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Boosting Airport Non-Aeronautical Revenues

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Concessionaire Analyzer+ (CA+) is a software solution that allows airport terminal operators to analyse non-aviation activities of concessionaires to maximise airport revenues. CA+ allows sales data from concessionaires to be centrally collected, analysed, reported on, audited, used for invoicing and be the subject of BI, enabling airports to assess spend by passenger, carrier, route, day, time, location, and gives insight into the impact of external events (eg: delays).

This enables terminal operators to better understand retail flows and undertake more effective negotiations with both carriers and concessionaires to optimise the retail mix. CA+ acts as the central intelligence of all retailing activity in the airport terminal. It also provides facilities to maintain concessionaire contracts with complex revenue share schemes and guarantees among other elements, and the generation of concessionaire billing.

Published in: Data & Analytics

Boosting Airport Non-Aeronautical Revenues

  1. 1. Control, Manage and Boost Non-Aeronautical Revenues
  2. 2. 40% Non- Aeronautical 56% Aeronautical 4% Non-Aeronautical Sector Aeronautical Sector Non-Operating Revenue Non-aeronautical sector revenues reached US$58bn in 2014* • Non-aeronautical sector usually more profitable • Contribution to EBIDTA significantly higher * 2015 ACI Airport Economics Report 2 Airport Revenues
  3. 3. 3 1. Need to boost non-aero revenues to support core operations 2. Need to control concessionaires 3. Need to have more detailed and fresher data for improved analysis and insight 4. Need to automate and secure processes • Data collection • Analysis • Billing What are the Challenges?
  4. 4. 4 • Data Collection • Monthly or weekly totals • sometimes by category • no transaction level data • Concessionaires usually report by email • Significant effort spent on collection and chasing • High dependence on Excel by commercial team • Process lacks control, auditing and monitoring • Billing • Lacks automation and controls • Analysis • Performance analysis limited and manual Current Situation
  5. 5. 1. Improve controls, auditing, monitoring and chasing 2. Increase level of detail and thus capability for analysis 3. Reduce delay in data collection and analysis 4. Combine sales data with flight and passenger numbers 5. Improve performance through better analysis and tactical actions 6. Assess impact of promotions, digital advertising and more 7. Share analysis with concessionaires for broader performance analysis 5 The Opportunity
  6. 6. 6 Core Business Processes Manage concession agreements Calculate revenue shares Lease agreements, W&E, services Billing of revenue shares, rents, minimum guarantees, utilities etc. Performance and Data Analysis Sales Data Collection Concession Contracts Management Revenue Share Calculations Property Management Billing Analysis Collect sales data from concessions
  7. 7. 7 Additional Business Processes Sales Data Collection Concession Contracts Management Revenue Share Calculations Property Management Billing Analysis Loyalty Flights People Counting
  8. 8. 8 CA+ Solution Overview Concession Contracts Enables management of concession agreements including revenue shares, minimum guarantees, rents, utilities etc. Property Management Manage leases of offices, hangars, counter-tops, warehouse, as well as utilities and services Revenue & Billing Calculation of revenue shares, MAGs etc., undertaking billing with optional integration to accounting/ERP systems. Reporting & Business Intelligence Reporting & BI provides insight on performance of concessions, flights, routes, revenue categories, terminals and much more. Collect Sales Data Automates collection of detailed sales data from concessionaires. Flights Integrates with operational flight data systems to collect detailed flights and passenger data.
  9. 9. 9 Data Collection
  10. 10. 10 Data Collection Methods VALIDATION, LOGGING & MONITORING
  11. 11. 11 VALIDATION, LOGGING & MONITORING
  12. 12. Monitoring 12
  13. 13. 13 Data Collection Methods VALIDATION, LOGGING & MONITORING
  14. 14. 14 Concessionaires’ Back- Office System Concessionaire’s Back-Office System VALIDATION, LOGGING & MONITORING
  15. 15. 15 CONCESSIONAIRE BACK-OFFICE SYSTEM
  16. 16. 16 Concessionaire Back-Office Concessionaire Back-Office Concessionaire Back-Office
  17. 17. 17 Data Collection Methods VALIDATION, LOGGING & MONITORING
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  19. 19. 19 Data Collection Methods VALIDATION, LOGGING & MONITORING
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  22. 22. 22 • Software installed on any POS, automatically transferring printed sales receipts data to CA+ • Fully automated • Non-intrusive • Boarding pass scanning to tag flights to sales
  23. 23. 23 Data Collection Methods VALIDATION, LOGGING & MONITORING
  24. 24. POS with standard POS functionality as well as airport specific features. 24 Boarding pass scanning to tag flights to sales Destination-dependant pricing/tax/excise Support for airline voucher payments/reporting Integrated with CA+ Real-time data collection Supports retail & F&B
  25. 25. 25 Data Collection Methods VALIDATION, LOGGING & MONITORING
  26. 26. 26 ROI DRIVERS Control Automation Insight
  27. 27. Centralised CA+ Data Warehouse Role based CA+ Portal for airport and concessionaire users Integration layer to receive data from concessions Business Intelligence Platform for data analysis and insight on performance Contracts management, revenue shares, minimum guarantees, utilities & services, and additional charges Automation of billing and/or integration to ERP system 27 The CA+ Solution
  28. 28. • 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 28 What does CA+ do?
  29. 29. • Improves control on concessionaires and airport commercial team • Enables better understanding of sales patterns, routes, airlines, categories and more • 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 and 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 29 CA+ Benefits
  30. 30. 30 CA+ Architecture
  31. 31. 31 Role based dashboards, drill-down and filtering Dashboard composition can be determined centrally or configured by user 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 BI Module
  32. 32. Analyse 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 32 BI Capabilities
  33. 33. 33 Business Intelligence – Sample Dashboards
  34. 34. 34 Business Intelligence – Sample Dashboards
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  43. 43. 43 REVENUE CALCULATION & BILLING
  44. 44. Maintains commercial contracts • Revenue share % by product category, destination (e.g. EU/non-EU), by threshold • Minimum guarantees • Rents • Additional charges (maintenance fees, internet charges, marketing fees) Undertakes daily revenue calculations Generates concessionaire billing • Optional integration with ERP systems 44 Revenue Calculation & Billing
  45. 45. Maintains Lease Agreements • Leasing of hangars, offices, store rooms, sales counters etc • Management of Water & Electricity metering & billing • Management of services such as • Additional charges (maintenance fees, internet charges, marketing fees) Billing • Automates billing of rents, utilities & other charges • Supports payments on different billing cycles • Supports billing in arrears and in advance • Optional integration with ERP systems 45 Property Management
  46. 46. Property Management 46
  47. 47. 47 DEPLOYMENT SaaS Licensing model On-premise or hosted in Cloud Opportunity for managed service
  48. 48. Control, Manage and Boost Non-Aeronautical Revenues www.caplus.aero

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