their car coming home.
• In mid-summer Minneapolis-St. Paul International Airport will unveil a new digital concierge program, enabling travelers to search for and obtain information specific to their needs at the airport.
• Mineta San José International Airport will have all new concessions with its modernization program, and most will be in place, up and running, by the end of June with 40 new shops and restaurants in Terminals A and B.

Other airports have been working steadily during the economic downturn to be ready when growth returns, performing needed facility maintenance or rehabilitation, or other projects that enhance safety. Why? The need for new airport infrastructure to meet the demands of future air traffic is substantial. There are also a number of airports that desperately need to modernize and repair aging infrastructure to ensure passenger safety and customer service.

This is why it is so important to have critical financial tools in place, such as an increase in the Passenger Facility Charge (PFC) cap.  Airport infrastructure investments will be challenged to continue without raising the cap to $7. Due in large part to the devaluation of the PFC because of construction cost inflation, the current $4.50 level doesn’t allow airports the financial resources necessary to invest in improvements that ultimately benefit the traveling public. The modest PFC increase is included in the House FAA Reauthorization bill and an increase in Airport Improvement Program (AIP) funding is included in both the House- and Senate-passed bills.

It is important to remember that these resources are also important to enable the FAA to modernize the nation’s air traffic control system and make airfield capacity-enhancements at airports.

While ATA’s predictions are for small growth in the short term, FAA and industry consultants do expect more robust increases as the economy recovers.  Airports know that they have their work cut out for them; but if provided the necessary resources, they will be able to provide the safety, capacity and efficiency improvements that passengers will demand.

December 2009

It’s no shock to anyone that the struggling economy has affected airport operations—particularly in the concessions realm. According to the article, while sales per enplaned passenger have held steady, overall revenue at airports is dropping because of the drop in passenger numbers. Specialty retail has been hit the hardest, dropping anywhere from one to eight percent.

But airports and their partners are choosing to take advantage of the economic lull to reevaluate and improve operations. Some concessionaries have changed their hours of operation to meet busy traffic periods and to cut costs. Other airports are offering personal services and conveniences such as pet kennels and sleep hotels. In doing so, airports will be prepared for passenger demands when traffic returns.

Other stories featured in the December issue of Centerlines include:

• - Airports: Complex Responsibilities in Challenging Times
• - The Screening Partnership Program: Is the Opt-Out Still an Option?
• - Enabling the Disabled: Curb-to-Curb Accessibility is a Never-Ending Struggle

Click here to read the cover story. Click here to view the entire December Centerlines issue.

The Airport Mall in the Lindbergh Terminal at MSP.

At this time each year, airports are going the extra customer-service mile by reaching out and connecting with their communities. As a result of the airports’ efforts, passengers can enjoy a little extra holiday cheer, and give a little back in return.  Whether it is local choirs making appearances at airports across North America to sing holiday favorites, or seeing the big jolly fellow in the red suit, airports go that extra mile to offer time to reflect on the season.

In Jacksonville, local school groups will show off their musical talents for all airport passengers to enjoy. Also, a Christmas tree contest invites travelers to vote on their favorite tree with a $1 donation that will benefit Dreams Come True.

And in Washington, D.C., the National Christmas Tree will pale in comparison to the trees at MWAA’s Reagan National and Dulles. Students from the District of Columbia, Virginia and Maryland will make their own ornaments creating a “Winter Wonderland” that even the most harried of passengers will stop and appreciate.

Serving passengers is not just a holiday trend for airports; airports serve passengers throughout the year. ACI-NA recently surveyed airports for its 2009 Concessions Benchmarking survey:

• Airports know their passengers: The majority of airports surveyed have updated passenger data in the last 2 years.
• 2/3 (66%) of the airports conduct customer satisfaction studies.
• Half of the airports (51%) require minimum staffing levels for concessions.
• Airports establish standards to maintain quality concession programs. The top three concession monitoring programs:
  - Airports must approve changes in service hours
  - Airports conduct facility inspections
  - Airports conduct routine meetings with concessionaires

Airports are not just depots for travelers to just sit and wait, they offer passengers an opportunity to optimize their time by shopping for those holiday gifts while waiting for their next flight. Airports are the faces of their communities and sources of philanthropy and optimism. Check back with Centerlines Blog for more examples of how airports are on the ‘nice list’.

For pictures of holiday events and specials at airports throughout North America, check out ACI-NA’s Facebook page.
-Brett McAllister, CFO

Most people don’t think of an airport as a business, but that is exactly what it is.  It is a business that depends on passengers choosing to travel through that facility and airlines selecting that community to connect to their network.  And it’s about controlling costs and increasing revenues.  Roger Yu’s article in today’s USA Today provided good information on airport revenues in 2008 and we were pleased that data collected by ACI-NA was featured prominently in his story.

While the data from 2008 represent the most recent figures available at this time, it is important to remember that the economic situation for airports steadily declined in 2009.  While airlines began to reduce flights in the last quarter of 2008 (with cuts of 6.0% for large airports in December 2008 versus December 2007, 14.1% for medium hubs, 9.1% for small hubs and 7.4% for non-hub airports), the hits kept coming in 2009.  Airports have seen additional reductions, with airline schedules filed for December 2009 showing cuts of 1.3% for large hubs, 4.7% for medium hubs, 3.1% for small hubs and 6.4% for non-hubs, compared with December 2008.

Airports have responded to 15 months of flight cuts by decreasing their budgets wherever possible and in some cases laying off staff or implementing furlough days.  About half of the 30 airports that participated in a short survey in June 2009 said they were cutting their existing 2009 budgets and the vast majority had also deferred capital projects.  There was a scramble to raise non-aeronautical revenue, in order to maintain or even reduce airline fees to retain air service. Almost everyone raised parking and advertising rates and enhanced their terminal concession programs to provide more options for passengers, with the hope of retaining retail revenue.

We expect that the 2009 numbers will not be as positive as 2008, for both non-aeronautical and aeronautical revenue.  At last week’s ACI-NA Concessions Conference, Stephen Palmer of Lonely Planet reminded us that globally inbound tourism is down 7%, meaning there were 40 million fewer travelers in 2009 than in 2008.  When asked if  business travel will recover, he noted that American Express says it’s “brutal” and predicts no pick up until end of 2010. Today Morgan Stanley released a report with information from its 2010 Corporate Travel Survey. The report said that “corporate travel managers expect overall travel budgets to be up modestly next year, on average. Specifically as it relates to air travel spending, the majority of surveyed dollars anticipate bookings and airfares will be “Flat” to “Up 1% – 5%” next year…”  Also “Should economic activity surprise to the upside in 2010 relative to corporate travel managers’ current expectations, any adjustment to budgets will likely take at least 2 to 3 quarters.”