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Strategic marketing for airports
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 the roles played by competitors, substitute goods and services, suppliers and customers.
As for competition, the barriers to entry (artificial and natural, the high investments required, legal restrictions) are quite low key, often approaching positions of monopoly.
Although this situation may entail airports sitting back on their laurels, it is definitely worth getting out there and not letting the advantages and profitability arising from a competitive approach pass by. It is crucial to set up a benchmarking system for the observation of good practice in the industry and in other relevant sectors, finding out which marketing and commercial strategies are employed to see whether improvements can be found for airports.
In the search for substitute goods and services, other forms of transport not requiring airport services but still providing comparable levels of speed and comfort will have to be observed. High speed trains are one case in hand for consideration to find out to what extent the airport target audience is absorbed, although there will often be cases where they become an ally, given that they may work as a source of traffic to the airport, in journeys where it is necessary to make connections from other areas.
The study of customer (airlines and final customers) and supplier bargaining power is crucial; despite pricing regulations there is still room for manoeuvre.
It is obvious that the influence of airlines as customers is linked to their potential to generate traffic. However, if criteria based on equality were to be taken as a starting point, that is to say the same price for the same service, then such concepts as diversification or specialisation would have to be taken into consideration as strategic solutions, including the possibility of offering different prices to low cost airlines, due to the fact that the services they offer are different; the orientation of the airport towards a specific service; some airports with secondary locations have decided to provide services exclusively to low cost airlines, others have specialised in freight or private flights or in developing areas and services specifically for first or business classes.
Airports are going to find that they have much more freedom of action in the provision of non-aeronautical services (land services, terminals, luggage management etc.). These services may be provided directly or through subcontracting, in which case the selection of the subcontractor is crucial, giving preference to those subcontractors who in addition to making a competitive offer are also able to provide efficient management.
The possibility of offering final customers services during their stay in the airport also holds important opportunities. The services required by users vary according to profile and will change over time. Great attention must be paid to customer needs; the preparation of a flexible offer capable of responding to these trends is vital. For example, the provision of wi-fi services in airport terminals would not have been taken into consideration a few years ago but has now become a differential service highly valued by business travellers and also by a wider target audience due to simple connectivity through laptops, mobile phones, pda etc. which can now be easily achieved through the establishment of strategic alliances with telecommunications companies.
These are just some suggestions but it is through diagnosis that the key factors in success and sustainable competitive advantages can really be determined. When these have been established, the plan of action can then be defined.
A basic element in this plan is the work required for the positioning of the airport (desired but not always perceived), working in the creation of communications and sales plans with the definition of both current and potential services, identity, branding, the definition of corporate profile, presentation formats for customers, suppliers and stakeholders, online strategies etc.
These actions are fundamental in leading the airport towards an improved commercial position.
image: flickr.com/photos/rafallano/2827687946
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