Boosting Airport Non-Aeronautical Revenues

Manage & boost airport non‐aeronautical revenueswww.concessionaireanalyzer.com

John de Giorgio

1CONCESSIONAIRE ANALYZER+

Airport Revenues

44%Non‐

aeronautical56%Aeronautical

Non‐aeronautical Sector

Aeronautical Sector

CONCESSIONAIRE ANALYZER+ 2

Non‐aeronautical sector revenues $51b in 2012*• Non‐aeronautical sector usually more profitable sector• Retail and/car parking usually largest component• Contribution to EBIDTA significantly higher

* ACI Economics Report 2013

Context

Continued downward pressure on airports’ aeronautical revenues from airlines & competition

Airports are increasingly reliant and focused on non‐aeronautical revenues

Revenue sharing and minimum guarantee concessions are the norm. Variation in revenue shares.

Need to measure to manage and influence non‐aeronautical performance

Desire for more control and automation


Current Situation

Data Collection•Monthly or weekly totals by category ‐ not transaction level•Data collection reflects billing needs not analysis needs•Sales data by flight usually only for duty free & variable quality•Concessionaires usually report by email and not structured•Significant effort spent on collection & chasing•High dependence on Excel by airport commercial team•Process lacks control, auditing and monitoring

Billing process• Billing process lacks automation and controls

Analysis• Performance analysis generally limited and manual


Business Process

Data

Collect sales data from concessions

Contracts

Manage concession agreements

Revenues

Calculate revenue shares

Billing

Billing of revenue shares, rents, minimum guarantees.Possible

integration to ERP systems

Analysis

Performance and Data

Analysis in view of improving performance


The OpportunityImprove controls, auditing, monitoring and chasing

Reduce delay in data collection and analysis, increasing agility and responsiveness to trends

Increase level of detail and thus capability for analysis

Combine sales data with flight and passenger numbers

Improve performance through better analysis and tactical actions to drive decision‐making and planning

Assess impact of promotions, digital advertising and more

Share analysis with concessionaires for broader performance analysis

Boost non‐aeronautical sales and income


CA+ Overview

Collect Sales Data

•Automates capture/receipt of sales data from concessionaires to allow subsequent analysis.

Analyse Performance

•BI provides insight on performance of concessions, flights, routes, revenue categories, terminals and more.

Concession Contracts

• Enables recording of concession agreements including revenue shares, minimum guarantees, rents etc

Revenue & Billing

•Calculation of revenues due, undertaking billing and optional integration with accounting.


Data Collection Options

Thin‐client software installs on any POS and automatically transfers sales receipts to CA+

Fully automated


Data Collection Options

CA+ Capture

• Thin‐client software installs on any POS and automatically transfers sales receipts to CA+

• Fully automated

• Thin‐client software installs on any POS and automatically transfers sales receipts to CA+

• Fully automated

CA+ Interface

• Concessionaireexports to XML format & pushes to CA+ through CA+ web service

• Fully automated

• Concessionaireexports to XML format & pushes to CA+ through CA+ web service

• Fully automated

Airport. POS

• Fully automated real‐time data collection directly from Airport.POS™

• Fully automated

• Fully automated real‐time data collection directly from Airport.POS™

• Fully automated

Excel Upload via CA+ Portal

• Upload via Excel template through CA+ Portal

• Semi‐automated

• Upload via Excel template through CA+ Portal

• Semi‐automated

Manual Upload via CA+ Portal

• Manual data input through portal. Used when data is limited at category totals level

•Manual

•Manual data input through portal. Used when data is limited at category totals level

•Manual


Validation, Logging & Monitoring


Installs on any POS

Boarding pass scanning to tag flights to sales

Captures sales receipts

Submission of data to CA+

Analysis of sales receipt on CA+ Capture

Non‐intrusive

Automatically captures concession sales data from concessionaires’ POS

What is CA+?


CA+ is a software solution that allows airports and concessionaires to manage and boost their performance.

The solution consists of the following elements:

Centralised CA+ data

warehouse

CA+ PortalRole based for airport and

concessionaire users

Integration layer to

receive data from

concessions

Business Intelligence Platform

Data analysis for insight on performance

Concession contracts

management

Revenue shares, rent, guarantees & additional charges

Billing

Automation of billing

What does CA+ do?


Collects and controls sales data

Maintains concession agreements with revenue shares, guarantees and more

Provides a customisable BI platform allowing measurement and analysis of performance to drive revenue improvements

Automates revenue calculation and concessionaire billing

Improves understanding through business intelligence

Allows concessionaires to benchmark their performance

Automation improves resource allocation

Improves auditing and controls

BI Analysis

BI module provides role

based dashboards including drill‐down and filtering

Dashboard composition

can be determined centrally for a role or configured by user or distributed

BI Builder allows self‐service

building of additional BI components

Open database for

ad‐hoc reporting,

querying and use of your

own preferred BI solution

All major browsers

and devices, IOS and Android


BI CapabilitiesAnalyse revenue not just sales

Assess performance before, during and after a promotion

Assess impact of digital advertising campaigns

Compare sales/pax across concessionaires in same category for benchmarking

Compare sales and revenues against budgets

Monitor conversion rates from people counting/flow

Compare performance by category, zone in terminal and more

Allow concessionaires to benchmark their performance with others in same category

Improve intelligence for negotiations with airlines and concessionaires


Sample BI Dashboards


Revenue Calculation & Billing

Maintains commercial contracts

•Revenue share % by product category, by destination (e.g. EU/non‐EU), by sales threshold•Minimum guarantees•Rents•Additional charges such as maintenance fees, internet charges, marketing fees and more

Undertakes daily revenue calculations

Generates concessionaire billing

•Optional integration with ERP systems


Airport.POS


Fully functional POS solution

Boarding pass scanning to tag flights to sales

Destination‐dependant

pricing/tax/excise

Support for airline voucher

payments/reporting

Integrated with Concessionaire

Analyzer+

Real‐time data collection

Optional POS with standard POS functionality plus airport specific features:

Deployment

On‐premise or hosted in Cloud

Opportunity for managed service

Traditional licensing model or Software‐as‐a‐Service


CA+ BenefitsImproves control on concessionaires & airport commercial team

Enables better understanding of non‐aviation sales patterns, routes, airlines, categories etc

Benchmark, monitor and optimise performance of concessions, categories, routes, terminals.

Greater analysis through greater detail

Freshness of data ‐ greater agility

Assess impact of promotions, digital advertising and more

Monitor budgets

More accurately predict future trends and planning

Improve negotiations with airlines and concessionaires

Improve flexibility of contracts and automate billing

Maximize non‐aviation sales, revenue and performance


ROI Drivers

Improve controls

•Control of under‐reporting by concessionaires•Control and audit of airport staff

Reduce data efforts

•Reduce chasing concessionaires•Reduce manual Excel based analysis •Automate revenue calculation and billing process

Non‐aviation sector’s performance improvements

•Measure operational and marketing tactics, improve negotiations etc•Reduce data collection latency improving agility

Re‐focus commercial team from data collection to data analysis


26CONCESSIONAIRE ANALYZER+

www.concessionaireanalyzer.com

Developed by Shireburn Software Ltd

Boosting Airport Non-Aeronautical Revenues

Data & Analytics

Transcript of Boosting Airport Non-Aeronautical Revenues