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5 ways to tackle NAR challenges

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Digital disruption is impacting non-aeronautical revenue streams negatively, so airports need to adapt their strategies to reflect this change. The new strategies must take into account emerging trends and markets and the airport’s physical and business position, but there are many things that you can do to entice customers to spend more.

Traditional non-aeronautical revenue (NAR) sources are being disrupted on multiple fronts. Car parking revenues are being diminished by the rise of passenger transport companies such as Uber and Lyft and the expansion of public transport connections. Advertisers have moved on from the static displays airports can offer, shifting towards a more data driven strategy, while wage and labour factors forced food and retail concessions to consolidate, which takes away the variety of amenities available to passengers.

There are many things to consider before settling on a strategy, one of which is the understanding of the strategic position of the airport.

“Are new routes being added? Is the passenger base growing? If so, how much and how many? How competitive a business environment is the airport able to create for the concessionaire? Are lease rates reasonable? Is space adequate for the concepts and services needed? Is the labor pool readily available? Is the ability to operate at the airport reasonable, given the added pressures of security, flights and sheer number of people?”, Glen Ryniewski, Assistant Commissioner of Concessions at O'Hare and Midway International Airports, Chicago Department for Aviation, asked.

GAD365 eMagazine: Innovations in airport development

Read the rest of the article in our latest eMagazine: Innovations in airport development, where we seek four experts’ help in maximising non-aeronautical revenue. We will cover:

  • What emerging demographics want,
  • The benefits of stakeholder partnerships,
  • Why product variety matters,
  • How to leverage airport land,
  • And the ways in which you can reinvent car parking.

Download now!

Hear from:

  • Glen Ryniewski, Assistant Commissioner of Concessions at O'Hare and Midway International Airports, Chicago Department for Aviation
  • Daniel Solomon, Co-founder and Director at Minute Suites, LLC
  • Sammy Patel, CEO Midway Partnership, Vantage Airport Group (Chicago)
  • Tom Ruth, President & CEO of Edmonton Airports

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