Maximizing Airport revenue in the year 2020

With the aviation industry currently facing some turbulence, IQPC Worldwide spoke to

several airport executives on the growth of the airport industry over the next decade and

what we can expect by the year 2020. Here’s what they had to say:

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Maarten de Groof, Executive Vice President & Chief Commercial Officer,

Schiphol Group. “There will be many challenges and opportunities.

Customers evolve, competition will evolve. Some factors will remain.

Airports will need non-aeronautical activities for their financial continuity,

and customers want products and services on airports. Non-aeronautical

activities must always be looked at in the context why customers are on an

airport. Differentiate to target groups, their reasons for traveling, their

wishes and needs, segment to many variables (nationality, age, cultural background, time

available, etc). They are not passengers, they are customers.

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Peter Spurway, Vice President, Concession Development for Halifax

International Airport Authority. “I see the increasing use of technology and

passenger-driven options evolving significantly in the next ten years.

Technology can allow passengers to manage their own travel plans and

processes, making them more independent of services airports and airlines

currently supply. At the same time, the need for the human touch – a warm

smile and a heartfelt offering of hospitality - will never go out of fashion.” ---------------------------------------------------------------------------------------------------------------------------

Steve Wareham, Director of MSP Operations, Metropolitan Airports

Commission. “I believe this approach will continue to grow and mature, and

in the end the passenger will profit from increased offerings and customer

service considerations. Conferences like IQPCs Maximizing Non -

Aeronautical Revenue through Airport Services can provide the right type of

venue for airport professionals to learn lessons (what works and what

doesn't) and bring something back home for a positive impact.”

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Ansgar Sickert, Managing Director for FRAPORT INDIA, “I see three

clear trends here,. Firstly, more airports will forge closer partnerships with

retailers, duty free and F&B operators. It is quite surprising how many

airport operators still content themselves with the role of landlord renting

out space to whichever concessionaire wants to sell his wares at an airport.

This, in my opinion will disappear as airport operators become increasingly

aware of the importance of a professional, well thought out commercial strategy for both

the bottom line and customer satisfaction.

Next, the commercial offer at airports will become increasingly designed along customer

segments. Many airports spare no expense to better understand who their customers are

and develop ever more sophisticated concepts to satisfy their customers. Some retailers,

for instance already adjust their offerings several times a day responding to preferences

of nationalities and/or type of traveller (eg. business, economy, holiday, low cost etc).

Such flexible approaches will become more common as the push comes from airports,

concessionaires and passengers alike.

Finally, it’s already become somewhat of a cliché but we'll see more airport specific

property development or airport cities. I believe that many developers will flush money

down the drain in a misunderstood zeal to "cash in" on airport cities without a clear

strategy or understanding of the business. However, more and more particularly large

airports will surely graduate to an aerotropolis.”

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Donald D’Souza, Business Development Manager, Commercial Division

for the Sharjah Airports. “With the aviation industry expected to grow to

greater heights with billions of investments expected to be infused

globally into the aviation industry we can foresee a lucrative future to the

overall growth to the aviation industry. The passengers desire to commute

via air is increasing steadily which is a clear indicator of what is in store

for the days to come.”

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Raghavendra Rao, Executive Director for the Airport Authority of India.

“Seamless travel experience for the benefit of the traveler comes not only

from within the terminal but also connectivity from the city to the Airport.

Integrated terminals providing handling international operations and

domestic operations under one roof will provide easy transits / transfers.

Inter-modal connectivity at the Airport with road and rail connectivity would provide

City-Airport link.

Multi-level car parks and connectivity from the car parks to the terminal through

travelators or elevators / escalators would ensure transit through a protected environment.

Check-in processes: Self-Check-in / Common User Terminal Equipment (CUTE)

coupled with 3D barcoded Boarding Passes would reduce the processing delay.”

------------------------------------------------------------------------------------------------------------ All the above airport executives will be presenting at the Maximising Non – Aero Nautical

Revenue conference. For more information about the conference please contact Bryan

Camoens at bryan.camoens@iqpc.com.sg or visit www.airportrevenuesummit.com