Under the Influence with Terry O'Reilly - S9E10 - Come Fly With Me: Airports Are Now Brands

Episode Date: March 5, 2020

This week, we explore how airports are now becoming brands. You may not know it, but airports compete against each other for business. That intense rivalry has led to the complete transformation of airports - they now have movie theatres, skating rinks, rooftop pools and top retail stores. These days, airports are destinations unto themselves. Hosted on Acast. See acast.com/privacy for more information.

Hi, it's Terry O'Reilly. As you may know, we've been producing a lot of bonus episodes while under the influences on hiatus. They're called the Beatleology Interviews, where I talk to people who knew the Beatles, work with them, love them, and the authors who write about them. Well, the Beatleology Interviews have become a hit, so we are spinning it out to be a standalone podcast series. You've already heard conversations with people like actors Mark Hamill, Malcolm McDowell, and Beatles confidant Astrid Kershaw. But coming up, I talk to May Pang, who dated John Lennon in the mid-70s. I talk to double fantasy guitarist Earl Slick, Apple Records creative director John Kosh. I'll be talking to Jan Hayworth,

who designed the Sgt. Pepper album cover. Very cool. And I'll talk to singer Dion, who is one of only five people still alive who were on the Sgt. Pepper cover. And two of those people were Beatles. The stories they tell are amazing. So thank you for making this series such a success. And please, do me a favor, follow the Beatleology interviews on your podcast app. You don't even have to be a huge Beatles fan, you just have to love storytelling.

Subscribe now, and don't miss a single beat. This is an apostrophe podcast production. Your teeth look whiter than no nose You're not you when you're hungry You're a good hand with all teeth You're under the influence with Terry O'Reilly. Have you noticed this trend recently? People are beginning to refer to airports not by their names, but by their identification codes. As in, I'm flying to YYC tomorrow, meaning I'm flying to the Calgary

International Airport. Rush once put out a song titled YYZ in tribute to the band's hometown. Toronto's Pearson Airport transmits the YYZ identifier code to pilots on approach, and Rush used that Morse code throughout the song. As Geddy Lee once said during Rush's touring years, it's always a happy day when YYZ appears on our luggage tags. Almost every airport in the world has a three-letter identifier code, as determined by the International Air Transport Association. In the early days of aviation, airlines simply copied a two-letter system

employed by the National Weather Service to identify cities with weather stations. But as airline travel grew exponentially, towns without weather stations needed an identifier. A three-letter system was then developed because three letters allowed for over 17,500 combinations. Most Canadian airports, for example, begin with the letter Y, and most contain a letter pertaining to the city name, like YOW for Ottawa, YYC for Calgary, and YVR for Vancouver. However, Pearson Airport in Toronto is not YTO.

That's because the city has three airports. So YTO is used as a city designation, but Pearson is YYZ, Billy Bishop Island Airport is YTZ, and Buttonville Airport is YKZ. While some airport identification codes are puzzling, some are hilarious. You could fly out of Bum, for example, as BUM is the identification code for Butler Memorial Airport in Butler, Missouri.

Or you could land in P, P-E-E, being the Perm International Airport in Russia. You could brace yourself for a landing in EEC, as E-E-K is the airport that serves EEC Alaska. And try not to be scared in B Boo, B-O-O, when you visit the Budo Airport in Norway. Don't gag, G-A-G, when it's wheels down in Gage, Oklahoma. But feel free to yell out O-M-G,

the identifier code for the Omega Airport when touching down in Namibia, Africa. The Dickinson Theatre Roosevelt Regional Airport in North Dakota has airport code D-I-K-L-O-L. And by the way, L-O-L is the airport code for Lovelock, Nevada. And the Sioux Gateway Airport in Iowa proudly sucks. Identifier code? S-U-X. Slogan? Fly sucks.

Lastly, it's up to you, but you always have the option to land in poo. POO is the identification code for the Pazos de Caldas airport in Brazil. The word airport is also code for the word brand. Believe it or not, airports compete heavily for airlines, passengers and retail sales.

As a result, airports have redesigned themselves to become highly competitive brands. Terminals are no longer grey-drab industrial buildings. They are vibrant, colorful, and unique. And with airline travel set to double in a few short years, airports are employing

some bold, non-stop marketing ideas. You're under the influence. Most of us walk through airports like we're on a mission. Checking luggage, impatiently inching through security lines, finding the gate, waiting for the crunch of the boarding call, hoping everything is on time.

