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Maximising non-aero revenue: Why understanding your passengers is the key to airport profitability

30 Jan 2025
Marc Ive
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Non-aeronautical revenue has long been a critical pillar of airport income. Yet, recent data from ACI World highlights a sobering reality: 

  • Global passenger numbers in 2023 were only 5% below pre-COVID levels, but non-aero revenue lagged a significant 21% behind.
  • Retail revenue was down 24% compared to 2019, despite airport property and real estate values growing by 2% globally.
  • Non-aero revenue’s share of total airport revenue dropped from 40% in 2019 to 37% in 2023. 

These figures underline a clear message: traditional approaches to non-aeronautical revenue generation are no longer sufficient. 

Airports must pivot towards a passenger-centric strategy to unlock new streams of income, create resilient business models, and thrive in a highly competitive market. By understanding your passengers and aligning your non-aero offerings with their behaviours and expectations, you can elevate your airport’s revenue potential. Here’s how. 

How does non-aero make money for airports? 

Non-aeronautical income encompasses a wide range of revenue streams, including retail, food and beverage, parking, lounge access, and ancillary services such as personal shoppers or fast track security. While aviation revenue remains essential, non-aero activities help to sustain airport profitability, offering higher margins and more predictable income streams. 

Key statistics highlight the financial impact of non-aero revenue: 

  • London Heathrow Airport’s retail revenue increased by 23.8% to £698 million in 2023 (due to higher departing passengers, car parking revenue, terminal drop-off income, premium passenger services and the mix of retail services available.)

  • Parking revenue across the UK’s four largest airports—Heathrow, Gatwick, Manchester, and Stansted—totalled nearly £700 million in 2023, equating to approximately £2 million daily.

  • The non-aeronautical revenue market size was estimated at 62.39 (USD Billion) in 2024 and is expected to grow to 118.5 (USD Billion) by 2032. 

These figures underscore the importance of optimising non-aero revenue streams to maintain profitability and adapt to changing passenger dynamics. 

Gaining a deeper insight into passenger personas 

Understanding the distinct needs and preferences of different passenger personas is essential for driving non-aero revenue. Each group brings unique expectations to the airport experience, and tailoring your offerings accordingly can significantly enhance engagement and spending. 

Business travellers: These passengers value efficiency, convenience, and premium services. Fast track security lanes, lounge access with quiet workspaces, and seamless parking options cater to their need for time-saving solutions. Personalised promotions for last-minute gifts or pre-order dining options can also drive additional revenue. 

Leisure travellers: Leisure passengers, often travelling for holidays or family visits, are more likely to view the airport as part of their travel experience. They are drawn to immersive retail experiences, local food and beverage options, and services that enhance comfort, such as beauty appointments or personal shoppers. Offering tailored promotions, such as discounts on local goods or pre-booked parking packages, can encourage spending. 

Families: Families seek stress-free journeys with minimal friction. Convenient parking, kid-friendly food options, and entertainment zones in lounges can transform their airport experience. Promotions that bundle parking with retail or food and beverage discounts can appeal to budget-conscious family travellers. 

Luxury seekers: These passengers prioritise exclusivity and high-end experiences. Premium lounge services, VIP concierge, bespoke shopping appointments, and fine dining options resonate strongly with this demographic. Personalised offers based on past spending behaviour, such as access to special events or exclusive retail products, can foster loyalty and drive high-margin revenue. 

By identifying these personas and tailoring non-aero offerings to their needs, airports can create targeted strategies that maximise revenue and improve the overall passenger experience. 

Addressing passenger friction points 

Understanding passenger pain points is also critical for converting operational challenges into revenue-generating opportunities. Long wait times, a lack of convenience, and unclear processes are frequent sources of frustration that can be addressed with tailored services.  

For instance: 

Fast track security lanes: Alleviate congestion while offering passengers a premium, time-saving option they are willing to pay for. 

Pre-order services: Enable passengers to pre-order food, beverages, or retail items, optimising their time in the terminal and enhancing convenience. 

Rezcomm’s Data Observability dashboards provide real-time insights into operational bottlenecks. By identifying peak demand periods for security lanes or car parks, airports can dynamically allocate resources to minimise disruptions and enhance the passenger experience. This not only reduces friction but also drives incremental revenue through premium services and improved customer satisfaction. 

Non-aeronautical sectors to consider 

Every customer interaction, before, during, and after their journey through the airport, is an opportunity to drive revenue. By identifying, optimising, and monetising each touchpoint, airports can transform passenger engagement into measurable financial gains. 

The following key sectors demonstrate how every passenger touchpoint can be transformed into a high-value revenue opportunity: 

Airport Parking 

Parking is one of the most important sources of non-aero revenue, particularly for regional and smaller airports. While some airports outsource their car parks to third-party operators, those that manage their own bookings gain significant competitive and financial advantages. Rezcomm provides the tools airports need to take control of their parking operations. With data observability tools that integrate seamlessly with car park management and online booking systems, airports can monitor real-time occupancy, dynamically allocate resources, and enhance the passenger experience. This not only drives operational efficiency but also maximises profitability. 

