the importance of ancillaries for airports

In recent times airports have started moving away from the mere provision of transport services towards a broader business concept, becoming fully-fledged business centres.

Airport revenue can be divided into two categories, that generated by air traffic and that generated by non-air or ancillary traffic.

Air traffic revenue includes landing fees, aircraft parking fees, fuel supply charges, passenger departure charges and charges for the use of passenger boarding bridges and cargo handling.

Non-air traffic revenue covers the commercial activities taking place within the airport and includes leasing, retail, handling (land assistance to aircraft, passengers and cargo), duty free shops, catering, bars and restaurants, advertising, car hire, parking and others.

In order to attain a clearer idea of non-air traffic services and their importance for airport business some real-life cases have been set out below:

The Spanish airport system is at present composed basically of a network of airports integrated in AENA, a state-owned public company, dependent upon the Spanish Ministry for Public Works.

In 2007 the total amount of ordinary revenue for AENA stood at 3,063 million euros, distributed in the following way:

36% air traffic revenue: landing charges, security charges, passenger fees and charges for the provision of services and the use of the airport

6% non-air traffic revenue: charges for the provision of services and the use of the airport

35% air navigation: en-route and terminal charges.

19% commercial revenue and 4% other revenue: rental of land and premises, vehicle parking and other commercial activities.

As can be seen the proportion of non-air traffic revenue stands at 23%.

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Total commercial activities were distributed in the following way: lee el artículo completo…


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Strategic marketing for airports

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Although airports are highly regulated concerns, which means that that the concept of serving public interest has tended to be deemed more important than other issues such as profitability, cost-saving or efficiency, it is within the realm of possibility to make improvements in these areas through the application of strategic planning criteria that have proved valid for other types of businesses.

A marketing plan can be prepared for an airport in the same way as for any other business. It is obvious that there are specific issues inherent to airports to be taken into consideration, just as there are peculiarities in the construction, textile, pharmaceutical or any other industry.

The starting point should be an analysis of the internal and external situation of the concern, allowing performance of a diagnosis through which strategic marketing decisions and a plan of action can be defined. This analysis should cover lee el artículo completo…


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airlines & co-branding

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Co-branding can be a successful strategy as long as the potential alliance takes place between suitably compatible brands, that is to say when the values proposed by each one are related, complementary and capable of generating synergies. The sharing of similar targets is also important, even when some may be closer to one or another of the allied brands, they will still invite the discovery of the others.

An initiative with these characteristics has been carried out by Vueling together with MTV and Custo BCN; that is to say an airline, a TV channel and an international designer. At first sight their objectives may seem disparate and their type of business quite different but if we take a closer look at the orientation of their products and services, the points of union become clearer, given that they are aimed at a similar or potentially similar audience.

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The brands all share a common identity comprising design, modernity, freshness, liveliness, transgression of traditional concepts, youth, imagination, trendsetting and positioning as love marks.Their initiative has been to propose a unique travel experience. Two aircraft from the Vueling fleet have been personalised with Custo designs and MTV is to provide the in-flight entertainment. lee el artículo completo…


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