Airport Fitouts in Turbulence

Airport retail has undergone a transformation in recent years, shifting from simple post-security concessions to high-concept, brand-forward spaces that shape a passenger’s first and last impression of a city. But while expectations rise, so too do the costs. According to a landmark white paper from The Mercurius Group, fitout costs in Australian and New Zealand airports have reached record highs – and the pressure is being felt across every corner of the supply chain.

A $179 Million Burden – And Climbing

The Mercurius Group’s 2025 Airport Retail Fitout Study is the most comprehensive benchmark of its kind, surveying over 70% of airport retail space across Australia and New Zealand. The findings are eye-opening: average fitout costs across all retail types now sit at $8,900 per square metre, resulting in a collective $179 million spent annually on retail upgrades.

Designing Under Pressure

For interior designers and architects, the airport environment has always presented unique challenges: highly regulated, security-driven, multi-stakeholder spaces with rigid delivery schedules. But today, those pressures have intensified. Selena Atkinson and Kay Nelson of Dovetail Design Group describe how rising material costs, shrinking timelines, and limited access to preferred contractors have forced designers to pivot. Every detail must now be considered through the lens of buildability, budget, and time.

‘Airport fitouts demand flexibility, creativity, and deep industry know-how,’ says Nelson. ‘With tight approvals, short delivery windows, and rising costs, there’s no room for error.’

Key tactics being adopted include:

• Modular detailing to reduce complexity and labour cost
• Pre-selection of finishes based on lead times and ease of installation
• Offshore procurement planning at early design stages.

Shopfitting at Altitude: Overnight Installs and Compliance

For shopfitters, the operational constraints of an airport are unlike any other environment. Security restrictions, induction processes, after-hours work schedules and limited site access mean precision and preparation are non-negotiable.

Jeff Williams, Director at Trivision, describes it as high-stakes delivery work – but deeply rewarding. ‘We’re managing logistics that change hour by hour, but there’s immense pride in bringing these world-class spaces to life.’

Trivision works across everything from custom joinery and digital signage to on-site project management. Their formula: deep collaboration, clear communication, and relentless attention to detail.

Retailers Push Back: The Lease Model No Longer Stacks Up

While designers and builders manage delivery, retailers are confronting a different set of challenges – financial viability. Dominic Cain of SSP notes that essential services like HVAC, electrical upgrades, and plumbing can consume up to 30% of fitout costs, even though they provide no direct value to the customer experience. ‘In one venue, we paid $125,000 just to get power to the unit,’ he says. ‘The infrastructure couldn’t support modern operations, and we had no choice but to pay.’

Operators are calling for change: longer lease terms, flexible contractor selection, and early collaboration with airport RDMs to ensure designs are commercially feasible. Cain adds: ‘Airports want premium venues, but without premium lease terms, the risk is all on us. That model doesn’t work.’

What’s Next? Major Opportunities on the Horizon

Despite the challenges, the fitout pipeline is strong. The Mercurius Group’s Fitout Opportunities Tracker lists more than a dozen airports undergoing or planning major redevelopments. These include: Western Sydney (new terminal), Perth (T3 and T4), Brisbane (International), Melbourne (T2), and regional expansions at Hobart, Newcastle, and Sunshine Coast.

With thousands of square metres of retail space set to be delivered over the next two years, the demand for commercial fitout talent has never been greater. But to deliver this work affordably and sustainably, the industry will need more than talent – it will need better collaboration.

Conclusion: A Sector Ready to Evolve

From unsustainable capital costs to the wasteful churn of defits, airport fitouts are at a crossroads. The message from designers, shopfitters and operators is consistent: the system must change. And now, with the data from this study in hand, there’s an opportunity to lead that change. The call is clear – build smarter, faster, more sustainably. And above all, build together.