MSP Solutions has a number of people with a wide range of experience in both property and airport retail areas, and can provide airport operators with experience-based knowledge in optimising non-aeronautical revenue performance.
Maximising Asset Return
Airport operators are under increasing pressure to optimise revenues they generate from their assets, particularly so in the current worldwide economic recession. It is possible to achieve this through adopting policies and practices that will unlock and exploit commercial activities to increase revenue.
In addition to aeronautical revenue income, which is often regulated, airports can significantly benefit from using their property assets to ensure that maximum financial benefit is derived from all commercial sources. Major components of non-aeronautical revenue include duty & tax free, news and gift shops, airport car parking, property/office rental and other services such as cafes/bars, car rental and currency exchange.
Some airports are extremely successful in maximising the revenue potential of their property. Others, however, have yet to develop these opportunities.
Travellers today expect a full range of commercial services being available, even at smaller airports. Retail opportunities consequently improve the overall passenger experience and at the same time provide significant revenue opportunity for the airport operator.
MSP Solutions also has expertise in property management within the airports sector and can offer guidance and assistance in property lettings. Our offer includes conducting an audit of existing commercial activities from a holistic viewpoint, and to provide an honest and realistic assessment of additional non-aeronautical revenue streams that can be achieved as a result.
Using a combination of experience and statistical analysis, MSP Solutions is able to produce class-leading insight for each of the main commercial activities. This knowledge can be integrated with traffic forecasts to develop realistic and achievable revenue growth targets. We always use a systematic and objective approach to maximising benefits from all aspects of airport property, by examining:-
- The airport architecture and strategic issues in optimising concession sales
- Aviation industry developments likely impact on airport commercial development
- Consumer market research and benchmarking
- All retailing and concession opportunities
- Allocation of space to retail categories
- Landside/airside retail and catering mix
- Airport advertising opportunities
- Car parking product development
- Rental agreements and terms for office and other accommodation
- Estimates of sales and revenues from proposed commercial activities
- Management of pre to post tender relationships with concessionaires
- Preparation of RFQ and RFP’s for all commercial activities
- How change can be achieved with minimum operational impact
By undertaking a study of existing arrangements and proposing change where appropriate, MSP Solutions is confident that it can formulate proposals that will produce significant, quantifiable business benefits through the enhancement of commercial revenues.