Balancing commercial return with passenger experience - Peter Farmer on the evolution of airports as destinations

I’ve spoken at PT Expo several times before. This year, my presentation, which was titled Balancing Commercial Return with Passenger Experience, focused on the link between the virtual and the physical within airport environments. The central premise is that, while airports need to up their game in the virtual world to excite passengers and build relationships, they also have to match that experience in the physical world or risk breaking the bond of trust. 

For some time, we’ve been embracing virtual transactions as a reality, exploring new channels such as click and collect. But this has been to make up for any reduction in physical sales. Now, it’s becoming clear that the two are interlinked and not mutually exclusive. Indeed, we’re understanding a more subtle and intelligent link between the virtual and the physical. 

All of us, but Gen Zs in particular, are re-engaging with the physical world. We’re looking for a physical experience, wanting to touch material things. Authenticity is key. Research shows that 61% of shoppers would rather engage with brands that are also available in physical retail environments. And 82% of smartphone shoppers use the ​‘Near Me’ app, looking to follow up their virtual searches with an instore experience. Crucially, to ​‘seal the deal’, the physical interaction has to reflect the ambience and fun promised on the virtual platform.

Of course, commercial income is still a key part of the overall airport business case. Operators who don’t understand the social, economic and commercial psychology of their customers, or who don’t balance these elements with operational parameters, will struggle to succeed. Equally, operators need to improve their virtual platforms, which need to be less functional and more aspirational, connecting beyond the actual journey and reflecting their audience’s core values. And once engaged in the physical environment, the human interaction and offer must match the virtual promise – otherwise the trust is broken, loyalty is lost and the transaction is jeopardised. If a passenger has bought into a dynamic, authentic and sustainable ethos online, the physical airport experience has to meet those expectations – it has to create a destination in its own right. 

So, it’s about building the conversation through initial virtual engagement, then honouring those commitments physically. In this way, we can address one of the key challenges for transport environments – which is how to create a sense of place and community among a transitory consumer group. 

It was a really great event. Last year’s PT Expo in Paris, which was the first since Covid, was small in scale and, on reflection, maybe a little tentative. This year it felt like we were back with a bang. The mood was upbeat and positive; there was a sense of people reconnecting and the industry coming together again properly. 

I was leading a team from Benoy and our sister companies from the Handley House Group – Pragma, who do a lot of work in airport data analysis, and wayfinding and placemaking specialists Holmes Wood, as well as our own interior design experts. So there were some interesting cross-disciplinary business discussions and introductions. Overall, the event gave me the chance to focus on the sector from an innovation perspective, and re-engaging in that conversation felt really good. 

Across the industry, there’s clearly a renewed focus on commercial return. A lot of businesses in the sector are on a recovery pathway now, and with passengers returning the commercial dimension of airport activity is high on the agenda. In particular, there’s been a lot of talk about secondary landside opportunities around airports and airport cities. 

The shock of the pandemic has highlighted the importance of revenue stream diversification, including existing aspects such as cargo and potential new areas, such as landside attractions. There are also new opportunities arising – for example, from the current lack of hangarage globally due to planes being grounded for so long. So, while there’s an uplift in terminal activity, airports are also looking to support the non-passenger aspects of their business, which will make for a more diverse sector. 

Since the pandemic, resilience has also become key. There seems to be a feeling that whatever future threats emerge – another virus, say, or a terrorist attack or economic crisis – the industry is better equipped to cope practically, although a little more could be done to develop the business model. With the emergency plan armoury now well established, the sector has confidently moved on from the pandemic and is in a much better place. 

Sustainability is front and centre, too. For me personally, sustainability has always been fundamental, and I believe we have to work towards zero-carbon airport infrastructure. Quite rightly, as a result of the pandemic and heightened environmental concerns, this issue has now been raised as a priority. And there’s been a shift in the industry towards the use of PV arrays, biomass, biophilia and sustainable building materials. There has also been an increase in discussions around aviation fuel, with plans to turn smaller airports into biofuel hubs. But in my opinion, the main focus needs to be on meeting expectations for sustainable airport environments. 

I’m really excited by our global spread as a business. With a presence in Asia, Europe, the Middle East and North America, we can carry things from one market to another. There are airport design innovations we can take from APAC to the US, and from Europe to the Middle East, and vice versa. Having that global understanding of influences and trends is really important. 

Above all, I’m keen to continue helping the aviation industry development in the most sustainable way possible. I personally believe that, as a global community, we benefit from spending time and connecting in different countries and cultures. People still want to fly and travel the world. While the aviation industry is working towards more sustainable flight and fuel options, our job as architects is to support these efforts by making sure airport infrastructure is as clean, green, carbon neutral and socially sustainable as possible. It’s something we’re focusing on at Benoy and will continue to prioritise.