Introduction

In today's dynamic aviation landscape, Airport Concessions and Retail Strategy have transcended mere ancillary services to become a cornerstone of an airport's financial viability and overall passenger experience. Beyond traditional aeronautical fees, non-aeronautical revenues generated from retail, food and beverage, parking, and other services provide a crucial and often growing stream of income that supports infrastructure development, enhances customer satisfaction, and builds competitive advantage. Optimizing this commercial ecosystem requires a deep understanding of passenger demographics, spending behaviors, and the ever-evolving trends in the retail and hospitality sectors. Failing to develop a robust and passenger-centric concessions strategy can lead to significant lost revenue opportunities and a suboptimal travel experience. This essential training course focuses on equipping aviation professionals with the expertise to excel in Airport Concessions and Retail Strategy.

This intensive training course is meticulously designed to empower airport commercial managers, business development teams, retail operations managers, marketing professionals, and finance executives with the theoretical understanding and practical tools necessary to develop, implement, and manage highly profitable and passenger-centric concession programs. Participants will gain a deep understanding of market research, concession planning, contract negotiation, performance monitoring, and the integration of technology to enhance the retail journey. The course will delve into topics such as tenant mix optimization, duty-free operations, digital retail strategies, customer segmentation, space utilization, and the impact of airport design on commercial revenue. By mastering the principles and methodologies of Airport Concessions and Retail Strategy, participants will be prepared to unlock significant non-aeronautical revenue potential, elevate the passenger experience, and contribute to their airport's sustainable financial growth.

Duration: 5 Days

Target Audience

• Airport Commercial Managers and Directors
• Airport Business Development Managers
• Retail and Concessions Managers
• Marketing and Customer Experience Professionals
• Airport Finance Directors and Analysts
• Property and Real Estate Managers
• Consultants specializing in Airport Commercial Development
• Airport Operations Managers (for commercial awareness)
• Airline Professionals interested in airport commercial aspects
• Brand Managers and Retailers seeking to enter airport environments

Objectives

• Understand the strategic importance of non-aeronautical revenue for airport sustainability.
• Learn to analyze passenger demographics and spending patterns to inform retail strategy.
• Acquire skills in developing an optimal concession mix that caters to diverse passenger needs.
• Comprehend the key elements of successful concession contract negotiation and management.
• Explore various retail formats and concepts suitable for the airport environment.
• Understand the role of technology and digitalization in enhancing airport retail.
• Gain insights into marketing and branding strategies to drive commercial performance.
• Develop a framework for monitoring and optimizing concession performance continuously.

Course Content

Module 1: The Airport as a Commercial Hub

• Evolution of airport revenue models: from aeronautical to non-aeronautical dominance.
• The "airport city" and "aerotropolis" concepts.
• Importance of non-aeronautical revenue streams for airport financial health.
• Overview of key non-aeronautical revenue categories: retail, F&B, parking, advertising, property.
• Global trends and benchmarks in airport commercial development.

Module 2: Understanding the Airport Passenger and Market Analysis

• Passenger segmentation: leisure, business, VFR, domestic, international, transit.
• Analyzing passenger dwell time, flow, and purchasing behavior.
• Market research methodologies for identifying consumer preferences and trends.
• Competitive analysis: benchmarking against peer airports and other retail environments.
• Identifying market gaps and opportunities for new retail concepts.

Module 3: Concession Mix Development and Space Optimization

• Principles of designing a balanced and appealing retail and F&B mix.
• Factors influencing concession selection: brand recognition, local relevance, passenger needs.
• Maximizing space utilization and optimizing retail layouts within the terminal.
• Integrating digital touchpoints with physical retail spaces.
• Creating unique and memorable passenger experiences through design.

Module 4: Concession Contract Models and Negotiation

• Different types of concession agreements: minimum annual guarantee (MAG) vs. percentage rent.
• Hybrid models and their advantages/disadvantages.
• Key terms and conditions in concession contracts: term, rent, investment, performance clauses.
• Strategies for effective negotiation with potential concessionaires.
• Legal and regulatory considerations in concession contracting.

Module 5: Retail Operations and Merchandising in Airports

• Best practices in airport retail operations: staffing, inventory management, customer service.
• Visual merchandising strategies for attracting passenger attention.
• Duty-free and travel retail specifics: regulations, product categories, target markets.
• Challenges of operating in a secure and high-traffic environment.
• Supply chain management and logistics for airport concessions.

Module 6: Pricing Strategies and Revenue Management

• Developing effective pricing strategies for airport retail and F&B.
• Understanding price elasticity of demand in the airport environment.
• Dynamic pricing models for parking and other services.
• Leveraging data analytics for revenue optimization and yield management.
• Identifying opportunities for ancillary revenue generation.

Module 7: Marketing, Branding, and Digital Strategy for Airport Retail

• Creating a compelling brand identity for the airport's commercial offerings.
• Digital marketing channels: airport websites, mobile apps, social media.
• Personalized marketing campaigns based on passenger data.
• Loyalty programs and customer relationship management (CRM) for driving spend.
• Leveraging technology for immersive retail experiences (e.g., AR, VR, interactive displays).

Module 8: Performance Monitoring, Risk Management, and Future Trends

• Key Performance Indicators (KPIs) for evaluating concession performance (e.g., Spend per Pax, conversion rates).
• Regular performance reviews, audits, and compliance checks.
• Managing risks in concessions: economic downturns, changes in passenger profiles, operational disruptions.
• Innovation in airport concessions: pop-up stores, experiential retail, automated retail.
• The future of airport commercial strategy: sustainability, customization, and seamless integration.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training