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AIRPORTS • YIELD MANAGEMENT • PRICING • AIRLINE SPECIALISTS

Yield Tactics offers comprehensive consulting services tailored specifically for airports, providing invaluable expertise in various areas crucial for maximizing revenue and enhancing customer satisfaction.

Our services encompass the development of robust route business plans aimed attracting new airlines, ensuring long-term profitability and sustainability.

Additionally, we specialize in yield management strategies, that particularly make sense of maximizing car park revenues .

Our team also excels in designing and implementing loyalty programs tailored to airport clientele, fostering customer retention and engagement.

Furthermore, we provide expertise in retail pricing strategies, assisting airports in developing dynamic pricing models to maximize non-aeronautical revenue while meeting the diverse needs of travelers.

With Yield Tactics as your strategic partner, airports can thrive in today's competitive landscape, maximizing your revenue, while delivering exceptional experiences to passengers and visitors alike.

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With 15 years’ average experience working for travel companies of various sizes on 4 continents, Yield Tactics’ Senior Consultants have experienced in their careers most of the pricing, commercial and revenue management challenges you are facing today. Fully operational for consultancy, they have the agility to propose solutions that fit your commercial organization structure and budget.

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When you have a challenging business decision to make, Yield Tactics’ Senior Consultants are available for advisory services on an ad hoc basis, as a long-term partnership plan, or as part of a specific project.

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Yield Tactics’ services include classroom and e-learning courses. Our customized training solutions are tailored to your business needs in order to fit your business challenges, internal policies, and geographical area.

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When revenue management and commercial teams struggle with performance, coaching is a powerful tool with extremely high ROI. Conducted online through video calls over a long period of time, Yield Tactics coaching services improve the soft skills and mindset of your teams who are running into difficulty, meeting all the demands of their position, and empowering them to be comfortable and effective in highly demanding work environments.

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Yield Tactics’ Senior Consultants transform your people and organization, create processes, establish the best revenue management practices, and maximize value of data and technology, so that you gain sustainable competitive advantages.

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By including Yield Tactics in all your RFI and RFP, you are ensured to receive in a short time a solution proposal tailored to your needs that will deliver predictable and timely business results.

Yield Tactics’ Senior Consultants carefully study all business solicitations and respond positively to those that are a good fit for the skills of our available consultants. They particularly excel in delivering high return on investment for short-duration projects, combining smartly on-site and remote presence. In addition to your core requirements, we can propose a remote preparation work package, as well as implementation follow-up, coaching and post-service health check.

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Airports embrace pricing

Airline routes studies, retail pricing, parking revenue management, loyalty program

In the heart of an ever-evolving airport industry, the subtle art of pricing emerges as a powerful weapon, enabling airports worldwide to adapt to the complex challenges and ever-changing market opportunities.

Airports, once considered merely as transit points, are now transforming into true economic hubs, offering a diverse range of services to travelers while seeking to attract an increasing number of airlines and passengers.

In this highly competitive international environment, airports are adopting innovative pricing strategies to attract airlines, maximize non-aeronautical revenues, offer high-yield parking solutions, and design loyalty programs for their users.

This article explains why pricing skills are attracting increasing attention from airport concessions.

In the first part, we will examine the art of convincing airlines to serve an airport. In a context where air transportation is sometimes under scrutiny, airports are competing to attract more airlines, more routes. Some choose the path of price dumping, sometimes with the approval of local authorities, while others prefer more targeted approaches. Airline pricing specialists, often former airline executives, are sought after to conduct sophisticated route studies. These studies aim to demonstrate to airlines that serving a particular airport can be not only profitable in the short term but also a wise long-term investment. These experts, who speak the language of airlines and understand the subtleties of their economic models, have become key players in airport expansion strategy.

In the second part, we will delve into the fascinating world of retail pricing techniques. Airports are no longer limited to being simple points of sale. They have become full-fledged shopping destinations, competing with traditional shopping centers. Duty-free shops, commercial spaces, and restaurants are crucial sources of revenue for airports. They now deploy sophisticated pricing techniques to maximize their profits while offering competitive and attractive prices to travelers. This often involves pushing the boundaries of innovation, exploring new collaborations, and challenging traditional operators.

The third part will take us into the complex world of Yield Management applied to airport parking. Thanks to intelligent algorithms, parking managers adjust rates in real-time based on demand. This dynamic approach not only maximizes parking revenue but also provides travelers with flexible and economical options for parking their vehicles.

