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27. Oct. 2010
Three innovative ways to increase your airport revenues
by Max Schintlmeister @ 06:14
We were once asked for innovative ideas for airports to generate higher revenues. Here's what we think.



Basically, we see two different ways airports could go.

The first is practicable for every airport. We call it the 'Total Revenue Approach'. This approach doesn't distinguish between aviation and non-aviation revenues. It sees the passenger's revenue potential in total. Here the key to be able to provide the right infrastructure for the specific needs of a passenger is segmentation. Not only do the flight-related passenger needs matter, the non-aviation related needs also have to be analyzed. So to be able to create the right environment to maximize the revenues from those passengers with the highest revenue potentials it is crucial for the aviation and non-aviation departments to cooperate - which usually is a rare occurrence so far.

The second approach is highly specific and takes into account the unique environment of each airport: its location, the characteristics of its catchment area, traffic patterns, etc. With the high seasonality in its traffic distribution Salzburg Airport is a very good example here. Most of the traffic is handled on 15 days during the winter season. So they decided to use their Amadeus Terminal for conventional passenger handling in winter and turn it into a venue for special events during the summer season. This rather unconventional way to make use of a terminal is only possible because there was a demand for a building for special events in the city of Salzburg. So the airport management proved a high level of awareness for the specific needs within its catchment area. It covered an already existing demand, even though it is not directly linked to the traditional aviation business.

The third way is based on an important fact many airports seemingly tend to forget: within the whole aviation industry they are the only place where all stakeholders come together - airlines, airports, air traffic control, authorities, passengers, tour operators, etc. So why not offer research and development solutions for every stakeholder? This would not only improve one's revenue generation but help advance the aviation industry as a whole.

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