Airport Revenue Management

Airport Revenue Management

In the air transportation business, revenue management has been mostly associated with hyper discrimination of pricing tariffs made by airlines initially and can rental companies, and to hotel chains recently.

·      This kind of Demand-oriented pricing approach may be extended to other Airport value chair members as well.

·      Price Discrimination to be applied for airport lounges, parking, handling and landing fees.

·      Rigid capacity levels, at least in the short-to-medium term

·      Significant load factors fluctuations within the timing unit considered to be a day, week, month or an IATA season.

·      The achievement of higher load factors during off-peak periods through the use of highly appealing discounted fares as a form of Market Stimulation.

·      Airport parking – lower levels of space occupation are usual at nights or weekends.

·      Discounted fees in a tour package offered to leisure travelers, with different levels of promotional capacity in the case of peak or off-peak seasons.

Price stimulation could create an ancillary package to support the Non-Aviation Business of an Airport Enterprise.

·      In-terminal supermarket, by granting the first hour of parking for free. Geneva Mode _This model for other business too.

Joint promotion activities to attract new customers at the airport’s restaurants and food courts.

·      Airport lounges-common practice for airlines to pay a standard fee for every passenger entering an airport’s lounge.

Airport lounge operator could exploit the revenue management tool to attract extra traffic during off-peak periods, eventually extending to clusters of passengers the chance to rest at the lunge besides solely relying on business travelers.

·      Revenue management could also be applied to Ramp and Ground Handling services.

Ground operation- some spare discounted police aimed at attracting point-to-point carriers during off-peak times,

·      Introduce a rise in price during rush hours to improve the overall hub efficiency.

·      This kind of approach to be extended to landing fees and ATC services also.