BUDAPEST AIRPORT


deliver a keynote presentation in a nod to the airline’s continued pursuit of exploring new ancillary income avenues. In concluding remarks, Jandu


June 2017 20


YEARS 1997-2017


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ultimately if an airport can raise more non-aeronautical income, this bodes well for all airlines as the need to raise aeronautical charges year after year reduces,” he added. Global airline ancillary revenues


hit an estimated $67.4bn last year, according to research from IdeaWorksCompany and CarTrawler, with airlines becoming rapidly attuned to the merits of tapping into the entire passenger lifecycle from booking, to travel, to gate.


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Growing the whole pie However, a closer look reveals that only $22.5bn of this was derived from non-fee activity, such as frequent flyer mile sales and commissions earned from hotel accommodation and car rentals. Jandu agrees that there is room to grow this share – which includes sales from retail – with all stakeholders engaged. “I do not think we are far away


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from having partnership style ancillary relations between multiple stakeholders so that everyone can optimise their earnings,” he comments. “All progressive airlines are always


looking for new income streams and if this can be done with the least amount of manual work possible to appeal to the millennial generation and growing number of young Asian


“The key is to make the trial as much as possible incremental to the participants through extensive analysis on existing route spending.”


Kam Jandu, BARTA and Budapest Airport 24 TRBUSINESS


Ryanair’s show of support In-airport app Flio, which boasts a presence across 900 airports, has been appointed technology partner for BARTA and will act as a key enabler in driving improved digital connectivity. BUD sees Flio becoming more


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involved as the first test begins, initially involving voucher or coupon exchanges, with its role set to become more integral as close scientific trials with narrow audiences on specific routes ensue. Such dialogues related to using


technology to spur ancillaries is gathering momentum ahead of the BARTA unveil at June’s Future Travel Experience (FTE) Ancillary conference in Dublin. The event has already received


a timely fillip with news that Ryanair CEO Michael O’Leary will


TRBusiness has been appointed official media partner for BARTA and will chair a session entitled, ‘How can we enhance customer experiences and revenue opportunities during the airport phase of travel’.


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Gebr Heinemann has devised some ‘very workable scenarios’ to be shared with Wizz Air.


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travellers, then digital technology must play a part in the process.” BARTA’s format is designed to go


Budapest Airport facilitates real business model changes... p21 Kam Jandu


beyond the existing trinity model by adding an airline to the mix, with ancillaries such as other retailers and F&B operators also having the chance to become involved in the future. “In the last three years, we have


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acknowledged the importance that all stakeholders should pay to studying the entire passenger journey from the time they think to travel, to the journey itself. Utilising tools such as boarding


card technology, WiFi hotspots and tracking opens up the opportunity to grasp and exploit information on passenger profiles, spend and behavioural data. “Airlines know the customer


before anyone else does, while the brands, retailers, airports and technology providers do not come into contact until the journey commences. “There has to be a better way


TALLINK’S MAGNUS SKJÖRSHAMMER | TFWA ASPAC REVIEW | SKYSERVICE FORUM | FTE & BARTA PREVIEW | ADVANTAGE INTERNATIONAL | L’ORÉAL | ESTÉE LAUDER | COTY | P&G | LVMH | CHANEL | M1ND-SET | PVM | MARS | RICOLA | HARIBO | FERRERO | NOW & THEN


run several parking promotions with airlines, where some of them have offered complimentary short term parking at BUD, if they buy a business class fare for example,” says Jandu. “This has worked reasonably


well and given the extensions to our parking portfolio, we will continue with such promotions later this year too.”


we can all work together to share the outputs of an even bigger pie, resulting in more sales, more products sold, and more inflight bookings made if the retailer offers a route specific offer, and finally, integrated


communication


through one application as opposed to four or five is part of the end game.” BARTA offers a very real olive


branch for airports and airlines to address the often isolationist stances from both quarters when it comes to engaging on initiatives involving commercial elements. “This conversation wouldn’t have


taken place two to three years ago as everyone was competing for customer spends, but now there is a degree of maturity.” “Generally, people think its all or


nothing; we now need to take a leap of faith and dissect it a bit more.” «


The first BARTA initiative concepts are set to be launched at Future Travel Experience Ancillary in Dublin on 26-27 June.


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