Passenger satisfaction.  Profit generation.  Quality of operations.  Job creation.
Economic opportunity.  Infrastructure investment. 

No matter how you look at it, the developer model for airport concessions is far superior to the outdated master concessionaire model. 

Here is why the developer model is the only viable choice.

ONE WORD:  Competition

With a master concessionaire, a single operator owns and operates the concessions.  Such a monopoly provides no incentive for innovation or quality.  The goal is to limit choices, streamline operations to cut costs and charge as high a price as possible. 

Ever seen a shopping mall operate that way?  It wouldn’t survive if it did. 

BAA USA is the pioneer of the AIRMALL® at airports in Pittsburgh, Boston, Baltimore and Cleveland.  With our model, we operate airport concessions much like a shopping mall, and we are not restricted by typical airport procurement processes.  We lease available space at the right price to high-quality local and national brands, ones that offer value and a wide variety of choices.  This creates the optimal retail mix.  Such a configuration requires merchants to compete in terms of quality and price if they want to attract and retain the passengers’ business. 

The result: an expansion of the airport’s bottom line.

“Regular Mall Prices…Guaranteed”

Why should people pay more for something simply because they’re at the airport? 

Rather than exploiting the airline passenger at the airport, the BAA model is founded on the principle of “Regular Mall Prices…Guaranteed.”  Airline passengers will pay no more for goods and services at the airport than they would pay at a comparable location near the airport. 

Something else happens, too.  “Regular Mall Prices” result in dramatically increased sales.  Travelers understand that they’re being treated fairly.  This often persuades them to spend a bit more money at the airport when they’re traveling.

Strategic Investment and Passenger Engagement

The master concessionaire has no incentive to invest in the airport’s infrastructure.  Master concessionaires are focused on minimizing their investment and maximizing their return. 

The developer seeks to build out the entire concessions infrastructure, creating a seamless retail environment that would normally be found in a shopping mall.  The goal is to create the right amount of space in the right places.  Such investment takes the traveler’s experience into account, engaging the passenger in ways not seen before on airport property. 

BAA USA has invested more than $60 million in airport retail infrastructure at its airports.  The results of that investment – from improved utilities to enhanced common areas – will be felt long after BAA’s contract expires. 

Sharing the Risk

Developers do not take a piece of a finite revenue pie.  They grow the revenue pie.

When developers forge a contract with an airport, that contract usually features minimum rental guarantees, which eliminates any risk for the airport.  Developers are only paid from the additional revenues they generate.  Since the airport receives the majority of the concession revenues, there is a common motivation by both parties to create high-quality, revenue-generating concessions that give passengers what they want. 

More Opportunities, More Jobs

With the developer model, variety is the key.  More choice for the passenger means more economic opportunity for business owners and job-seekers alike.

The master concessionaire favors the two or three national brands that have already forged a partnership with them.  With the developer model, quality, variety and customer preference drive the equation. 

BAA’s AIRMALL® enjoys success because it offers a strategic mix of trusted national brands with high-quality local brands owned and operated by local entrepreneurs.  Because of this, the model enables local business owners, MBE operators and DBE operators to share in the opportunities at the airport. 

The Right Kind of Buzz

Engage the traveling passenger with quality and value, and you create a buzz.

Think about it.  First-time visitors to any city often form their first impressions of that city based on their experience in the airport.  In essence, your airport is the gateway to your city.

BAA’s AIRMALL® puts the passenger first.  It also consistently generates millions of dollars in positive publicity for client airports on everything from cutting-edge developments to high-quality offerings and record-breaking sales.  That kind of buzz is good for the region and for the airport. 

TWO WORDS:  Highest Sales

In its 16-year history, the developer model has achieved industry-changing results, generating the highest per-passenger spend in the airport concessions industry.