Since
September
11, 2001, the economics of the
airport concession industry have changed dramatically due to the new higher
level of security.The need for passengers
to clear security and arrive at their gates has become critical and created a
financial disaster for concessionaires in “main terminals.”
Simply stated, their customers (passengers) are being directed away
from retail and food concessions in main terminals and told, “to go to their
gates as soon as possible.”The policy of directing
passengers to their gates has and will continue to destroy the business of
concessionaires in main terminals.Hence, major airports are now
re-configuring their main terminal concession program.All airport concessionaires have
experienced a decline in revenues because of 9-11; however, the
concessionaires in airport terminals have been affected the greatest.Most international airports recognize the
problem and have implemented the “short-term” solutions we have outlined
below:
The
airport concession industry will not recover from the 9-11 events before 2004
or 06 according to industry experts. International airports will have to
“re-concept and configure” their main terminal concessions to better
accommodate security, and provide financial support for concessionaires. The international airport concession
industry will experience major changes during the next sixty months, and RMD
Financial will play a role in the process.
