Non-aeronautical revenue is considered an alternative source of income for airports. It generally contains food and beverages, retail, parking, and other activities. Non Aeronautical Revenues are usually more diverse than conventional aeronautical revenue streams and constitute a vital component of an airport’s income statement. Recently, Airports have commonly engaged with non-aeronautical revenue to handle the unpredictability of the Airline business. Let’s find out how Airports can take their non-aeronautical Revenue to greater heights.
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Travel retail
Travel retail or duty-free sells products to travelers who are visiting foreign countries. It is one of the primary sources of non-aeronautical revenue. It is a great branding opportunity for consumers. Digitalizing it will make it more convenient. Online offers and pre-booking retails will help customers to browse in their leisure time instead of last-minute shopping before take-off. Targeted marketing and personal recommendations will unlock more non-aeronautical revenue.
Airport Parking and Transportation
Parking encompassed 41% of non-aeronautical revenue in 2013. LAX took its non-aeronautical revenue to success by generating up to $108 billion only using parking services. Introducing management of Revenue will help grow this sector. Increase occupancy and revenue growth using a dynamic pricing model. Encourage passengers to park with you by offering lower prices at off-peak hours. However, increase the cost during peak times to prevent over-exploitation. Similarly, special offers can make ground transportation attractive again.
Food and Beverage
Food and beverage will always be a rising star of revenue. It is the fastest-growing sector, comprising an 11.2% growth rate in upcoming years. ATL expects to generate more than $200 million from its food and beverage sector. Airports can make offers more convenient by introducing local brands and pre-booked online orders. They will not only enjoy the saved time from pre-booking but might even agree to an in-lounge experience.
Commercial Development and Advertisements
Enterprises, Industrial parks, transport infrastructure, and hotels are all commercial projects on Airport property that contribute to non-aeronautical revenue. Secondly, Airports can advertise branded locations, sponsored areas, and special events while improving airport ambiance and passenger experience.
Improving Passenger revenue
Efficient airport checkpoints can go a long way. It will increase customer satisfaction by reducing line-up times and improving passenger revenue by freeing up passengers’ time to spend. A customer experience manager discovered a strong connection between waiting times and non-aeronautical Revenue. Implementing digital strategies will aid in improving passenger revenue.
