Airports have long been more than just transit hubs—they are microcosms of commerce, entertainment, and increasingly, culinary experiences. As the aviation industry continues its steady recovery post-pandemic, airports are paying closer attention to non-aeronautical revenue sources, including food and beverage. In a recent ACI World webinar, industry experts discussed how airports are capitalizing on key trends and technological advancements to grow food and beverage revenues while improving the overall passenger experience.
Airport food and beverage services have evolved significantly over the past few years, and they are now a crucial source of non-aeronautical revenue. According to Slava Cheglatonyev, Director of Economic Policy and Sustainability at ACI World, “Food and beverage is a rockstar of airport non-aeronautical activities." The increasing importance of this segment is supported by industry statistics, showing that non-aeronautical revenue constitutes 40% of total airport income, with food and beverage accounting for a steadily growing share.
Between 2015 and 2019, food and beverage's contribution to non-aeronautical revenue grew from 7.6% to 8.1%. This growth trajectory underscores the importance of food and beverage to airports' financial health. Airports are not just looking at food offerings as transactional experiences but are striving to make them memorable and integral to the overall passenger journey.
Digitalization: The Key to Efficiency and Experience
Technology is rapidly reshaping the food and beverage landscape, with digitalization playing a pivotal role. Stephen Freibrun, Senior Principal of Global Commercial Airport Practice at ICF, said airports are using technology to enhance both revenue and customer experience.
“Passengers want to be in control,” said Freibrun, referring to the growing demand for self-ordering kiosks, AI-powered recommendations, and mobile ordering apps.
Digital ordering systems are becoming the norm, providing convenience to passengers while reducing pressure on human staff. These technologies not only streamline the ordering process but also help increase average transaction sizes. “The average check sizes are 58% higher for web-based orders compared to mobile app orders,” Freibrun noted, emphasizing how digital platforms can drive incremental revenue through upselling. Autonomous checkouts, AI-driven suggestions, and even robotics are being employed to optimize service efficiency.
But the shift to technology is not just about reducing costs or eliminating labor. It’s about reducing the anxiety many travelers feel at airports. By giving passengers the ability to pre-order meals, skip lines, and control their dining experience, airports are helping to alleviate stress, thus encouraging more dwell time and, consequently, more spending.
While technology is essential, Freibrun cautions against completely removing human interaction from the equation. “It’s about finding the right balance between convenience and customer service,” he explained. Self-ordering kiosks may be efficient, but human staff can offer personalized assistance, help resolve issues, and create positive interactions that foster customer loyalty.
This balance between automation and personal touch is crucial, particularly as some passenger demographics may be reluctant to embrace new technologies. Furthermore, technological systems are not infallible. Airports must always account for potential issues like system downtime or user confusion.
Local and Street Food: Sense of Place Matters
An emerging trend in airport food and beverage is the increasing demand for street food and local cuisine. Emmanuel Baah, Deputy General Manager of Estates Planning and Business Development at the Airport Authority of Trinidad and Tobago, said there’s a growing interest in incorporating local food culture into airport dining options. “Airport sense of place is no longer just about visual imagery. It’s about bringing in the local culinary culture,” he explained.
The global rise of street food reflects passengers’ growing desire for authentic and unique dining experiences. “Street vendor revenue is expected to grow by 12.3% throughout 2024,” Baah noted, citing data from Ibis World. Airports are capitalizing on this trend by offering passengers a taste of local culture before they even leave the terminal. From iconic local food brands to street food pop-ups, these offerings enhance the airport’s sense of place and make the food and beverage experience a memorable part of the journey.
This focus on local cuisine also aligns with broader consumer trends toward sustainability and conscious consumption. As more passengers seek out eco-friendly and socially responsible options, airport food and beverage operators must ensure their offerings meet these expectations. “Between 2020 and 2023, there was a 37% growth in food and beverage purchases related to forest protection claims,” Baah added.
The Role of Data and Collaboration
Data has become a critical tool for airports and concessionaires alike. Freibrun emphasized the importance of leveraging granular passenger data to optimize food and beverage operations. Airports have access to a wealth of information, from flight schedules to passenger flows, which can help concessionaires plan their staffing, inventory, and menu offerings more effectively. "Passenger data helps determine the most profitable hours, popular menu items, and even the best locations for pop-up shops," Freibrun explained.
Additionally, collaboration between food and beverage operators and other airport retailers is gaining traction. Integrated retail strategies, where food, beverage, and retail work together to create a cohesive passenger experience, are becoming more common. For instance, many global travel retailers are now capturing the food and beverage market as part of an overall strategy to increase dwell time and customer engagement. According to the survey results presented during the webinar, 79% of airport professionals believe that collaboration between food and beverage and other categories is either “very effective” or “somewhat effective” in driving additional revenue.
Looking Forward: The Future of Airport Food and Beverage
Looking ahead, the airport food and beverage sector is poised for further innovation and growth. The ACI traffic forecast predicts that global passenger traffic will reach 9.5 billion in 2024, surpassing 2019 levels. As airports handle more passengers, the opportunities for food and beverage growth will only increase.
Airports that leverage digitalization, local food trends, and data-driven strategies are well-positioned to enhance both passenger satisfaction and revenue. As Mark Angela, Chief Business Development Officer at SSP, pointed out, “Experiences are driving the growth of food and beverage at airports.” By offering unique, localized dining experiences and incorporating technology to improve efficiency and personalization, airports can create a compelling food and beverage environment that meets the evolving needs of today’s travelers.