Food and Beverage 

A substantial number of passengers use food and drink concessions during their airport journey, making food and beverage a cornerstone of non-aero revenue. Airports should position these offerings as a major attraction rather than an afterthought. Passengers view the terminal as the start of their holiday, and local partnerships can bring individuality and a sense of place to the experience. Offering pre-order options, gate or lounge delivery, and exclusive promotions encourages passengers to dine on-site rather than elsewhere. Rezcomm’s solutions enable airports to create seamless pre-order and gate delivery systems, plus marketing campaigns that drive both revenue and satisfaction. 

Retail 

Retail remains a highly lucrative avenue for non-aero revenue. Airports can enhance retail spending by introducing browse-and-buy services, encouraging passengers to order items before arriving at the terminal and collect them in-store. Pop-up stores and personalised offers based on passenger data create unique experiences that drive engagement. Linking retail promotions with food and beverage deals further encourages widespread spending. Rezcomm Marketplace delivers these initiatives with precision, leveraging data to personalise offers and maximise conversion rates. 

Lounge 

Lounge access is increasingly seen as a premium service that enhances the passenger journey. By utilising Rezcomm’s Commercial BI dashboards, airports can gain real-time insights into lounge performance, optimising pricing, capacity, and amenities. These insights improve profitability, and enable airports to deliver enhanced lounge services to build loyalty, encourage repeat visits, and boost revenue. 

Fast Track 

Fast track security lanes offer passengers a streamlined journey through the airport, catering to time-conscious travellers. Using real-time data and analytics, airports can optimise staffing, monitor demand and dynamically adjust resources. This ensures minimal wait times and maximum passenger satisfaction, turning fast track into a high-margin service that delivers both financial and operational benefits. 

Emerging trends in non-aero revenue 

As passenger behaviours and technological innovations evolve, airports must adapt to emerging trends to unlock new opportunities for non-aero revenue. Each trend is deeply tied to understanding passenger expectations and preferences, providing airports with the opportunity to cater to evolving demands and capture untapped revenue streams: 

Subscription models: Predictable revenue streams through subscription-based services for parking, lounge access, and fast track security. These models appeal to frequent travellers, particularly business passengers, who value consistency and convenience. 

Virtual and Augmented Reality: Enhancing retail and entertainment with AR-enabled wayfinding, virtual fitting rooms, and immersive displays. These tools provide personalised, immersive shopping experiences that cater to tech-savvy and leisure passengers seeking novelty. 

Hyperpersonalisation: Leveraging AI and machine learning to deliver tailored offers in real time. By understanding individual preferences through data, airports can provide passengers with bespoke recommendations for retail, dining, and other services, increasing satisfaction and spend. 

Pop-up concepts: Temporary retail and food and beverage installations that attract brands and engage passengers. These dynamic spaces cater to changing passenger demographics and trends, creating excitement and encouraging impulse purchases. 

By staying ahead of these trends, airports can create innovative, futureproof strategies that cater to evolving passenger needs while maximising non-aero revenue. 

Broader business case 

Investing in understanding passenger personas, pain points, behaviour and trends is not just about improving customer satisfaction; it delivers measurable financial benefits. Predictive analytics, business intelligence and data observability tools provide actionable insights that empower airports to optimise operations, reduce costs, and boost revenue. For example, dynamically adjusting pricing for parking or lounge access during peak periods can increase yield without additional capital expenditure. 

The ROI of these investments is clear: by minimising inefficiencies and capitalising on passenger trends, airports can unlock new revenue streams while enhancing operational agility. Rezcomm’s platforms offer centralised dashboards and real-time data, supporting executives in making informed decisions that directly impact the bottom line. Investing in these technologies positions your airport for success today while futureproofing it against evolving passenger expectations. 

Want to see these tools in action? Watch our video to discover how Rezcomm empowers airports to transform non-aero revenue strategies with cutting-edge technology and proven solutions. 

The future of airports 

Despite the pressure of lower margins compared to pre-COVID levels, airports are positioned to become dynamic, high-performing hubs of innovation and profitability. By unlocking non-aero revenue at every touch point and optimising the entire customer journey, airports can create resilient and scalable business models that adapt to shifting market demands. Observability and business intelligence are the cornerstone technologies for driving smarter decisions, unlocking untapped revenue opportunities, and ensuring alignment with evolving passenger expectations.  

Equip your airport with the tools to thrive in a highly competitive industry. Rezcomm’s Business brochure provides a strategic roadmap to boost non-aero revenue, streamline operations, and exceed passenger expectations. Download it today to unlock actionable insights and proven solutions designed for airport executives.