Interview: Could VR gaming become the next big thing in airport commercial concessions?

UK. The global virtual reality (VR) gaming market is projected to grow from US$7.92 billion in 2021 to US$53.44 billion in 2028, with a CAGR of +31.4% across that period, according to research by Fortune Business Insights. 

These are big numbers that attracted the attention of Graeme Stewart, Retail Director of UK firm Luggage-Point, which runs a variety of retail and services concessions across 16 international airports. He sees great potential for an entirely new airport experience, based around the exciting world of VR gaming. Accordingly, he has just established Gaming Point, which aims to introduce VR ‘escape rooms’ as concessions at airports across the world. 

In an exclusive interview about the launch of this experiential airport concept, Stewart talks to The Moodie Davitt Report’s Senior Business Editor Mark Lane. He spells out a comprehensive package that requires very small space commitment from airports, but which he insists will deliver a lucrative new revenue stream.

Gaming Point as a turning point: An artist’s impression of how the new concession will look in a travel setting 

Luggage-Point Retail Director and frequent flyer Graeme Stewart was waiting for a flight out of a major international airport last year. During his airside dwell time, he reflected that despite much talk amid the COVID-19 pandemic of introducing new experiential concepts to travel hubs, he had so far seen little evidence of anything new. “It is still just eat, drink and shop, and nothing else,” he mused. “We need new experiences in airports, and I can see none here.”

Graeme Stewart says it is time for airports to offer customers more than eating, drinking and shopping

Even before he had boarded his plane, the seeds of an idea were planted which have since sprouted into an ambitious international business plan. That was to introduce the concept of virtual reality (VR) gaming to the airport space worldwide  under a new concession product arm called Gaming Point. The name ties in with two Stewart’s existing airport brands, Luggage-Point – which operates six stores in UK airports – and Enviro-Point.

“All of the advances in 5G technology, pioneering gaming content, and cloud-based gaming technology are among the important driving forces of the VR gaming market,” says Stewart. “VR is the most exciting development in the location-based entertainment industry for years – people want it, and you can provide the best version at an affordable cost.”

Having studied the enormity of the VR gaming market and its prospects globally, Stewart’s research identified an international company which has become a leader in the VR gaming retail space.

Several phone calls later he had found a willing partner – which has established VR gaming retail operations across Europe, the US, Canada, the Middle East and Australia – intrigued by the expansion possibilities of the airport space. A deal has been tied up for the leasing of software behind a wide variety of immersive VR games, backed up by 24-hour technical support.

One of the animated environments available via Gaming Point’s VR gaming software partner in what is set to become the first such experience inside an airport

“This is a great company, a real leader in what it does,” says Stewart, who is unable to name his partner at this stage for confidentiality reasons. “They have developed some of the most exciting VR games in the world, catering for all the demographics you see in airports, from child age upwards. Children may require supervision, but there’s no upper age limit or special experience required for these intuitive experiences.”

“We’re here to make VR work for airports. We have covered all bases for build, software, hardware, operations and staffing. And for the game players we will be giving rich social gaming experiences through exhilarating and challenging gameplay, breath-taking graphics, and larger-than-life environments” – Graeme Stewart, Retail Director of Luggage-Point

Game sessions last between 30 and 45 minutes, ideal for airside dwell time, “not too long to make passengers miss flights, but long enough to provide a new experience at the airport”.  Stewart says the concessions can be equally effective both airside and landside.

The immersive VR ‘escape room’ environments covered by the suite of eight games that will be available in participating airports through Gaming Point include space stations, pirate ships, dragon towers and mansions, just to give a flavour. Stewart’s agreement with his partner will see new games added to the portfolio each year to refresh the experience.

Stewart has now further expanded his idea into a bespoke airport concession. The physical VR space he has developed specifically for airports involves a small room of 4 x 5.5 metres, big enough to house up to five game players per session.

His concession proposal suggests two rooms of this size, side by side, with a small counter desk out front. Each room is equipped with the screens, headsets and so on needed for play. Stewart has already sourced the materials for the space build-out and contractors to install the VR rooms in client airports.

Rooms will be managed by a single member of staff (employed by Gaming Point), to be known as the ‘gamesmaster’. As well as giving a warm welcome and instructions on how to play, use of the equipment and safety, the employee is also responsible for disinfecting the gaming room(s) after each set of players leaves.

A mysterious house will throw its doors open to gamers entering the virtual reality world of Gaming Point

“We’re here to make VR work for airports,” says Stewart. “We have covered all bases for build, software, hardware, operations and staffing. And for the game players we will be giving rich social gaming experiences through exhilarating and challenging gameplay, breath-taking graphics, and larger-than-life environments.”

So how much is all this going to cost an airport and what are the expected contract durations?

“Contracts will be for a minimum of one year,” replies Stewart, who claims to already be in discussions with more than half a dozen major airports to introduce his concept. “But what we are preferably looking at is a minimum of three-year contract duration, in line with what we see with the more established airport concessions.”

He continues: “There is no upfront cost to the airport other than providing the modest amount of space required. We do the build-out, supply the equipment and software, and a dedicated member of staff. The business model is a profit-sharing one with revenue from every customer split between Gaming Point and the airport.”

The Gaming Point area will feature QR codes on the floor and the outside display where interested passengers can preview the VR games on their mobile devices

Have airports really got the space for this new activity? “Yes, certainly most of them have,” says Stewart. “I see many installations and activities in airport public areas which are generating very little or no revenue. Committing to the compact size of area we recommend will provide a great square metre return in comparison to many other current space uses we see.”

Where are the customers going to come from? Will there be a heavy reliance on walk-in trade for an as yet unproven airport activity? “There would be a certain amount of passing trade obviously,” replies Stewart. “But I think with a concept like this we need to move away from the historic hope that the passengers come by and see it and think ‘Oh, that’s a good idea’.

“There will be a big digital element to how we promote this, with a website and a strong social media presence. There is scope for a lot of social media marketing to get it in front of the right demographic of player and airport user.”

Expanding on this theme, Stewart says he is in discussions with digital partners with close links to airlines to promote the in-airport VR gaming experience close to the point that the traveller books a flight ticket. “There could be a pop-up advert which says ‘Get five pounds off your booking at Istanbul Airport’, for example. This would prompt potential customers to click through to the website and pre-book.”

Two more examples of the VR gaming environments which will be available in airports through Gaming Point 

He adds: “With the social media marketing analysis you can really drill down on the demographic of who to target, including nationalities and age groups and many other factors. As customers book and provide their details, we’re hoping that we can capture that and then provide email marketing to them further down the line to make further bookings ahead of trips.”

We are already seeing traditional games console lounges finding their way into airports in the US through the likes of Gameway at Dallas Fort Worth International and Los Angeles International airports (as reported), with more scheduled to follow.

Has Stewart been beaten to the punch? “That just looks like simple gaming to me,” he responds. “I’m sure there is a demand for that but I wouldn’t really describe it as experiential. Our concept immerses the user into the experience with an exciting new level of VR technology. I want to be the first in the world to introduce VR gaming to airports; I don’t think you can find that in any airport worldwide.”

Stewart certainly won’t fail for lack of determination. As far as he’s concerned it’s game on. And virtual, he insists, is about to become reality.

To find out more about how VR gaming could generate revenue in your airport, email Graeme Stewart at Graeme@luggage-point.co.uk

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