But have you stopped to actually look at airports lately? They are undergoing big changes. And it may surprise you to know that airports compete for business with other airports. Yes, airports are highly competitive brands. They compete for passengers, hoping travelers will choose their airport as a hub or a connection. The more passengers that pass through its gates,

the more revenue an airport makes. More flights mean more income, more retail sales, more duty-free revenue, and more parking fees, etc. Airports compete to attract airlines because airlines bring passengers along with lucrative landing and departure fees. Airlines choose which airports to use as hubs and connecting flights. Airports compete to attract and retain the best retailers and restaurants. In the new world of airport design, the highest-rated airports have the best retail stores, spas, and restaurants.

Happy travelers attract airlines. And airports compete for big cargo contracts and warehouse fees. So, if you don't think airports are competitive brands, think again. The airports of today are many cities. Toronto's Pearson Airport, for example, facilitates over 50,000 jobs. It is the second biggest employment zone in Canada. Pearson hosted 45 million passengers and over 430,000 flights last year. It contributed over $42 billion in economic activity or 6.3% of Ontario's GDP. Over 63,000 work at the Hartsfield-Jackson Atlanta International Airport. It handled close to 900,000 flights last year.

It features 300 retailers and restaurants, and the airport generates $34 billion in economic impact for Metro Atlanta. It is one of the busiest airports in the world. Over 76,000 people work at Heathrow London. It handles 1,300 flights every day and 80 million passengers every year. With that much revenue at stake, it's no wonder airports have strategically redesigned themselves completely. The new era of airport design began after 9-11. Suddenly, we all found ourselves spending more downtime at the airport than ever before. Prior to 9-11, you could catch a flight even if you got there at the last minute. Running to the gate was an airport cliché.

But after 9-11 and the shoe bomber, airport security became a major issue. Passengers now have to check in 90 minutes before domestic flights and two hours ahead of departure time when flying internationally. That meant, for the first time in aviation history, we are now spending most of our time on the post-security side of the terminal. With that seismic change, airports needed to be redesigned. You may have noticed most airports have undergone enormous transformation in the last few years. What were once grey, industrial, soulless buildings are now interesting architectural spaces with lots to offer. As mentioned earlier, most major airports are now bustling retail centers.

They boast hundreds of retail stores and restaurants. They offer spas and sleeping pods. Pearson has a gigantic fitness gym on the main floor. In case you think retail space is incidental to airports, let's talk non-aeronautical sales, meaning revenue generated from things other than airline travel itself. Sales from retail, duty-free, and food and beverage accounts for over 54% of an airport's revenues. With that much potential revenue, airports are redesigning to become destinations themselves. The remarkable Changi Airport in Singapore,

for example, features a 40-meter or 130-foot-high indoor waterfall flanked by tropical plants and a forest of over 2,000 trees. It also has a butterfly garden, a rooftop pool, and you can walk above it all on an 80-foot high sky net. Travelers have voted Changi the best airport in the world for seven years in a row. Incheon International Airport in South Korea has a golf course and a skating rink. The Munich Airport has a cinema, a mini golf course, and its own brewery. The Kansai airport in Osaka, Japan offers a dentist office and a pet hotel. The Amsterdam airport has a library. Clearly, creating a unique experience is a critical aspect of branding an airport. As a frequent flyer, I can say that Vancouver International Airport, YVR, is one of my favorite stops.

Designed by Stantec, a company that has overseen projects at over 200 airports worldwide, the Vancouver Airport celebrates the unique characteristics of British Columbia. It brings together the themes of nature, Aboriginal history, and contemporary BC culture. I find YVR to be one of the most calming airports in my travels. And there isn't much about air travel that is particularly calming these days. But the Vancouver Airport is one of the quietest major terminals in North America. A key to that hush is the fact a much higher ratio of the airport is covered in carpets. Art is a big part of YVR. A 10,000-pound jade canoe sculpture by the late

artist Bill Reed is a central focal point where travelers often meet at the airport. It is one of the most photographed images in B.C. A painting of British Columbia's forest, mountains, and sea by the Group of Seven's Lauren Harris was selected by YVR as the color palette for the airport's interior. Once you're aware of that, the blues, greens and grays are kind of magical. Many of the wayfaring markers at the airport are anchored by art, making it

easier for travelers to find their way. Just turn left at the Jade Canoe. Every time I fly into Vancouver, I marvel at the number of logs floating down the river you see out the window on the approach. And if you look up at the ceiling in YVR down the river you see out the window on the approach. And if you look up at the ceiling in YVR, you'll notice the lighting looks like logs floating down a lazy river.

