“7 Effective Ways To Increase Your Airports Non-Aero Revenue”
Over the years, airports business has seen a marked increase in focus on non-aeronautical revenues due to pressure on aeronautical revenues. Enabling increase in non-aero revenue requires adoption of the right technologies and tools.
- Right Flight-Gate Allocation: Analysis to recommend right allocation of flights to gates so that the stores near the respective gates get maximum footfalls from their target audience
- Minimize Passenger Queuing Time: Video analytics to optimize service availability for security check, immigration etc. to minimize passenger queuing time, thereby maximizing passenger time for shopping at stores
- Customer Profiling: Passenger profiling using survey data enabling stores to position the right product mix
- Optimize Car Park Occupancy: Dynamic pricing model for airport car parks to optimize occupancy and maximize revenue
- Maximize Store Availability: Analyzing passenger footfall versus store open timings to adjust store working hours and thereby maximize its availability
- Peer Airport Benchmarking: Analysis of retail sales performance compared to peer airports, to benchmark and improve
- Contract Renewal & Negotiation: Assessment of store performance based on metrics like sales/PAX, sales / sqm to help decide whether to renew the contract or not. Store performance analysis also provides inputs to airport authorities to negotiate store rentals and other contractual terms.
Get In Touch
Fill the form below to know more about Non-aero Revenue features
Future Outlook and Changing Market Needs
- Traffic growth is driven by low cost carriers putting pressure on Aero revenue.
- Most Airports offer discounts to attract, retain and grow air traffic.
- Airports’ commercial revenue are also under threat. Sales/Pax reduced by 5% comparing last year.
- The combination of less affluent but ore frequent travellers
- Endless online retail & advertising competition
- Restrictive airline cabin – bag policies
- Shared urban mobility are all combining to dilute these revenue
- Airports have relied on ever increasing commercial revenue to offer airlines discounts and fill 4bn gap left by these changes
Growing commercial revenue is clearly challenging Airport’s business model. Along with the wider impact of the mega digital platforms.