Optimizing Big Data Analytics to Achieve Customer Insights and Strategizing non-Aeronautical Activity for Maximized Revenue

John de GiorgioCEO –CA Plus Limitedjdg@caplus.aero

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 datamanagement of concession agreements billingprovision of insight through data analytics

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 DictionaryOn-line edition

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

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

Low Hanging Fruit

Aeronautical Revenues

Increase passenger numbers

Increase charges

Decrease costs

Passengers are costlythe 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

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

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

Low Hanging Fruit

Optimisationof

Non-Aeronautical Performance

Data Insight Action

Success factors for Big Data Analytics

1. Data

2. Analysis of data to provide insight

3. Opportunity to improve

14

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

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?

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

Data Collection Capabilities –CA+

19Concessionaire’s

Back-OfficeCA+ Capture

Server

Analysis

CA+ Server

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?

STORY TIME

Increase data richnessTransactional data

22

Aggregation of Data

23

Aggregation of Data

24

Transaction effect

Understand sales patterns by date, day, time

Sales by category etc.

25

Impact of Digital Advertising

26

Special Events

27

Link to operational systems

Passenger Spend Rates

Scan Boarding Passes

30

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

PSR by DestinationRoute Development

32

Passenger Spend Rates

Passenger Spend Rates

PSR BY GATE

35

Benchmark performance within category

Budgeting

37

Share with Concessionaires

Tactical InsightLAGs example

39

40

ROI DRIVERS

Control Automation Insight

• 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

Control, Manage and Boost

Non-Aeronautical Revenues

www.caplus.aero

Questions?