Delivering optimal commercial revenues is driven by a cohesive approach, best practice and strong passenger insights. Getting the right balance of product, price and partner is critical to a strong passenger commercial offer. 

Passenger Driven Strategy 

  • Understanding the passenger is key to delivering a cohesive consumer offer across duty free, F&B, specialist retail & services as well as related services, including parking and transport 
  • Using passenger insights, the tender strategy will be finessed to ensure a balanced offer across the terminals which excites the passenger segments and ensures something for everyone  
  • Introducing best practice principles into the strategy to maximise income potential: 
  • Localised approach to optimise commercial delivery  
  • Tailored tactics given current conditions across the sector 
  • Developing an overall medium-long term strategy to optimise income across the airport terminals and estate through an integrated approach  

Innovation & Best Practice 

An innovative approach to managing risk in the current travel climate will allow operators to bid more confidently  

  • Adopting a MAG per pax with strong future years mechanism will support the drive of concession rental rates which will deliver a stronger income over the term of contacts  
  • Efficient tender packages will support a collaborative approach. 

Passenger Focused  

Utilising passenger insights to deliver a balanced consumer offer across price, product and place  

Comprehensive Offer 

Through an innovative and extensive tender process, select best in class operators   

Income Optimisation  

  • Drive maximum income with partners through monthly business reviews 
  • Agree challenging sales and growth targets  
  • Manage performance through targeted KPIs  

Collaborative Approach  

Partnership management of operators to seek and deliver new opportunities for revenue growth and an enhanced passenger experience   

Connected Service Approach    

Manage all commercial activities in a holistic joined up approach to optimise collective income and passenger participation across the terminals and airport campus    

Rationale for Packaging Commercial Concessions 

  • Linking similar concession opportunities together into larger trading operations is best practice and allows a single operator to optimise their operating overhead 
  • This brings economies of scale, producing more profitable operations and allows operators to offer higher, more competitive concession rentals rates  
  • This approach makes it more attractive for international travel specialist operators to participate, offering a stronger competitive tender process and from which, the opportunity to negotiate better final contractual terms for the airport  
  • The Master Concession approach across the concession categories mean that account management by the commercial team is more efficient, with fewer contracts to manage and greater collaboration and performance driven  
  • To ensure operators maximise performance, monthly and quarterly business reviews ensure full collaboration, problem solving and full collective focus on unlocking sales opportunities and an exceptional passenger experience 

Approach for Packaging Commercial Concessions 

  • A Master Concession approach offers the opportunity for multi brand dedicated specialists to control key outlets efficiently and brings a balance of price and facia concepts ensuring the offer is fully appropriate for the passenger mix  
  • This approach works particularly well for F&B and typically delivers between 3% and 5% higher concession rentals 
  • Taking one to two master operators with balanced outlets brings strength, complimentary competition and optimised income    
  • These operators to be complimented with a range of local concepts to give a strong sense of place and national participation 
  • Specialist retail, including foreign exchange, pharmacy, CTN (Travel Essentials) and fashion should all be offered as packages across the terminal estate to maximise commercial concession rental rates and effectiveness     
  • Strong local concepts, particularly in the areas of local packaged food and speciality gifting will work well alongside experienced master concessionaires to build a strong balanced commercial offer and passenger experience 
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