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Module 01 Course Introduction

This document provides an overview and schedule for an airport revenue workshop. The workshop will cover topics including airport revenue history, legal aspects, concession management, and developing successful requests for proposals. The goal is to increase knowledge around optimizing non-aeronautical revenue through third-party services and innovation. The schedule outlines sessions on the first and second day that will focus on market knowledge, business development, managing concessions, and other non-aeronautical revenue opportunities like real estate and parking.

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Roberto Simpson
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46 views21 pages

Module 01 Course Introduction

This document provides an overview and schedule for an airport revenue workshop. The workshop will cover topics including airport revenue history, legal aspects, concession management, and developing successful requests for proposals. The goal is to increase knowledge around optimizing non-aeronautical revenue through third-party services and innovation. The schedule outlines sessions on the first and second day that will focus on market knowledge, business development, managing concessions, and other non-aeronautical revenue opportunities like real estate and parking.

Uploaded by

Roberto Simpson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Session 01 – Course Introduction

Miami, USA June 29-30, 2017

ACI Instructor: Andre Bergeron


Session Outline
This session will outline the following topics:
1. Course Objectives and Schedule
2. Airport Revenue History
3. Legal Aspects
4. Class Exercise
5. Session Review

2
Course Goals
Our goal is to increase participant knowledge in regards to global
best practices to optimize non-aeronautical revenue development,
including:
• Emphasize the opportunities available to airport managers to
enhance non-aeronautical and through third-party services
• Engage participants to understand the role of innovation,
competitiveness, and new outreach technologies in developing
marketing strategies
•We will Focus:
• Market Knowledge
• Development of a concession program
• Managing Concession Program
• Address Opportunities in other Non-Aeronautical Revenue
area such as Real Estate and Parking.
• Engaging Partners through RFP 3
Course Objectives

•We will Focus:


• Market Knowledge
• Business Development – Land & Real Estate
• Managing Concession Program
• Address Opportunities in other Non-Aeronautical
Revenue area such as:
• Growing the Floor Space
• Communication / Advertising
• Parking.
• Engaging Partners through RFP

4
Course Schedule
SESSION Day 1 Day 2

Session 1 Session 4
09:00 – 10:30
Introduction to workshop Concession Management

10:30 – 10:45 Coffee Break

Session 2 Session 4 (cont’d)


10:45 – 12:30
Market Knowledge Concession Management

12:30 – 13:30 Lunch

Session 3 Session 5
13:30 – 15:00
Business Development Other Non-Aeronautical Revenues

15:00 – 15:15 Break

Session 3 (cont’d) Session 6


15:15 – 17:00
Business Development Developing a Succcessful RFP

5
Airport Revenue History
Airport Revenue History
• Airports prior to globalization and the deregulation era were
regarded as utility infrastructure with emphasis on service provision
to airlines and general aviation

• Relationship between airports, airlines, and governments was


intertwined with a clear joint mission to provide the service and
infrastructure as a public service But not focused on the Travelers

• Highly regulated airline environment meant airport revenues were


tightly controlled, predictable and not subject to market forces

• In sum, the business of airports was to implement government


policy

7
Airport Evolution from a traveler standpoint
• From Airstrip with a coffee pot on a filing cabinet servicing limited
destination.
• Travelers were a privileged few.
• Limited destinations
• Air Travel became democratized
• Destinations increased with Aircraft range increase and then HUB
• Travelers were still an afterthought
• More revenues were needed
• To become Customer Centric
• Today Modern Airports are “Inter-Modal” Facilities providing a
multitude of destination through an environment akin to a mall
focusing on travelers needs in terms of F&B, Merchandise and
Services
• In sum, the business of airports has evolved from no-regulation to
regulation, to becoming Customer Focus
• Airports have entered in the crosshair of Social Media.
8
Airport Revenue Evolution

http://www.youtube.com/watch?v=ZvLo7I0-HHg
9
Airport Revenue History

11
Airport Revenue Future

http://www.youtube.com/watch?v=963hFR3fCWs
12
Legal Aspects
Airport Revenue Legal Aspects
ICAO Chicago Convention Foundation

•Article 15
• Keep airports open under uniform conditions and
without discrimination on foreign ownership or operation
• Convention does not define level of charges or costs to
be recovered as states must decide level of investment

•Article 37
• Adopt and amend SARPs for industry development

•Article 44
• Ensure safe and orderly civil aviation growth

14
Airport Revenue Legal Aspects
International Attention

• Financially independent airports means new policies on the role


of the marketplace in developing and operating facilities.

• Consensus is needed on best approaches that ensure customers


are well served at a cost-effective level, and at the same time
ensuring investors achieve a reasonable rate-of-return

• Some airports abusing their monopoly, thus conflict exists

15
Airport Revenue Legal Aspects
ACI Policy Recommendation

Airports are strongly encouraged to develop


non-aeronautical activities and maximize
non-aeronautical revenues. There should be
no requirement to use non-aeronautical
revenues to reduce user charges, a practice
known as the “single till”, although some 2016
airports may deem a full or partial use of non-
aeronautical to defray aeronautical charges as
appropriate or necessary to increase their
competitiveness or to meet not-for-profit
requirements

16
Class Exercise
Airport Revenue Exercise

Identify 2-3 current airport revenue issues?


____________________________________________________
____________________________________________________
____________________________________________________

Identify 2-3 future (beyond 5 years) airport revenue issues?


____________________________________________________
____________________________________________________
____________________________________________________

18
Session Review
Lesson Summary
• Modern airport managers must develop an open and broad
view of the world
• Revenue generation demands an innovative approach that also
respects the interests of users, especially airlines and other
airport partners

20
Any Questions?

Have a Good
Workshop!

Contact us: [email protected]


Visit us: http://www.aci.aero/Global-Training

21

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