Whether traveling for business or leisure, many of us have experienced firsthand the increase in the number of air travelers. Although fully booked flights are encouraging news for the industry, they also mean higher operating costs for the individual airports. To help defer these costs and become self-sustaining, many airport managers have begun to explore creative revenue generation opportunities.
A study conducted in 2017 by Airports Council International (ACI) estimated that the airports total cost per passenger is approximately $13.69. This value however exceeds the global average of $9.95 for aeronautical revenue received per passenger. While aeronautical revenue per passenger seems to be constant, the airport has the potential to increase revenue by finding creative ways to increase the non-aeronautical revenue associated with each passenger.
Revenue generated by an airport is typically divided into two streams. Aeronautical revenues include those funds generated to the operation and use of the airfield by aircraft or aviation-related businesses. Non-aeronautical revenues relate to those operations and uses that are incidental to the operation of aircraft. Traditional sources of non-aeronautical revenue include parking, rental cars, terminal lease, concessions, restaurants, and advertising. According to ACI, 39.9% of total global airport revenue is contributed from non-aeronautical revenue sources. Successful airport managers understand not only the aviation-related operations of their airport, but also the revenue potential associated with non-aviation operations and business. Some non-aeronautical revenue strategies that are applicable to both commercial service and general aviation airports include:
As technology advances, additional non-aeronautical revenue sources may also rise and airport administrators must be willing to embrace these opportunities to help defer ever-increasing operating costs and become self-sustaining.
For further questions about these creative approaches please contact me.
Transportation Engineer and Car Enthusiast
- What drew you to Hoyle, Tanner?
- I got to work with Hoyle, Tanner as a client during an internship in college and really enjoyed working with them and also all of the opportunities they have to work in multiple disciplines really appealed to me.
- What’s something invaluable you’ve learned here?
- Always ask questions, there’s always something to learn.
- What’s your favorite time of year to work at Hoyle, Tanner?
- Summertime is always great because it’s a mix of office work and getting outside to do field work.
- What’s the coolest thing you are working on?
- I’m working on a couple of culvert projects on a road near my house that I will get to drive over every day knowing I helped design them which will be cool.
- What’s the best thing that’s happened to you so far this week?
- My fantasy football team went for 230 points!
- How many different states have you lived in?
- Just Vermont. I actually lived in the same house my entire life until a year ago.
- If you could only eat one meal for the rest of your life what would it be?
- What kind of pet do you have and how did you choose to name it?
- I have a Siberian Husky named Samantha and a King Charles Spaniel named Optimus Prime. Samantha was always a name my husband and I liked and it just fit when we got her as a puppy. Optimus Prime was a puppy around the time the Transformers movies were coming out and my husband, who was 16 at the time, picked the name.
- What is a fun or interesting fact about your hometown?
- Burlington has one of only 2 high schools in the country with a seahorse mascot.
- What are three things still left on your bucket list?
- Own an ’88 BMW E30 M3
- Drive the Nürburgring in Germany
- Pass the PE exam
- Name three items you’d take with you to a desert island
- My husband
- A sailboat
- Rob Siegel’s Memoirs of a Hack Mechanic
- What characteristic do you admire most in others?
- How old is the oldest item in your closet?
- A 47-year-old valve cover from a ’72 BMW 2002tii I use to own
- Words to live by? Favorite quote?
- “Life is too short to drive boring cars” -Ssharad Malhotra
- What did you want to be when you were growing up?
- I always wanted to be a doctor until I discovered I have a terribly weak stomach.
- If you were to skydive from an airplane what would you think about on the way down?
- Hoping I don’t land wrong and break an ankle like my dad did a couple of years ago.