The airport professional's source for airport industry news, articles, events, and careers.
Issue link: http://airportbusiness.epubxp.com/i/370519
MANAGING AIRPORTS TODAY 36 airportbusiness August/September 2014 Today's airports are no longer restricted to food courts, magazine stands and duty-free stores. Around the world passenger terminals are morphing into luxury shopping malls and gallerias featuring brand-name boutiques and specialty retail; gourmet dining restaurants with regional cuisine; entertainment venues complete with live music, art and cultural attractions; as well as centers for knowledge exchange and booming business. Concierge-staffed business lounges and trade facilities are also sprouting up, as well as concourse-connected convention centers and high-end hotels. To put it simply, "city airports" are becoming mini "airport cities," vital entities open 24/7 and throbbing with non-stop activity and a steady stream of international passengers. It's an emerg- ing global trend that is seeing cities, business centers and entertainment venues rising up around large airports and making them desti- nations in their own right. Internationally, airport cities are already a real- ity. They are prevalent in Europe, the Middle East and Africa. In fact, Dubai is the world's largest aerotropolis. Heathrow, Frankfurt, South Korea and Singapore are all excellent aerotropolis success stories as well. While a little slower to catch on, the aero- tropolis trend is now starting to take hold in the United States, turning the traditional passenger terminal model upside down and shaking things up in the aviation industry. Seattle, Denver, Dallas and Orlando are a few of airports who are begin- ning to adopt the aerotropolis model. FORCES FUELING THE SHIFT So what are the forces that are causing this par- adigm shift and transforming traditional airports into modern airport cities? There are several factors: GLOBAL ECONOMY: Primarily, it's the economy. The global market is constantly evolv- ing and with it the role of the airport in regional and global economic development has rapidly expanded. Speed, agility and connectivity are key, making airports efficient gateways for global trade and drivers of global growth. ECONOMIC DOWNTURN: Also, the eco- nomic downturn was a wakeup call for airports. Funding dried up and challenged airport oper- ators to focus increasingly on non-aeronautical revenues. It has now become critical for airports to generate higher retail sales and uncover other ancillary income streams if they are going to survive and thrive in the future. INCREASED COMPETITION: Worldwide competition has increased dramatically in the last several years as more and more airports join the global economy and vie for passengers and business. To cope with these challenges and pressures and be competitive, airports are being forced to be dynamic, proactive, innovative and flexible. PASSENGER EXPERIENCE: Improving the overall passenger experience has become an overarching goal for airports. This has pushed Airport Cities Take Flight The rise of U.S. airport cities is helping boost annual revenues and fueling regional activity and growth A s the global economy expands and the balance of spending power shifts, the airport's economic role is changing. Not content with just providing infrastructure for the airlines or acting as a stagnant hub on the way from Point A to Point B anymore, airports are transforming into dynamic and vital elements of the travel value chain. By Thomas J. Marano An aerial view of Denver International Airport looking to the northeast, show- ing Jeppesen Terminal and the newest parking garage module in the immediate foreground.