Panelists envision airports we’ll enjoy getting stuck in
Urban Land Institute meeting looks at trends and opportunities to take travel to the future
Airports could evolve into small cities with office complexes, hotels and shopping centers that entice travelers to stick around and spend more money.
Turning airports into these mini economic zones will present an opportunity for private investment and public-private partnerships, panelists said Wednesday during an Urban Land Institute luncheon discussing the trends and opportunities for airport real estate.
“Most airports, you want to get in and out of because they’re not necessarily the experience you want to dwell in,” said Benjamin Richter, founder and CEO of Bradford Airport Logistics. “The goal is to create an airport experience where you actually go to this center because it is the most effective place to do business. You want to dwell there.”
The cost to do that could be enormous. Simply upgrading U.S. infrastructure to accommodate the next 30 to 50 years of air traffic could require more than $150 billion, said Andrew Right, managing partner and founder of Related Infrastruc-
ture. Much of that will be private capital.
Right and the other panelists encouraged audience members to begin envisioning 30-year plans. But they also discussed more current trends, like how airports are moving from quick-service restaurants to chef-inspired foods, and adjusting to disruptions in the industry.
“The disruptors in aviation are really coming in the way of technology,” Houston Airport System director Mario Diaz said.
At Bush Intercontinental Airport, for instance, aircraft with newer, more advanced avionics can take more direct and efficient landing paths. This saves time and fuel.
Pilots without this technology have to contact air traffic control and receive the specific vectors, altitudes and speeds at which they can land. Their approach involves a step-down procedure, such as decreasing from 38,000 feet to 34,000 feet and then maybe turning left and dropping to 33,000 feet.
Trained pilots aboard aircraft with the newer technology, however, can essentially be cleared for landing some 60 miles from Bush Intercontinental. The flight management system onboard the aircraft takes over and lands the plane, using curved approaches and staying as close to the runway as possible. Bush Intercontinental has special ground technology to assist the planes.
Inside airport terminals, Diaz said, facial recognition technology is becoming increasingly common. Bush Intercontinental recently received a flight from New Zealand that was “completely cleared using facial recognition.”
“Eventually facial recognition will be, really, your passport,” Diaz said.
But there are drawbacks to technology. Similar to big-box stores, airport retail is being hurt by ecommerce, Diaz said. Travelers used to rely on airports to purchase last-minute travel needs. But now they can make an online purchase Monday and receive that package before their Thursday morning flight.
And if travelers see something they like in the airport, they can buy it online rather than cram it into already stuffed luggage.
Food and drink sales, on the other hand, remain strong.
“You’re still buying hamburgers and hot dogs and things like that at the airport,” Diaz said, “so that’s a source of growth.”
Ultimately, his near and longterm focus is to improve the customer experience and to elevate Bush Intercontinental and Hobby to the coveted 5-star Skytrax rating. Both airports have a 4-star rating.
Richter acknowledged it will be “a daunting task.”
“It will require a lot of input from a lot of really amazing organizations to make that happen over a long period of time,” he said. “And we can be long-term players if we have a vested interest in this as an industry.”