LONDON — The “fasten seat belts” sign might soon be switched off for travel retail in some of the British airports most affected by the alleged terrorist plot, which came to light two weeks ago.
“We’re very close to being back to normal,” said Colin Hargrave, managing director of BAA U.K. Airports Retail. British Airports Authority owns seven U.K. airports, including London’s Heathrow, Gatwick and Stansted, as well as airport retail chain World Duty Free. “The first day [following the revelation of the alleged plot to blow up planes flying from the U.K. to the U.S.] was the worst. Obviously, there was a lot of confusion about what could and couldn’t be taken on board, but the situation came back to normal day by day.”
Hargrave said it’s too early to quantify the impact of the scare and ensuing security restrictions on business, but said the effects are being felt differently from airport to airport. Current security procedures stipulate that liquids, such as fragrances, cosmetics and liquor purchased in travel retail stores, are accepted on board all flights, except for those bound for the U.S.
All passengers, however, are required to pack liquid-based products not purchased in post-security gate stores into their checked luggage.
“After two weeks people are understanding that,” Hargrave said, adding in the days following the announcement of the alert, airport retailers saw an upswing in sales of bags in pre-security departure areas as passengers struggled to check in belongings they’d planned to carry on board.
And since many passengers are arriving much earlier at airports in anticipation of long lines at check-in and security, some are spending even more time in departure lounges, which could be a boon to travel retail stores.
In some airports, however, particularly those handling low-cost carriers, which, in general, only open check-in desks two hours prior to departure, snaking lines have become the norm. While passengers are arriving earlier, rather than spending more time in duty free stores, they’re caught in crowded departure areas.
“There’s an inconsistent message being sent out by airline companies,” said Hargrave.
Alleviating the strain of air travel’s new reality will be key to ensuring passengers want to shop in airports going forward, he added. “There are different points of stress,” he said. “Getting to the airport on time, checking in, stress at security and getting to your gate — some of the walks are very long. We have to get people through the process in the best state of mind possible.”
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Among measures BAA has taken on that front is to launch an informational advertising campaign that spells out to passengers what they can and can’t take on board flights.
BAA is also working on initiatives to make duty free shopping a possibility for U.S.-bound travelers. In Heathrow’s Terminal Three, the company has been testing a program to deliver duty free goods to Virgin Atlantic planes.
“It’s very labor-intensive and it’s not an efficient way of allowing products to be taken with you, though it does allow us currently to offer duty free,” said Hargrave.
In addition, other methods are being researched. “We’re looking into opportunities like sealed bags so that when you buy liquor, for example, from World Duty Free, it can be put into a sealed bag with its receipt so it can pass the security check and the passenger can take it on board,” he said, adding the company is also talking to airport authorities about possibly offering duty free goods in arrivals areas.
“The ultimate solution would be to restore the situation to what it was before,” he said. Meanwhile, he suggested airport shops should adopt clear plastic bags in order to make security checks run more smoothly. “It’s a simple small thing,” he said.
While some airlines have been vocal about their dissatisfaction with BAA’s handling of the alleged terrorist threat, Hargrave said airport retailers have been supportive throughout the period of disruption.
“Most concession agreements are for three to seven years and there are ups and downs at every airport,” he said. “For the sake of a couple of weeks worth of disappointing trading [we don’t feel there’ll be major issues]. As the concession agreements are based on percentage turnover, both BAA and the concession partners take a hit. It’s too early to say what the impact will be on a full year. Concession partners understand that overall we have a very good record in terms of passenger growth and business development over the years.”
While Hargrave said the threat of international terrorism is now something the world has to live with, he’s confident air travel, and with it travel retail, will spring back into action once the initial shock of the alleged threat recedes. Indeed, the industry has set precedent since travel retail shopping often seems to resemble a retail rubber ball — bouncing back after terrorist strikes in New York, London and Madrid; outbreaks of SARS and avian flu, as well as air traffic accidents.
“Every incident like this is likely to get people to question if they want and need to travel,” he said. “If it’s harder to travel they’ll question it more, but it’s clear that worldwide demand is going to continue to grow. I don’t see this as a major blip.”