Skift Take
The pandemic and the push for sustainability are forcing airports to think beyond package. The more creative, the larger the win, it seems. But are some of these revenue-generating ideas here for the long run or just until travel recuperates?
Ruthy Muñoz
Pittsburgh global airport recently ended up being an island to itself by going off the grid and installing micro-grids, powered by natural gas at its airport campus in its mission to produce its electricity– and to set an example for the market.
The move to self-powering the Pittsburgh airport ensures resiliency, lowers expenses, and enhances its sustainability footprint, Christina Cassotis, CEO of Allegheny County Airport Authority, informed Skift in a 2019 interview about the increase of small airports.
This is simply among several tasks, including a buildout for a brand-new airport slated to open in 2025, that the western Pennsylvania airport is working on to diversify its earnings.
Pittsburgh airport and the University of Pittsburg established “Area 91,” an additive manufacturing production school program at the airport’s innovation school. The advancements connect and condense all parts of the 3D printing and additive manufacturing supply chain into one production ecosystem.
Currently companies are moving operations to Area 91. Wabtec Corporation, a global supplier of value-added services, devices, digital options, and systems to transit rails and freight, is renting more than 11,000 square feet at the neighborhood.
Will other airports follow Pittsburgh’s lead in diversifying earnings streams?
In California’s Humboldt county where roadways are often closed due to mudslides and wildfires, building and construction for the state’s first multi-customer micro-grid has actually commenced at the California Redwood Coast– Humboldt County Airport. The $11.6 million job is being moneyed by 2 separate state agencies and is projected to be functional in November, according to the Schatz Center, the prime specialist of this task.
While San Diego airport isn’t thinking about carrying out a true micro-grid, the airport has executed a 12k energy distribution loop to power all airport centers while decreasing its intake and energy expenses. It likewise just recently switched to one hundred percent eco-friendly and one hundred percent carbon-free energy to cut costs through the non-profit San Diego Neighborhood.
“We’re expecting a cost savings of about $700,000 when compared to the approximated fiscal year 2022 budget plan for San Diego Gas and Electric’s EcoChoice program,” an airport representative said.
In Addition, San Diego airport has an airport innovation lab offering organizations interested in serving the air travel industry an opportunity to develop company designs and test services best fit for an airport environment.
By working with numerous business through its airport development lab in establishing brand-new services and amenities to improve the client experience, San Diego airport think it will lead to revenue-generating chances, she stated.
For instance, given the significant impacts Covid-19 has actually had worldwide, there is a demand from guests for touchless and contactless operations, the airport is working with a friend in finding options to boost the touchless journey or advance line management.
“By implementing services that make the guest experience as seamless as possible we have the chance for financial, ecological, and safety gains,” said the San Diego airport spokesperson.
In assistance of its terminal concessions, the Orange County airport introduced the OC AirPass program, to allow non-ticketed passengers the chance to shop to pass by security as was the case before 9/11 to eat or shop.
Orange County airport stated it developed a “cocktails, beer, and red wine to-go” program enabling guests to take their drink purchases to seating areas in the terminal.
The program supports restaurants with earnings while allowing for physical distancing and less crowding in dining establishments, the Orange County airport spokesperson said.
The Southern California airport also introduced a brand-new program of contactless food ordering with gate delivery, getting rid of touchpoints through making use of mobile apps to buy, pay, and have the meal delivered to the traveler’s gate, she said.
In South Carolina, the Horry County Department of Airports has actually implemented several land-use efforts leading to profits diversity and effective land uses at Myrtle Beach International airport.
For example, after getting a previous golf course within the runway protection zone of Runway 36, the county employed a golf management company to manage the day to day operations and Myrtle Beach airport gathers a little percentage of the revenue created by management’s business for operating the Aero Club course, he stated.
Another way, the Myrtle Beach airport has been creating income is through a 2019 collaboration with Santee Cooper, a local energy business to establish a solar generation facility on an existing garbage dump site situated on airport property. The Horry County Department of airports said the arrangement is in the kind of a land lease, based on the reasonable market price of the property.
Wichita airport said it has an advantage for revenue sourcing that a lot of other airports do not.
Which is centers, the spokesperson said. While lots of airports own the land, but not the centers and are limited to sourcing revenue only from the land, Wichita airport owns both.
That benefit increases the capacity of significant revenue generation when leases reach completion of the no-facility-rent-period which differs based on several elements including the occupant’s prior investment in building the center, she stated.
In Connecticut, Bradley airport’s main source of non-aeronautical earnings comes from the airport’s parking operation and concession partners.
The airport is constantly seeking chances to diversify its total revenue streams. However, over the past year some of the focus has been on discovering how to potentially enhance or alter the non-aeronautical related services to drive additional revenue, a Bradley airport representative stated.