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Everyone’s talking about how to enhance non-aeronautical revenue

Non-aeronautical revenues are essential to airports’ financial health, so we asked industry experts how they ensure they reap the benefits of airport incomes.

Non-aeronautical revenues are essential to airports' financial health

In International Airport Review’s first-ever column, we spoke to some leading industry experts who told us how they focus on increasing non-aeronautical revenues.

Participants:

Patrick LucasNon-aeronautical revenues are essential to airports' financial healthTomasz LenartNon-aeronautical revenues are essential to airports' financial healthJoseph HuberTanja Dik
Patrick Lucas, Head of Airport Business Analytics, ACIDimitri Coll, Director of ACI’s ASQ programmeTomasz Lenart, Passenger Services Manager, Wroclaw AirportAude Ferrand, Chief Retail Officer, Groupe ADPJoseph Huber, Director Contract & Procurement Administration, CVGTanja Dik, Director of Consumer Products & Services, Amsterdam Airport Schiphol

Patrick Lucas and Dimitri Coll: The rise in the number of global travellers alongside the increased use of mobile and digital technology, more competition and new e-commerce options has illustrated the crucial importance for non-aeronautical revenue for airports.

With technology at their fingertips, today’s passengers are seeking a seamless, secure and efficient journey that is highly personalised.

Retail facilities and food and beverage outlets represent, on average, more than one third of commercial revenue. However, disruptive technologies such as online retail and e-commerce platforms, and increased competition off-airport, has limited the growth prospects regarding airports’ non-aeronautical revenues.

Based on ACI’s Airport Economics Survey, non-aeronautical revenue share, which was estimated at 43.1 per cent in 2005, was recorded at 39.9 per cent in 2017.

The modern airport operator is a complex business, recognising the value of harnessing data to grasp the tastes and preferences of passengers to deliver a return on customer experience.

ACI’s ASQ programme provides a key source for this data as it is the globally established benchmarking programme measuring passenger satisfaction whilst travelling through an airport and provides a detailed view of the passenger experience.

It is crucial that airport operators use this data to attract the right blend of retailers and concessions by not only crafting a concession agreement to maximise net revenues from commercial activities but working closely with these concessions to achieve the ultimate goal of maximising overall customer experience.

The best way of increasing non-aeronautical revenues is to increase the customer satisfaction

Indeed, an increase of one per cent in the global passenger satisfaction mean, as defined by the ASQ Survey, generates on average a 1.5 per cent growth in non-aeronautical revenue.










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