Optimising Big Data Analytics for Non-Aeronautical Activity
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Concessionaire Analyzer+ (CA+) is a software solution that helps airports optimize their non-aeronautical revenues through automated data collection, management of concession agreements, billing, and data analytics. CA+ collects detailed sales data from concessions, links it to operational data like passenger numbers, and provides insights to both airports and concessions. This allows airports to better understand passenger spending, benchmark concession performance, and strategize how to increase their profitable non-aeronautical business.
Optimising Big Data Analytics for Non-Aeronautical Activity
- 1. Optimizing Big Data Analytics to Achieve Customer Insights and Strategizing non- Aeronautical Activity for Maximized Revenue John de Giorgio CEO – CA Plus Limited jdg@caplus.aero
- 2. Concessionaire Analyzer+ (CA+) is a software solution that helps airports to manage, control and boost their non-aeronautical revenues through: automated collection of detailed sales data management of concession agreements billing provision of insight through data analytics
- 3. Big Data Extremely large data sets that may be analysed computationally to reveal patterns, trends, and associations, especially relating to human behaviour and interactions. ‘much IT investment is going towards managing and maintaining big data’ Oxford Dictionary On-line edition
- 4. Big Data Extremely large data sets that may be analysed computationally to reveal patterns, trends, and associations, especially relating to human behaviour and interactions. ‘much IT investment is going towards managing and maintaining big data’ Oxford Dictionary
- 5. 40% Non- Aeronautical 56% Aeronautical 4% Non-Aeronautical Sector Aeronautical Sector Non-Operating Revenue Non-aeronautical sector revenues reached $58b in 2014* • Non-aeronautical sector usually more profitable • Contribution to EBIDTA significantly higher * ACI Economics Report 2015 – Published Mar 2016 Airport Revenues
- 7. Aeronautical Revenues Increase passenger numbers Increase charges Decrease costs
- 8. Passengers are costly the more passengers, the more….. check-ins security lanes gates aero-bridges ground handling equipment transport facilities car parks staff possibly even runways etc. Cost of revenue acquisition is high
- 9. Increasing non-Aeronautical Revenues Increasing retail and F&B revenues through expansion • Relies on passenger growth • Diseconomies of scale • Capital intensive Increasing car park revenues • Relies on passenger growth • Capital intensive Business parks, hotels, lounges, airport cities • Relies on passenger growth • Capital intensive Cost of revenue acquisition is high
- 10. Aviation 67% Non-Aviation 33% Aviation 59%Non-Aviation 41% Non-Aviation 76% Aviation 24% Source: Kinetic Consultancy from Schiphol Group Annual Report 2015 Schipol Group Airport Results
- 14. Success factors for Big Data Analytics 1. Data 2. Analysis of data to provide insight 3. Opportunity to improve 14
- 15. Data Sources Concession sales data Contract information • Revenue shares • MAGs Outlet locational data Operational data • Flights & code shares • No. of pax • Terminal &gate Passenger counting data Queue waiting measurement 15
- 16. Convince concessionaires of value of data sharing Solve technical issues re collecting detailed sales data from heterogeneous environment Other technical issues • Integration with operational systems • Integration to people counting 16 What are the challenges?
- 17. Data Collection situation Data collected monthly or weekly • data latency Insufficient detail • little/no transaction level data • sales totals • sometimes by category Limited automation • Concessionaires usually report by email • Significant effort spent on collection and chasing • High dependence on Excel™ by commercial team • Process lacks control, auditing and monitoring 17
- 18. Data Collection Capabilities – CA+
- 20. 20 1. automate sales data collection 2. collect more detailed data for improved analysis and insight 3. collect fresher data 4. improve control & auditing of concessionaires 5. increase productivity of processes 6. combine sales data with operational data for improved insight 7. share analysis with concessionaires for broader performance analysis 8. boost non-aero revenues What’s are the Opportunities?
- 21. STORY TIME
- 22. Increase data richness Transactional data 22
- 25. Transaction effect Understand sales patterns by date, day, time Sales by category etc. 25
- 26. Impact of Digital Advertising 26
- 28. Link to operational systems
- 31. Link sales to flights Correlate with number of pax on flight – Passenger Spend Rate (PSR) Analyse sales & revenue per flight Improve route development Improve negotiations with carriers Improve tendering process 31
- 32. PSR by Destination Route Development 32
- 35. PSR BY GATE 35
- 36. Benchmark performance within category
- 37. Budgeting 37
- 40. 40 ROI DRIVERS Control Automation Insight
- 41. •Impose data sharing obligations in your contracts • Data is key •Spread your contract expiry dates •This is not a BI project • Contract management • Sales data collection • Integration with operational systems • Billing • Integration with ERP • BI
- 42. Control, Manage and Boost Non-Aeronautical Revenues www.caplus.aero Questions?