Finally, in the fourth part, we will explore the growing importance of pricing experts in designing airport loyalty programs. These programs, now essential tools for customer retention, are carefully crafted to offer attractive benefits to frequent travelers. Pricing specialists, drawing on their experience within airlines as well as other service industries, are called upon to create programs that are both appealing to passengers and profitable for airports.

Throughout these explorations, we will uncover the challenges and opportunities facing airports, as well as the innovative methods they employ to stay ahead in the global airport industry. These pricing strategies, carefully considered and skillfully executed, not only transform airports into must-visit destinations but also enrich the traveler experience, shaping the future of commercial aviation and modern travel.

Convincing airlines: the role of aviation specialists

In a world where travelers are more demanding than ever and airlines compete for every passenger, airports face a complex challenge: attracting airlines to serve their runways. More than just a logistical challenge, this becomes a subtle art of aviation marketing, requiring a deep understanding of airline business models, their political agenda, market trends, and passenger preferences. This is where aviation pricing specialists come into play.

These experts work closely with program specialists, who are traditionally sought for their technical knowledge of aircraft capabilities and their ease in understanding existing traffic rights between states, and their potential to be negotiated. However, their true value lies in their ability to anticipate and understand the needs of airlines. By studying their complex economic models, they can identify potentially lucrative routes, relevant time slots, and the most suitable types of aircraft to operate a route. They conduct in-depth market studies, analyzing passenger behaviors and travel trends, to create flight offerings that meet demand.

This is where the inclusion of pricing experts is particularly interesting: these aviation specialists can decipher the potential of targeted markets, evaluate future market shares, and produce an accurate average passenger price that will make the business plan solid. Additionally, they forge valuable connections, fostering communication between airports and airlines, thus facilitating the conclusion of mutually beneficial agreements. Their ability to present arguments supported by reliable data and accurate financial projections, based on relevant average fare simulations, enables airports to convince airlines of the long-term viability and profitability of serving them.

Retail pricing to maximize non-aeronautical revenues

In the modern era of commercial aviation, airports are no longer just transit points but destinations in themselves. With the emergence of duty-free shops, sophisticated retail spaces, and diverse culinary experiences, airports have expanded their offerings to create full-fledged shopping centers. To make the most of this unique commercial environment, airport managers ensure that selected concessionaires rely on advanced retail pricing techniques that are thoughtful and tailored to a constantly evolving market.

One of these techniques involves creating an immersive shopping experience, where each retail space is carefully designed to capture the interest of travelers. Airports invest in in-depth studies of consumer behavior, analyzing purchasing preferences, seasonal trends, and cultural influences. This valuable data is used to strategically position products in the shops, thereby optimizing sales based on passenger flows.

Another effective strategy relies on diversifying the offering. Airports are transforming into true shopping galleries, featuring iconic local brands as well as renowned international chains. By offering an eclectic mix of products, from local souvenirs to luxury items, airports maximize retail sales by catering to a diverse clientele, ranging from travelers seeking authenticity to fans of well-known brands.

Moreover, airport managers skillfully leverage new technologies to optimize sales. Mobile applications, e-commerce platforms, and multi-currency contactless payment systems have become commonplace, offering travelers a seamless shopping experience. These technological tools not only facilitate transactions but also personalize the shopping experience based on individual traveler preferences, thereby maximizing conversion opportunities.

In parallel, strategic partnerships with brands and distributors are another key retail pricing technique. By collaborating with sought-after brands and offering exclusives to travelers, airports create a sense of urgency and exclusivity, thus encouraging impulse purchases. These partnerships enable airports to boost sales volume in their shops, for which they typically receive a fee calculated based on revenue, thereby increasing their profit margin while enhancing the customer experience.

In summary, retail pricing techniques in airports are a delicate ballet between the art of creating unforgettable shopping experiences, the science of data analysis, and the ingenuity of pricing models implemented.

These strategies aim to captivate travelers' senses, meet their diverse needs, and encourage them to spend, thereby generating robust non-aeronautical revenues and contributing to the economic growth of modern airports.

By mastering these techniques, airports assert themselves not only as transportation hubs but also as sought-after shopping destinations, thus transforming each journey into an immersive and enjoyable experience for passengers worldwide.

Yield management for maximizing parking revenue

In airports, passenger flows fluctuate depending on seasons, days of the week, and special events. Optimizing parking revenue is a real challenge.

