Sunday, 13 November 2011

Dublin Airport: The Ancillary Revenue Potential ©


The line of aircraft on runway 29 for the UEFA Cup Final
                                                                     
The ACI DG Angela Gittens stated “Non-aeronautical revenues critically determine the financial viability of an airport as they tend to generate higher profit margins than aeronautical activities” (Insight airport world June 2011).

This blog article will examine the potential of Dublin Airport to grow new ancillary revenue streams. should be realized in the current environment, as core traffic continues to fall, now is the time to develop new revenue streams utilizing existing infrastructure, taping into Meeter and Greeters, local residents and visitor’s market segments.

Therefore there are potential opportunities to develop new ancillary revenue streams adding value to the existing customer offering, firstly the airport should considering developing aircraft viewing facilities in Terminal One, following the successful model developed by Frankfurt Main, its viewing terrace is one of the top visitor attractions in the country. Schiphol and Zurich airports have very successful viewing terraces open all year round.

To tap the potential of the meeter and greeter market segment, the option to re-develop the existing space and new retail concept to capture new revenue streams utilizing existing space on the mezzanine level needs to be considered. Frankfurt Main charges €4 per adult for admission to the viewing terrace (Fraport). In tandem in-house conference facilities could be developed as part of the product mix.


To appeal local residents the retail offering should be revised with its service partner to offer a very competitive product versus competition in the Fingal area, to attract more footfall to the terminal to generate additional revenue. This could be further enhanced by weekend operation of a  local food and gift market as this been done in the past utilizing the available space on the mezzaine level. This concept could be developed with Fingal County Enterprise board and County Council to showcase products and services.

The Dublin Airport Authority should also consider developing viewing facilities on the perimeter road at the existing Runway 28 car park, jointly with the Fingal County Council, ideally by extending and landscaping the existing car park using the Manchester Viewing Park as a template on a smaller scale.



The UEFA Cup Final Porto Vs Barga on the 18th of May saw over 3,000 aviation enuthaists from all over Europe travel to Dublin , which was additional spin-off business , when 65 additional charter and executive flights visited , also four US Marines CH-47's arrived in advance of the visit of US President Obama. Therefore creating a good first impression could generate repeat business from this market segment. 
                                                                               

'The Mound at Runway 28' on UEFA Cup day 18th May 2011
 Picture
(C)Copyright Michael Kelly
There is an opportunity to develop an Aviation Museum at Castlemoat House exploting the full potential of the site, which is ideally located to become a new visitor attraction in Fingal with a strong aviation heritage leveraging social media to drive visitor numbers, it could become a magnet to attract the young generation into the aviation industry. Could this venture be done in partnership with airport based companies and volunteers???.

In conclusion their is a hidden opportunity at Dublin Airport waiting to be developed, which will further enhance the customer experience and generate new revenue streams.


Irish Aviation Research Institute © 13th November 2011 All Rights Reserved.

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