Regional Airports: Strategies For Revenue Generation

Airports have several income streams, which can be split into aeronautical and non-aeronautical revenue. Airports can make money by charging rent, having profit-sharing agreements, or a mixture of the two. They can also rent out terminal spaces, including gates, ticketing counters, and baggage claim areas. Airports can also generate income through property development, such as constructing hotels, office buildings, and commercial real estate on airport property.

Renting out terminal spaces, including gates, ticketing counters, and baggage claim areas

Airports have several income streams, which can be categorised as aeronautical and non-aeronautical revenue. One way that regional airports make money is by renting out terminal spaces, including gates, ticketing counters, and baggage claim areas. This provides a consistent income stream for airports.

Terminal spaces can also be rented out as flexible shared spaces, allowing for pop-up stores, exhibitions, and events. Airports can also introduce virtual reality lounges for rent by airlines, providing unique in-flight experiences for passengers awaiting their flights.

Airports can also generate income by constructing hotels, office buildings, and commercial real estate on airport property. This can attract environmentally conscious tenants by integrating smart infrastructure into new developments, featuring energy-efficient buildings and automated systems.

In addition to renting out terminal spaces, airports can also generate revenue through food and beverage sales, airport retail, and profit-sharing agreements with airlines.

Renting out hangar space for film crews

Regional airports can make money by renting out hangar space for film crews. This is because smaller airports, such as general aviation airports, can be closed for a few days while a film crew builds a set for a more authentic feel. This also provides an easy way to hire extras, as both airport employees and bored passengers in the terminal can be used for filming with minimal disruption to the airport itself.

Additionally, regional airports can attract film crews by offering flexible and dynamic spaces. For example, they can create pop-up stores, exhibitions, and events within the hangar space, providing a unique and immersive experience for the film crew and passengers alike.

Furthermore, regional airports can integrate smart infrastructure into their hangar spaces, such as energy-efficient buildings and automated systems. This can appeal to environmentally conscious film productions and help the airport reduce its operating costs.

Overall, renting out hangar space for film crews can be a creative and effective way for regional airports to generate income. By providing a unique and flexible filming location, airports can attract film productions and generate revenue through rental fees, profit-sharing agreements, and associated services.

Hosting airshows

Airports can also generate income by constructing hotels, office buildings, and commercial real estate on airport property. In addition, they can develop flexible shared spaces within terminals, allowing for pop-up stores, exhibitions, and events, creating a dynamic airport environment.

Airports can also increase their revenue by expanding their food and beverage options beyond national franchisers to include local restaurants and vendors. In 2013, US airports generated $587 million from food and beverage sales, or about 7.2% of non-aeronautical revenue. Airport retail has also evolved to include designer clothing and locally produced goods, transforming the terminal into a "travel megastore."

Food and beverage sales

Airports have several income streams, which can be categorised as aeronautical revenue and non-aeronautical revenue.

Airports can increase food and beverage sales by encouraging passengers to arrive early for their flights. Heightened security measures after the terrorist attacks of September 11, 2001, mean that passengers are spending more time in airport terminals. By arriving early to clear security, passengers have more time to spend money on food and drinks.

Airports can also generate income by renting out terminal spaces, including gates, ticketing counters, and baggage claim areas. This provides a consistent income stream. Additionally, airports can develop flexible shared spaces within terminals, allowing for pop-up stores, exhibitions, and events, creating a dynamic airport environment.

Retail

Airports have several income streams, which can be categorised as aeronautical and non-aeronautical revenue.

Non-aeronautical revenue includes retail, and passengers are spending more time in airport terminals due to heightened security measures, meaning they are more likely to spend money in airport shops. Airport retail has evolved from chocolate bars and magazines to designer clothing and locally produced goods, with retailers able to customise their offerings with geo-specific targeting. In 2013, U.S. airports generated $587 million from food and beverage sales, or about 7.2% of non-aeronautical revenue.

Airports can also generate income through property development, such as constructing hotels, office buildings and commercial real estate on airport property.

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