Capitalising on Non-Aviation Revenue Streams
What happened in the aviation industry post pandemic?
After one of the most challenging global phenomena in the recent history of the aviation industry, it still is in recovery.
Airports are focusing on cost management and clawing back lost revenue. The decrease in staff numbers is also causing delays in passenger journeys. To meet the expectations of both airline partners and passengers, airports need to think outside the box.
Can airports afford to invest in crucial infrastructure without increasing charges? Aside from refinancing and accessing private sector funding, airports are also looking for ways to increase non-aviation revenue streams to generate profit and use it to finance airport infrastructure.
In this article
Optimising Untapped Revenue Streams at Airports
The aviation sector is undergoing a fundamental transformation with each passing day as new technological advances come to light. Artificial intelligence has ushered in a new era of smarter aircraft, which integrates seamless, complicated data analysis and automation, thereby providing safer and more efficient travel for both passengers and crew alike.
With the latest advancements and initiatives that are revolutionising the way we fly, we can also aim to maximise sustainability, reduce noise pollution, and enhance overall efficiency in the airport industry.
Airport e-commerce websites
One way for airports to unlock more revenue is to integrate duty-free and travel products into their e-commerce websites. In this way, passengers will not only check e-commerce websites to search for and book flights or hotels but also get access to other items, all on a single platform.
Airports can also take advantage of their e-commerce websites to offer pre-order options to their passengers. This not only helps boost revenue for airline partners but also acquires valuable passenger data for tailoring personalised marketing and offers.
View the latest news and articles we have published on the industry
Get the latest monthly news and event updates straight from your inbox
One of the biggest non-aeronautical drivers for airports is parking reservations. Airports can make the most of their parking operations through revenue management and dynamic pricing models. Airports can also partner up with pre-booked bus, taxi, train, or monorail companies to sell tickets at a discounted price through their airport e-commerce website.
Food and beverage
Allowing passengers to pre-order their food and beverages through an app or e-commerce website can help increase non-aeronautical revenue. Attaching retail vouchers to food and beverage order receipts can also encourage them to spend more. At the same time, they can also use these vouchers to redeem other items from airline partners, which can result in increased airline revenue.
Cost control in Airports
While there are several non-aeronautical streams to tap into, we also need to understand that there is increased pressure in airports to do more with less. Predictive technology and business intelligence can help airports cope with the revenue losses and budget cuts they are experiencing. These types of capabilities give airports the data they need to understand their operations better.
Once airports know how and where their budget is going, they can now create a plan to further optimise their funds. Interoperability and collaboration are essential for the success of airports, airlines, and other stakeholders.
Looking for something else?