2.1 Different sources of Passenger revenue

• Aviation
• Further Education (Key Stage 5)

Different sources of Passenger revenue

2.1 Explain different sources of passenger revenue at airports. 

Objectives 18.2.26

To complete and submit 2.1 

To submit 1.1 / 1.3 if you haven't already.

To conduct research for 2.2

Group activity 

Discuss all the ways that airports create revenue.

Two types of revenue 

Aeronautical - for example, landing fees, aircraft parking charges, and passenger security fees. 

Non-Aeronautical - for example, retail shopping, food and beverage, advertising, car rentals, parking, and leasing. 

How much of an airports revenue is though non -aeronautical?

15%

24%

37%

What strategies do airports use to maximise revenue?

Why is generating revenue so important for airports?

Why it is so important....

Diversification: Relying solely on aeronautical revenue can lead to financial instability. Non-aeronautical revenue diversifies income sources, reducing dependency on a single revenue stream. This diversification is one of the most effective ways for airports to ensure financial growth.

Revenue Potential: The non-aeronautical sector offers significant revenue potential. By optimising services, airports can tap into untapped revenue streams.

Enhanced Passenger Experience: Non-aeronautical activities, such as retail and dining options, contribute to an improved passenger experience, increasing customer satisfaction and loyalty. Happy customers are more likely to spend their money on airport services.

Competitive Edge: Airports that offer a wide range of non-aeronautical services gain a competitive advantage by attracting more passengers and businesses.

Economic Impact: Increasing non-aeronautical revenue positively impacts the local economy by creating jobs and attracting businesses to the airport vicinity

Strategies 

Increasing dwell time

Passenger engagement 

Personalisation 

Pre book food and drinks 

Buy now / collect on return 

Click and collect - Boots 

Loyalty/reward schemes 

Airport lounge reservations 

Fast track security 

Car Parks 

Private companies - pay rent

Short/mid/long term 

Drop off charges 

www.facebook.com

RAC drop off charges 

Retail and duty free 

Case study - Heathrow 

Heathrow Boutique 

https://fb.watch/xQeqmDDIGz/

boutique.heathrow.com

www.dfnionline.com

Reserve and collect 

Choose your terminal and decide what you want to reserve.

Catering 

Pre order 

Fast track/extras  

Fast track security 

Lounges 

Trollies

Developments 

Hotels/malls/expanisions 

changiairport.crowneplaza.com

Changi - Airport room 

TWA hotel at JFK

nitravelnews.com

Vending 

www.glasgowprestwick.com

Prestwick - hire 

2.1 Explain different sources of passenger revenue at airports. You must include:

• car parks and drop off 
• retail and duty free 
• catering
• taxis and transport links 
• fast track
• trollies
• lounges
• excess baggage charges
•  ancillary items (for example, baggage wrapping, pop up kiosks, VIP baggage porters, health and wellbeing vending, smoking shelters
• foreign exchange
•  additional and new sources of passenger revenue