All this wonderful design work is created to enhance the passenger experience. It's meant to be a competitive advantage. Vancouver International Airport is branding itself as not only the front door of British Columbia, but a gateway to the Asia-Pacific region. It competes against other airports in the U.S. for this prized position, including the nearby Seattle Airport. This is a critically important business strategy because air travel to and from the Asia-Pacific region is about to soar. An astounding 3.8 billion people flew around the world last year. But here's an interesting statistic.

Only 20% of the world's population has ever stepped foot on a plane. And here's the staggering stat. It is predicted that number will balloon to 8.2 billion by 2037, more than double the current level of air travelers. Most of that increase will come from the Asia-Pacific region. China is set to overtake the U.S. as the largest aviation market in the world by 2024. India will displace the U.K. as the third largest market by 2025.

The upsurge in middle-class households in those countries is pulling people into air travel. As a matter of fact, the 10 busiest routes in the world are in the Asia-Pacific region. To put this growth into perspective, nearly 100 million new air travelers will enter the market annually. By 2035, global commercial fleets will need 23,000 more aircraft and, hopefully, renewable aviation fuel. Over 615,000 more pilots will be required, including 680,000 new technicians and over 800,000 more flight attendants. The Asia-Pacific will need four out of every ten of those airplanes.

With that much growth on the horizon, airport branding has never been more important. Just ask Butch O'Hare. And we'll be right back. New year, new me. Season is here and honestly, we're already over it. Enter Felix, the healthcare company helping Canadians take a different approach to weight loss this year. Weight loss is more than just diet and exercise. It can be about tackling genetics, hormones, metabolism.

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why not dip into our archives, available wherever you download your pods. Go to terryoreilly.ca for a master episode list. Hands up if you know who Butch O'Hare is. Hmm, not many hands. For your information, he was the first U.S. naval recipient of the Medal of Honor in World War II. But you may know him better as the man O'Hare Airport in Chicago is named after. One of the most important aspects of branding an airport is the choice of name. There are several strategies when it comes to naming an airport.

The first is to link the airport to a historical person of interest, like O'Hare, or Pearson International Airport, named after Canadian Prime Minister Lester B. Pearson, or Hartsfield-Jackson Airport in Atlanta, named after two previous mayors, or Rome's Leonardo da Vinci Airport. A different strategy is to name the airport after its geographical location, in order to own that city in travelers' minds. For example, if you are considering visiting Australia, you might be drawn to the Sydney

Airport. Identifier code? SYD. SID. Simple, memorable, and made for the Instagram age. Or, if you're flying to Hong Kong, the Hong Kong International Airport makes sense. Or if you're headed to the Calgary Stampede, you would probably think Calgary International Airport. Geographical names are lucrative branding tools. There is a term in the airport business known as passenger leakage. No, it's not something that happens during air turbulence. It refers to the loss of an airport's core market to another nearby airport. For example, Pearson might experience passenger leakage to the Billy Bishop Island Airport in downtown Toronto. LaGuardia would suffer passenger leakage to Newark Airport in New Jersey,

since both are about the same distance from lower Manhattan. And the Buffalo-Niagara Airport might suffer passenger leakage to the Niagara Falls New York Airport, just 30 minutes away. So, to take advantage of passenger leakage, some airports name themselves after geographical centers, even though they are sometimes nowhere near those geographical centers in order to entice travelers. For example, the Paris-Batry Airport is actually 104 miles or 168 kilometers from the center of Paris. It takes 2 hours and 3 minutes to get there by car.

Munich West Airport is about 70 miles or 112 kilometers from Munich. And if you think the London Oxford Airport sounds like a handy option to busy Heathrow, you're in for a long cab ride. It is 62 miles or 100 kilometers from central London. Another way for an airport to stand out from the pack is to name the terminal after a celebrity, especially if that celebrity is linked to the story the destination wants to tell in its marketing. The Liverpool Airport, for example, has been renamed the John Lennon International Airport to capitalize on beetle-related tourism.

