The pandemic has made airports realize the importance of non-aeronautical revenue in the recovery as well as the sustainability of the industry. Airport Council International released a guidebook in March 2022 – Optimal Integration of Airport Ground Access Services Handbook– to help airports strengthen their non-aeronautical (commercial) revenue to improve the traveler experience and contribute to the recovery of the sector. The handbook talks about product segmentation, pricing strategies, technology enhancements, and others to increase airport revenue.
In an article with International Airport Review, Thomas Romig, Vice President, Safety Security and Operations at ACI, lays stress on the importance and crucial role of seamless travel and data-driven operations in the airport ecosystem going forward.
The time spent by a traveler at the airport before boarding the flight provides the possibility of generating greater revenue through a digital airport platform that provides end-to-end digital airport solutions.
Platforms such as Skateboard leverage data to personalize traveler experience, ensuring that travelers can satiate their dining, shopping, and entertainment needs faster, allowing them to make the most of their dwell time.
8 Ways to Boost Airport Revenue
Push Notifications for Preferred Activities
The airport wi-fi can do much more than enable travelers to access apps on their devices. Integrating a smart data platform into the existing wi-fi infrastructure helps collect demographic and psychographic information of the travelers which is further analyzed, compiled, and added to their profile. As soon as the traveler connects to the wi-fi, the platform can access this data, and offer services matching the traveler’s preferences.
Further, the data-driven suggestions lead to high conversion rates since they directly address user choices.
Strategic Partnership for Local Advertising
Leisure travelers are always looking for more information, economical lodgings, ground transport booking, and other amenities. As the smart data platform already analyzes traveler data, it can be utilized to determine specific local activities appealing to the traveler.
As an airport, you may collaborate with these businesses and run advertisements on digital platforms, like your dedicated airport app, earning money with each passenger click.
Optimizing Passenger Queuing Time
Long queues at check-in and security checks significantly reduce passenger dwell time. This can be optimized through electronic call forward systems and virtual assistants. Electronic call forward systems also display the expected wait time, thereby reducing the uncertainty around it.
Similarly, a virtual assistant can prepare passengers for the next process in line providing better clarity, especially for first-time travelers.
Building on Store Availability
Each store at the airport helps drive revenue if they are accessible at the busiest hours. Leverage data to analyze the most active hours and the busiest parts of your airport.
Once identified, ensuring that the relevant shops are accessible during busy hours will significantly impact your revenue.
Analyze Peer Airports
Travelers today have the luxury to choose from various airports. If your airport lacks crucial infrastructure or does not support the most preferred facilities, your travelers will select your peer airports over you.
It is imperative to analyze your peer airports. Study their passenger flow, technological advancements, and the stores leveraging their revenue. Subsequently, incorporate the missing parts into your airport and tie up with these preferred stores to generate revenue from new services.
Store Analysis
Besides introducing new stores, it is also vital to thoroughly assess the existing ones. Study the revenue pattern of each store and use this data for an informed renewal decision. You may also study the traveler preferences for each store to onboard concessionaire airport stores for remodeling purposes.
Partner with Ordering and Delivery App
Old age, health concerns, or tiredness may deter passengers from exploring various sections of the airport. However, bringing the services to them can ensure their contribution to your airport revenue. You can support this service by hiring additional staff or partnering with delivery apps.
Introducing shopping and dining delivery options within the airport will not only increase revenue but will also facilitate customer satisfaction. Enhancing your traveler’s comfort will ensure greater loyalty and increase the chances of them revisiting your airport.
In-flight Shopping
The most significant source of revenue for airports are duty-free goods and retail. The global market for online in-flight shopping is anticipated to grow to $825.3 million by 2030, suggesting a 12.8% CAGR from 2021-2030.
While most travelers would like to buy products, they might not have enough time to do so. Introducing an in-flight purchasing experience via an airport commerce marketplace can prove advantageous in such cases.
An in-flight eCommerce platform allows travelers to scroll through a catalog of products available at the airport. They can check it pre-flight or during the flight and the purchases can be delivered at the airport or to their preferred address.
Digital airport revenue solutions leverage the existing mobile world for frictionless airport passenger experiences. Streamlining the process, minimizing waiting time, and allowing travelers to do anything they want at the tip of their fingers with minimal effort leaves a lasting impact.
End-to-end digital solutions like Skateboard, drastically improve the airport revenue by leveraging data and improving the passenger experience.
