USA. Miami International Airport is seeking partners that can deliver the “latest and greatest” commercial concepts from around the world as it plots a big upgrade of its Central Terminal concessions programme. In a related move, the airport company said that Duty Free Americas’ duty free contract will be extended across the airport until 2024, to match the arrangement already in place in the North Terminal.
In an interview with The Moodie Davitt Report, Miami International Airport Assistant Director of Concessions Robert Warren said that the company is embarking on a drive to develop an entirely new concessions programme, initially around its Central Terminal. (The full interview appears in our March Interactive Edition, out in coming days, with bonus hard copy print distribution at the Summit of the Americas next week).
The first phase of the leasing drive will begin with a Request for Qualifications, to be followed later in the year (probably in the Autumn) by a Request for Proposals (RFP). Miami Airport said it would call on concession developers to help create a forward-thinking commercial vision, one that will take the airport into the next decade and beyond.
Warren said: “This will be the biggest change for many years in how we manage retail and other services. We are releasing a worldwide search for a new concessions programme. At first it will cover concourses E, F and G in the Central Terminal.
“We are looking at a developer/master management model. We want one company to take the entire Central Terminal and create a new concession plan for many years ahead.”
He added: “This is an opportunity for someone to repurpose the terminal and introduce their ‘latest and greatest’ in terms of brands, design and the consumer offer. Our goal this year is to get that RFP out.”
The RFP, once called, will probably offer around 60 days’ response time for submissions. A decision on a preferred partner is likely around mid-2019. With time allowed for the presentation of detailed plans, plus construction, major changes to the stores will probably only take place in 2020. The airport company said that it is taking a long-term view, so will likely offer a ten to 15-year contract. It added that it is open to partnerships or joint ventures, where one party manages dining and another handles retail, for example.
Duty free contract
In another key commercial development, Miami Airport is streamlining DFA’s duty free contract. Until now the concession has included varying termination dates depending on location, but the airport plans to bring these in line with the North Terminal deal, which runs to 2024. The entire contract covers 21 stores across 48,003sq ft, with 22,338sq ft (eight shops) in the North Terminal. Duty free occupies six stores in the Central Terminal and a further seven in the South Terminal.
Warren said: “Duty free is an important revenue stream for us and is a strong performer. The contract in the newer Concourse D, North Terminal goes to 2024 and we plan to extend the rest of the airport to match that timing.
“There is one contract with DFA but there were different termination dates due to different past administrative actions and airport construction. It has been decided for consistency and to allow the concessionaire to upgrade the facilities in the Central and South Terminal to have all termination dates be the same in 2024.”
The retailer, which last year opened a Johnnie Walker House with Diageo at the airport, plans to build on its strength in this category.
Warren noted: “In the South Terminal, Concourse J, DFA is going to dedicate around 2,000sq ft to a new spirits store. That will free up opportunities for other brands that are currently not offered. As half our passengers are international any additional space for duty free becomes important.”
He added: “The extension has been approved in concept but the board of commissioners just has to sign off the lease. The whole airport will then be under one duty free contract to 2024.”
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