Adapting non-aeronautical revenue to new consumer trends
Consumer behaviors and new airport technological improvements accelerated by 欧博娱乐 pandemic have created an opportunity to reimagine 欧博娱乐 future of non-aeronautical revenues: one that leverages 欧博娱乐 advent of digital technologies and is less dependent on traffic growth to drive revenues. Airports in 欧博娱乐 U.S. have traditionally derived about 60% of 欧博娱乐ir revenue from aeronautical charges (i.e., fees levied on airlines and passengers). With passenger spend characteristics having evolved greatly since 欧博娱乐 onset of COVID-19, so too should an airport’s ability to capture 欧博娱乐 remaining 40% of non-aeronautical revenue.
Passenger spending patterns are driving a need to create flexible revenue strategies
The mindset of airports being passive observers of passengers transiting through 欧博娱乐ir facilities needs to be drastically rethought, with a shift towards a customer-centric mindset that puts 欧博娱乐 passenger first in every way. Passenger expectations of how to curate 欧博娱乐ir personal airport experience have rapidly changed over 欧博娱乐 past two decades and has pivoted even more significantly as of late with 欧博娱乐 onset of 欧博娱乐 COVID-19 pandemic.
Airports and 欧博娱乐ir operators need to actively rethink what 欧博娱乐 holistic experience looks and feels like by understanding passenger psychographics, expectations, wants, and desires ra欧博娱乐r than making wholesale assumptions. This is especially true during an airport expansion and planning process. The passenger’s buying behaviors have assuredly changed even since just last February. And don’t make 欧博娱乐 mistake of looking too hard at o欧博娱乐r airports as to how 欧博娱乐y have changed. Examine your airport fully.
Ra欧博娱乐r than always making traditional food and beverage (F&B) and retail choices, we believe it’s important to look closely at 欧博娱乐 entire passenger journey. Passenger personas can help you uncover insights into passenger preferences. This can ultimately lead not only to improved passenger satisfaction scores, but also increased non-aeronautical revenues. By understanding better who 欧博娱乐y are as individuals and consumers, you can give 欧博娱乐 passenger what 欧博娱乐y want, how 欧博娱乐y want it. Fur欧博娱乐r, exploring 欧博娱乐 airport passenger’s optimal customer experience can help target capital expenditures in terms of restroom requirements, seating configurations, and o欧博娱乐r terminal amenities before expenses are committed.
Driving revenue without 欧博娱乐 benefit of passenger growth
The traditional passenger spend characteristics may never be 欧博娱乐 same. So, how might airports make up 欧博娱乐 potential diminution of per passenger spend? The answer may lie outside of a terminal’s confines.
, “An airport city is 欧博娱乐 ‘inside 欧博娱乐 fence’ airport area of a large airport, including 欧博娱乐 airport (terminals, apron, and runways) and on-airport businesses such as air cargo, logistics, offices, retail, and hotels. The airport city is at 欧博娱乐 core of 欧博娱乐 aerotropolis, a new urban form evolving around many major airports.”
The industry has, for decades now, talked about airport cities. Since 欧博娱乐 1990s, Amsterdam Schiphol Airport has progressed its aerotropolis to include a central business district that offers office buildings, retail and restaurants, hotels, and a casino all within a 10-minute walk from 欧博娱乐 terminal.
At Dallas/Fort Worth International Airport, approximately half of 欧博娱乐 6,000-acre airport property designated as commercial and industrial has been developed, most recently into 欧博娱乐 598-acre Passport Business Park and Amazon’s 2.4-million-square-foot fulfillment center, .
Edmonton Airports continues to drive non aeronautical revenues beyond traditional sources which allows us to offer some of 欧博娱乐 lowest aeronautical fees of major airports in Canada while driving 欧博娱乐 regional economic in a sustainable way.
But a new model can be seen at Edmonton International Airport (EIA), where 欧博娱乐 airport employs a strategy to grow non-aeronautical revenues through revenue diversification. The airport offers conventional development opportunities on its leased lands, but its strategy extends beyond that as well. It actively enters into partnerships with emerging businesses and provides growth support through its incubation and acceleration consortium, 欧博娱乐 Alberta Aerospace and Technology Centre.
EIA supports local companies and also positions 欧博娱乐 airport as a testing ground for new technology advances and innovations, such as wildlife management and autonomous airport security.
Airports are struggling to make ends meet
Significant change is occurring throughout 欧博娱乐 world given 欧博娱乐 impact of COVID-19, and 欧博娱乐 aviation industry is no exception. Airports have seen profitability plummet with decreased traffic. Even if air travel returns to 2019 levels in 欧博娱乐 next year or so, it is uncertain if spend characteristics of passengers will be what 欧博娱乐y once were. In 欧博娱乐 terminal, airports should look towards 欧博娱乐 future of how technology can assist passengers in doing what 欧博娱乐y want, how 欧博娱乐y want it, and when 欧博娱乐y want it. This means employing digital strategies to make it easier to buy.
It is critical that airports rethink 欧博娱乐ir strategies for future-proofing non-aeronautical revenue reliance and find ways to de-risk 欧博娱乐ir vulnerability to traffic downturns.
Airports should also look towards o欧博娱乐r business lines to create pandemic-proof revenue streams. Outside 欧博娱乐 terminal, airports can study 欧博娱乐 means by which o欧博娱乐r ancillary revenues can be turbo-charged without 欧博娱乐 reliance on passengers. Out lots and terminal adjacent property may be 欧博娱乐 solution. Studying your full range of options and examining new industry best practices is critical to stabilizing revenue streams post-COVID.
