IDEAS home Printed from https://ideas.repec.org/a/aza/jam000/y2014v8i4p327-333.html
   My bibliography  Save this article

What are the key considerations for an airport in implementing a direct channel for car park and ancillary pre-booking, and what are the potential resulting incremental revenue benefi ts?

Author

Listed:
  • Keefe, Jon

Abstract

In the last 10 years adverse market conditions, increased competition amongst airports, and pressure from low cost carriers to reduce their costs has meant for airports aeronautical revenues do not cover their associated costs. It is therefore clear non-aeronautical revenues, such as parking, critically determine the financial viability of an airport. However, non-aeronautical revenues are also under threat because off-site car parks are sprouting up adjacent to airports, undercutting airport prices. Moreover airlines and other resellers cross sell airport parking, grabbing a portion of airport revenue. Airports must therefore implement strategies to defend, increase and create new streams of non-aeronautical revenue. One area where airports can succeed in creating new and incremental nonaeronautical income is through directly selling car parking and ancillaries to passengers before they arrive at the airport. This paper reviews strategies that airports can implement in pre-book parking. It exemplifies how, with best of breed car parking and ancillary pre-booking software that allows yield management of pricing based on (i) demand for spaces (ii) time of arrival at the car park and (iii) how far in advance a booking is made, then significant incremental and new revenues can be achieved.

Suggested Citation

  • Keefe, Jon, 2014. "What are the key considerations for an airport in implementing a direct channel for car park and ancillary pre-booking, and what are the potential resulting incremental revenue benefi ts?," Journal of Airport Management, Henry Stewart Publications, vol. 8(4), pages 327-333, October.
  • Handle: RePEc:aza:jam000:y:2014:v:8:i:4:p:327-333
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/822/download/
    Download Restriction: Requires a paid subscription for full access.

    File URL: https://hstalks.com/article/822/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mahpour, Alireza & Asadi, Majid & Baghestani, Amirhossein, 2024. "Are supply and demand the main key drivers of airport parking prices? The quantitative study," Journal of Air Transport Management, Elsevier, vol. 114(C).

    More about this item

    Keywords

    pre-book car parking software; yield management; non-aeronautical revenue; AeroParker; hourly pricing; lead-time pricing; bucket pricing;
    All these keywords.

    JEL classification:

    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:jam000:y:2014:v:8:i:4:p:327-333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.