The project involved development of a strategy for setting new commercial, catering and service outlets in the new terminal at Krakow Airport. The objective of our work included development of solutions which optimise revenue streams for the airport, take into account passenger experience, future flows of passengers, quality of service and Krakow Airport image.
Scope of our work
Scope of our cooperation with the Krakow Airport team included five interrelated areas:
- Determination of optimal physical arrangement of commercial outlets in the terminal.
- Recommendation of an effective business model for non-aviation activity, especially master concession vs. individual concessions.
- Development of documentation for contractors, including template of a contract and manual for contractors.
- Preparation of the bidding procedure.
- Forecasting revenue from non-aviation business in the new terminal.
Our approach
We divided our work into two stages. In stage one an optimal business model for non-aviation activities was developed. Based on this recommended model we designed the optimal layout of commercial areas in the new terminal.
In stage two we prepared templates of required documents, including a contract with concessionaires and a manual for contractors, taking into account the recommended business model. Our next task included forecasting revenue streams from commercial activity in the terminal.
Krakow Airport was in a unique situation due to the new terminal development process, which created an exceptional opportunity to implement a new, innovative approach to commercial activities at the airport. The prime challenge in the project was to recommend a new, optimal layout of the outlets at a stage when planning and construction works were well advanced.
Value and benefits
Non-aviation revenue becomes of vital importance, especially for regional airports, where volume of low cost traffic is significant and where dynamics of development can be maintained only if attractive airports charges rates are proposed. These airports must maximize non-aviation revenue streams to allow for financially attractive commercial offer for carriers, including LCCs, which in turn may result in increased numbers of passengers and revenues from aviation activities.
We believe that the key element in developing non-aviation, commercial offer at any airport is passenger experience. Thus, understanding of passengers, their interests and needs is a must.
Important finding
Airside commercial locations are generally preferred to landside locations wherever possible, as passengers are more relaxed once security procedures are completed. Therefore, the airside is much more attractive from the point of view of retail and catering – passengers tend to spend more money in this area as a result of having more time and being less stressed.