Yield Management, a sophisticated strategy initially used by the hotel industry and aviation, has become an essential tool for airport parking managers to maximize their profits while offering flexible parking options to travelers.

The fundamental principle of Yield Management is simple: adjust prices in real-time based on demand. However, its execution requires a deep understanding of traveler behaviors and travel patterns. Through complex algorithms and predictive analysis, airports can anticipate periods of high and low demand and adjust parking prices accordingly. For example, during peak hours or holiday seasons when demand is high, prices may be increased to maximize revenue. Conversely, during off-peak hours or less busy tourist seasons, attractive rates may be offered to attract leisure travelers and fill parking spaces, gaining market share from other transportation modes (airport shuttles, taxis, ride-sharing services, etc.).

This dynamic approach not only optimizes revenue but also provides travelers with economical parking solutions. Travelers benefit from advantageous rates when they book in advance or choose less busy periods. This creates a win-win situation where airports maximize their profits while offering affordable options to travelers.

Furthermore, Yield Management promotes more efficient use of parking infrastructure. By forecasting demand fluctuations, airports can allocate resources more precisely, thereby avoiding wastage of unused spaces during peak hours and optimizing available space. Just as a well-managed airline ensures that a business traveler can always purchase a last-minute ticket on their flight (at a high price), airports have every interest in avoiding early saturation of their premium parking areas to ensure the satisfaction of their business travelers.

In conclusion, Yield Management provides airports with a proactive strategy to manage the changing challenges of parking demand. By intelligently adjusting prices based on demand forecasts, airport parking managers can not only maximize their revenue but also enhance the traveler experience by offering flexible and affordable parking solutions.

Pricing experts designing loyalty programs with a direct impact on sales

The design of a successful airport loyalty program is a subtle art that requires a deep understanding of traveler behavior, market trends, and the psychological mechanisms that encourage customers to remain loyal. It is within this complex context that pricing experts play a crucial role, bringing their valuable expertise to create innovative and effective airport loyalty programs.

These experts, drawing on their experience across various sectors and notably in aviation, understand the crucial importance of striking a balance between the benefits offered to members and profitability for the airport. Their expertise allows them to analyze the costs and benefits associated with each loyalty offer, ensuring that the programs designed are not only attractive to travelers but also financially viable for the airport.

By collaborating closely with airport marketing teams, these pricing experts leverage sophisticated predictive models to anticipate customer responses to various loyalty offers. As a result, they can recommend intelligent incentives, such as targeted discounts on services or exclusive benefits for members, while maximizing the return on investment for the airport.

A crucial aspect of their role lies in adaptability. Pricing experts understand that market trends evolve rapidly, as do traveler preferences. Therefore, they are constantly vigilant for changes in the industry and adjust loyalty programs accordingly. Their ability to stay at the forefront of loyalty innovations allows airports to maintain attractive and competitive programs, effectively retaining customers.

Furthermore, these experts play a crucial role in analyzing loyalty data. They closely examine purchasing patterns, travel habits, and member preferences, extracting valuable insights to continually enhance loyalty programs. With their expertise, airports can personalize offers, thus providing tailored travel experiences that strengthen customer loyalty.

Pricing experts play a central role in designing and optimizing these airport loyalty programs. Their ability to focus on creating measurable short-term value makes them essential partners in creating effective and profitable customer loyalty. Thanks to their valuable contribution, airports can not only attract travelers but also encourage them to remain loyal to the platform, thereby increasing aeronautical revenues.

Pricing expertise: a crucial asset for the airport of the future

In conclusion, the thoughtful application of advanced pricing techniques in airports extends beyond revenue optimization to the creation of memorable and profitable travel experiences for passengers.

By understanding the nuances of consumer behavior, airport managers can design intelligent pricing strategies that promote both customer satisfaction and the financial health of the airport.

The pricing expertise, as applied in the design of loyalty programs, the maximization of parking revenues, the management of commercial spaces, and the implementation of differentiated pricing strategies for aeronautical revenues, proves to be a crucial asset for the airports of the future.

Ultimately, pricing expertise stands as one of the pillars of a comprehensive airport strategy oriented towards future buying behaviors. By intelligently leveraging data, understanding the nuances of traveler behavior, and staying attuned to market trends, airports can create exceptional travel experiences, foster user loyalty, all while ensuring sustainable profitability.