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
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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
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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
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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
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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.
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Airport Revenue Evolution
[Link]
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Airport Revenue History
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Airport Revenue Future
[Link]
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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
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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
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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
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Class Exercise
Airport Revenue Exercise
Identify 2-3 current airport revenue issues?
____________________________________________________
____________________________________________________
____________________________________________________
Identify 2-3 future (beyond 5 years) airport revenue issues?
____________________________________________________
____________________________________________________
____________________________________________________
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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
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Any Questions?
Have a Good
Workshop!
Contact us: training@[Link]
Visit us: [Link]
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