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Chris Wortley Ltd Car Parking & Pre Booking Consultants Specialising in the Airport environment E-mail: chriswortley@me.com Tel: +44 (0) 7759 436 165 |
WHEN thinking of commercial revenue at airports, all too often it is only the international departure lounge that comes into focus. How revenue can be improved within this area is a constantly asked question.
Airports and airport retailers now use sophisticated methods to ensure that they increase dwell time and capture their fair share of the passengers’ spend. Improved bag check-in, faster security, category management, passenger profiling. All have helped to improve the retail offer and the spend
In contrast, airport car parking is too often seen as a facility that has no relationship with passenger spend or departure lounge dwell. Yet it often accounts for more than 25% of commercial revenue and unlike the retail offer, has heavy competition.
The off-airport operators and the booking consolidators are capturing much of this spend, selling car hire, insurance and foreign exchange as part of the bundle. They are in the pre-booking market and use the on-line channels so well.
When commercial revenue is being hit, it is likely that car parking revenue is dragging the numbers down. So apart from being an “˜unattractive’ business compared to the glamour of retailing, it also gives the Airport Commercial Director a headache.
Parking also acts as a double-edged sword. If revenue is falling, for example, and there is a propensity to increase parking charges, it can also affect the passenger departure lounge spend.
All negative stuff, but it doesn’t have to be – there is a positive side.
Airports have to have a pre-booking system in place that integrates with the airport website. Why?
• To compete online with consolidators and improve market penetration
• Better cash flow – parking revenue sooner
• The ability to affiliate with key airlines and their booking systems
• Up selling of car park products from cheaper to dearer
• Bundling of products: Parking, Fast Track, VIP Lounges & discount in the departure lounge
• Better parking revenue management
• Improved capacity management
These are fairly obvious benefits; however there are also other pluses that you get with pre-booking that impact across the commercial revenue spectrum:
• Mosaic profiles of all parking passengers, before they arrive
• Detailed knowledge of the time of arrival at the airport
• The passengers’ e-mail addresses and all of the virtually endless customer relationship management (CRM) benefits that come with that.
• Exclusivity and loyalty deals for frequent flyers
There are futuristic benefits:
• Baggage check/drop at the car park
• Welcome home grocery packs
• Car refuel/valet/serviced/MOT
Pre-booking will not eradicate consolidator competition and why should it, as all competition is healthy? But, airports in countries that have a booking facility can work together with airlines to become their own consolidators. As I said, competition is healthy and doesn’t have to be one sided
So far, the UK leads the pre-booking arena. Europe is starting to adopt the benefits and America, the great roll-up culture, is also waking up to the needs.
Far too often the requirement for pre-booking is driven by consolidator activity and new competitive activity, rather than being seen as a great way of engaging with passengers and levering e-commerce to understand your passenger in greater detail BEFORE they arrive at the airport.
Finally”¦
A question – What is a passenger’s first and lasting touch point at your airport?
Answer – The car park or your website. Not the departure lounge.
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