"More Stores, More Passengers Add Up to More Spending at Indianapolis Airport"

Monday, May 17, 2004

More Stores, More Passengers Add Up to More Spending at Indianapolis
Airport
The Indianapolis (IN) Star


Passengers who lost the stomach for flying after the 2001 terrorist
attacks are regaining their appetites -- at least for food and retail
items sold at Indianapolis International Airport. 

Concession sales were stagnant in 2001, sticking near the previous
year's level of $23.5 million. But sales climbed to $26.6 million in
2003, an 8.6 percent increase over 2002 figures of $24.5 million. 

The rate of increase in sales roughly paralleled the 7 percent rise in
passengers last year. About 1.81 million passengers passed through the
Indianapolis airport in 2003. 

"I think, most definitely, it has a lot to do with higher passenger
traffic," Pauline Armbrust, publisher of Airport Revenue News, said of
retailing gains among airports. 

The trade publication ranked Indianapolis International 10th nationwide
in spending per boarding passenger in 2002 but has not yet completed
2003 rankings.

Beyond the increase in passengers, airport officials say sales are up
because of more and better concessions in gate areas and because
passengers continue to arrive earlier to clear security. While a pain
for passengers, such "dwell time" is a big factor in airport retailing,
Armbrust said. 

"The request to get here two hours early has helped," agreed Mary Ann
Falatic, retail director for airport management firm BAA Indianapolis. 

Although passengers still tend to spend more on the "land side," or
ticket-counter part of the terminal, spending per boarding passenger in
that area fell 2.2 percent in 2003 to $4.87. The land side includes the
airport's large food court. 

Meanwhile, sales per boarding passenger last year on the "air side," in
the secured gate areas beyond security checkpoints, rose 10.8 percent
last year to $2.36. 

The airport's beefed-up air-side concessions include a Starbucks and
Simply Books in Concourse A. In Concourse B, where security lines back
up during certain times of the day such that the checkpoint wound up on
a national trouble list among airlines, a Subway and a Smoothie King
have recently opened beyond the checkpoint where passengers may be more
inclined to stop. 

"The additional concessions are much appreciated. Certainly they're
(airport retailers) traveling in the right direction," said Robert
Kanaby, who with his wife, Pat, last week downed sandwiches inside the
Concourse B Subway. 

As executive director of the National Federation of State High School
Associations, Kanaby flies a lot. He gives higher marks to Cincinnati's
mix of airport concessions. 

Jeff Gilmore of Fort Wayne said he's also seen better. "It's not as good
as Pittsburgh. . . or West Palm Beach" airports, he said. 

Gilmore stopped last week at the InMotion Pictures store, an airport
newcomer that rents DVD players and videos to watch onboard. 

Retail offerings at the Indianapolis terminal won't get much better, at
least until 2008 or later, when a new midfield terminal is expected to
open. BAA and the Indianapolis Airport Authority are reluctant to pour
significant money, other than for basic maintenance, into expanding
concession space while spending $974 million on the new terminal. 

"We're pretty maxed-out on space from a concession standpoint," said
Falatic. 

In the mean time, she is trying to improve the mix of popular
concessions and to place them strategically. For example, several
fast-food shops have been placed in Concourse A, home of no-frills
airlines that have little or no food service. 

"It's no coincidence there's a Subway grab-and-go at the Southwest
(Airlines) gate," said BAA spokesman Dennis Rosebrough. 

Last month, Airports Council International awarded its "most innovative
concession" award to Indianapolis International for Passport Travel Spa.
The minority-owned business started by a former New York City investment
banker offers hair and nail care and massages. 

Recruiting such concessionaires isn't easy, however, given that none of
the existing operators are guaranteed space in the new terminal. 

Talks are under way between the airport and three concessionaires to
occupy new or vacated space in the existing terminal. One new space will
open on the land side where there currently are vending machines. 

A Chick-fil-A soon will open in a space vacated by Long John Silver's.
"We're constantly looking at our mix," Falatic said. 

WHAT'S NEW 

Here's a look at retailers that have opened at Indianapolis
International Airport in recent months. 

--Concourse A: Starbucks and Simply Books 

--Concourse B: Subway and Smoothie King 

--Concourse B/C: InMotion Pictures 

--Food court: Chick-fil-A (opening soon)


 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dcfp/dcboard.php


*****************************************