The Louisville, Kentucky Airport has been recently renamed the Louisville, Kentucky Airport. The Louisville, Kentucky airport has been recently renamed the Louisville Muhammad Ali International Airport. If you're flying to Sonoma County, you will land at the Charles M. Schultz Airport, named after the famous Peanuts cartoonist. Snoopy is part of the logo. New Orleans will welcome you to the Louis Armstrong International Airport because music is a big part of that city's brand. And Oklahoma has the Will Rogers Airport, named after the famous old-time stage and movie actor, who actually died in a plane crash in 1935. Then there are airports that sport nicknames. The Bob Hope Airport in California

was named after the famous entertainer when he passed away in 2003. But since then, the airport has decided to create a nickname, the Hollywood Burbank Airport. That nickname was chosen as a branding strategy. By associating itself with Hollywood and Burbank, where many top entertainment companies are headquartered,

the airport wants to let flyers know that LAX isn't their only option when flying to Tinseltown. The Fodor Travel Awards chose the Hollywood-Burbank Airport as the best U.S. airport in 2019, citing its straightforward, shenanigan-free experience. Of course, when it comes to marketing airports, shenanigans can come in handy. Bet MGM is an official sports betting partner of the National Hockey League

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Some feel evidence of aliens has been discovered in these unexplained underground bunkers. Blurry videos of underground lizard people have appeared on conspiracy websites. There is a dedication plaque at the airport's south entrance dated 1994 that apparently contains a time capsule with a Freemason symbol, leading to a theory the airport has been controlled by Freemasons since its opening. There are gargoyle sculptures in the baggage claim areas,

and there is a 32-foot statue of a giant, slightly demonic-looking blue horse rearing on its hind legs outside the airport. The horse has glowing blood-red eyes, which has led to the nickname, Blucifer. Now, to be fair, some of this is true. Yes, there are sculptures of gargoyles in the baggage claim areas. They are part of the airport's

extensive art collection. Yes, there are a pair of 7,000-foot-long underground tunnels beneath DEN. They are mostly used to ferry luggage to various parts of the airport, and they house the electrical and plumbing infrastructure. Over 1,000 people work underground there daily. And yes, there is a giant statue of a very intense red-eyed horse outside of the airport. It was meant to symbolize the wild spirit of the old American West. Many believe the sculpture is cursed.

That might be because a 9,000-pound portion of the sculpture broke loose during its creation, tragically killing the sculptor. So there's that. But the airport made a daring decision. It chose to embrace the conspiracy theories in its marketing. The Denver airport stopped trying to fight all the conspiracy theories

and instead chose to have some fun with them. For starters, the airport created an on-site exhibition. The Conspiracy Theories Uncovered exhibit contained videos, artwork, and photos

explaining the strange alien markings on its tunnels, the Freemason logo on the time capsule, a supposed alien skull, and a collection of various news stories about the most pervasive theories.

When D.E.N. was undergoing a recent expansion, amusing signs were put up around the construction walls. One said, construction or cover-up? Another said, what's happening behind this wall? A. Gargoyle breeding grounds, B. A top-secret Freemason meeting, Another said, Still another read, Coming soon, streamlined security or a secret portal to the underworld. All of it was anchored with a website Fox Mulder would be proud of, denfiles.com.

The clever marketing campaign generated a lot of press attention. It engaged travelers, created endless word of mouth, and most of all, it acknowledged that conspiracy theories

are part of the Denver Airport's brand. All it took was a little shenanigans. When you decide on air travel, you have endless options. You can fly to London and never step foot in Heathrow. You can get to Manhattan quickly

by flying into New Jersey. You can get to Manhattan quickly by flying into New Jersey. You can fly to Toronto and land on an island. It's a hugely competitive category. That's why airports are becoming big marketers. In a recent IPSO survey of BC's 20 most loved brands, number three on the list was the Vancouver International Airport. Not a single airport would have made that list

20 years ago. With soaring global airline growth, airports will undergo more design change in the next 10 years than they have in the previous 30.

Airports are turning themselves into destinations. I just read an article recently with the headline, quote, my 27-hour vacation in Singapore's Changi Airport. These futuristic aerotropolises are becoming sumptuous pleasure domes, and non-aeronautical revenue has surpassed aeronautical revenue. It probably won't be too long before we see naming rights sold to high-profile brands

as we've seen with stadiums and theaters, which means you just might be flying into an IKEA International Airport in the not-too-distant future when you're under the influence. I'm Terry O'Reilly.

This episode was recorded in the Terrastream Mobile Recording Studio. Producer, Debbie O'Reilly. Sound Engineer, Keith Ullman. Theme music by Ari Posner and Ian Lefevre. If you liked this episode, you might also enjoy Passport Revoked, When Brands Fail Internationally, Season 6, Episode 3. You'll find it in our archives wherever you download your podcasts. Follow me on Twitter and Instagram at Terry O Influence.

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