Airport Concessions Industry KEY TIMELINE OF CHANGE

·        Competition – Thirty years ago, airports would typically award

all of the concessions to one company as a master operator. Today

airport concessions are bid in separate categories and in smaller

packages to foster more competition within the industry.

·        In the 1970’s, the introduction of the federal Disadvantaged

Business Enterprise (DBE) program by Federal Aviation

Administration and the Department of Transportation, required

operators to meet DBE participation goals. This began the entry of

minority-owned firms into airport concessions as joint venture

partners and subtenants.

·        In the 1980’s/1990’s national brands became prominent in

airport food and beverage programs. This raised quality and

service standards and generated higher revenues for operators and

higher rents for airports.

·        In the 2000’s many airports have increased presence of local

or regional brands to create a ‘sense of place’ and to serve as

the gateway to a region.

·        Overall, and at the beginning of the 1990’s, there has been a lot

of consolidation among the larger operators.  In particular, most of

the large concessionaires are now owned by, or are divisions of,

European-based multinationals. Concessions International remains

privately and family-owned in the United States.

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