the use of business intelligence to maximise airport retail and f&b performance

Concessionaire Analyzer+

Concessionaire Analyzer+Maximising airport retail/F&B performance

www.concessionaireanalyzer.com


Airport Revenues

Aviation sector revenue $59.5 billion in 2011 Continued downward pressure on airports’ aeronautical revenues

Frequently non-profitable sector

Non-aviation sector revenues $45.9 m in 2011 Retail & F&B largest component (27%) except in N America

Airports’ Retail and F&B revenues = $12.4

Source: ACI Economics Report 2012

56%

44% Aeronautical

Non-

aeronautical


Context

Continued downward pressure on airport’s aeronautical revenues from airlines & competition

Revenue sharing schemes in place at most airports on retail and F&B

Airports are increasingly reliant/focused on retail & F&B sales as source of revenue Increasing aeronautical revenue is costly – requires increased

pax & infrastructure investment Small % improvement big value.

Need to measure and influence retail performance


Current Situation

Retailers measure their own sales, footfall, sales by area, KPIs etc. Do not have vision of total sales in airport or sales by category

Airports collect sales mainly for billing of concession contracts. Focused on billing with limited analysis

Data collection limited Weekly or monthly by category - not transaction level

Sometimes by flight – variable quality

Almost always via e-mail and not structured

Lacks control and audit

Billing process lacks automation & controls

Performance analysis generally limited and manual


The Opportunity

opportunity for further improvement through better analysis and tactical actions to drive airport’s decision-making & planning

reduce delay in data collection & analysis Increase agility and responsiveness to trends

increase level of detail & thus capability for analysis

combine sales data with flight, pax and people counting data

assess impact of promotions, digital advertising etc.

share analysis with concessionaires to provide performance analysis

people counting as revenue booster rather than queue management

boost performance of retail/F&B sales and income


CA+ Overview

Collect sales

data

Analyse

Performance

Concession

Contracts,

Revenue & Billing

Airport

POS

Automates receipt of retail and F&B sales data from concessionaires to allow subsequent analysis.

Provides insight on performance of airport retailers and F&B operators, flights, routes, retail categories, terminals etc.

Enables recording ofcommercial agreements and determination of revenues on sales and billing of concessionaires.

An optional Point-of-Sale solution aimed at airport retails and F&B operators that provides real-time airport sales.


CA+ Objectives

Implement a low touch cost method for collection of concessionaire sales data Improve controls & auditing

Reduce latency of information

Obtain data at detailed level of granularity

Analyse retail and F&B sales to drive airport’s decision-making

Share analysis with concessionaires to boost their performance

Calculate revenue agreements & billing

Enable improved resource allocation


What is the CA+ Solution?

CA+ is a software solution that allows airports and airport retailers to boost their performance consisting of:

Centralised data warehouse Integration layer to receive sales & product data from

retailers/F&B Business Intelligence platform – web, iPad, Android tablets CA+ Portal – role based for airport & concessionaire users Integration component for: Flight information including passenger numbers per flight People Counting Systems data (next on roadmap)

Shireburn Airport.PoS solution Airport specific functionality & real-time data collection

Concession contracts management Billing Engine for revenue share calculation & billing


What does CA+ do? Collects retail sales data into a data warehouse together with

passenger & flights data

Provides customizable BI platform allowing measurement & analysis of retail performance to airports to drive revenue improvements Equalises analysis with performance per passenger by

flight, route, carrier, retailer category etc.

Allows concessionaires to benchmark their performance against similar categories of retailers in terminal/zone etc

Maintains concession agreements with revenue share, guarantees

Enables automation of revenue calculation & concessionaire billing

Improves intelligence for negotiations by airports with airlines & concessionaires

Improves resource allocation

Improves auditing and controls

etc.


BI Analysis

BI module provides role based dashboards including drill-down & filtering

Dashboard composition can be determined centrally for a role or configured by user

CA+ BI Builder allows self-service building of additional BI components

Open database for ad-hoc reporting, querying & use of your own preferred BI solution

Browser, iPad, Android


Capabilities

Analyse Revenue not just Sales

Assess performance before, during & after a promotion

Assess impact of digital advertising campaigns

Compare sales/pax etc across concessionaires in same retail category for benchmarking

Monitor conversion rates from people counting/flow

Walk by Walk in Buy

Monitor trends – work with concessionaire to gain improvements

Compare performance by retail category, zone in terminal etc.

Allow concessionaires to benchmark their performance with others in same retail category

Improve intelligence for negotiations with airlines & retailers


Revenue Calculation & Billing

Maintains commercial contracts revenue share % by product category, by destination (e.g.

EU/non-EU), by sales threshold

minimum guarantees

rents

additional charges e.g. maintenance fees, internet charges etc.

Undertakes daily revenue calculations

Generates concessionaire billing


Airport POS

Optional POS with standard POS functionality plus airport specific features:

Fully functional POS solution Tagging of sales to flights Destination-dependant pricing/tax/excise Support for airline voucher payments/reporting Staff sales monitoring Integrated with Concessionaire Analyzer+ Real-time data collection


Deployment On-premises or hosted

Opportunity for managed service

Flexible licensing model


Main Benefits

Enables better understanding of retail sales patterns & profile of passengers, routes, airlines, pop-up shops etc.

Greater analysis through greater detail

Freshness of data – typically collected daily

Assess impact of promotions, digital advertising etc.

Benchmark, monitor & optimise performance of concessions, product categories, routes, zones, terminals

More accurately predict future trends & planning

Improve negotiations with airlines & concessionaires

Improve control & auditing

Improve flexibility of contracts & automate billing

Maximize retail sales, revenue & performance



Shireburn Software LtdTel +356 2131 9977

[email protected]


the use of business intelligence to maximise airport retail and f&b performance

Technology