Events at Airports

How Events Increase

Non-Aviation Revenue

Copyright 2013 EVENTKNOWHOW. All rights reserved

Summary
Ever growing competition, slackening demand
and a shaky global economy are compelling
airport operators to revisit their operating
strategy. Increasing non-aviation revenues, will
help not only to survive, but also thrive! One such
source of income can be created by using the
airport premises for staging meetings, incentives,
conferences, exhibitions also known as M.I.C.E.
meetings. This white paper aims to highlight the
huge potential in this field and how airport
operators can tap into it by utilizing existing
infrastructure for staging a variety of events and
thereby improve revenues significantly. It will
reveal the basic prerequisites needed to organize
and stage events.

Introduction
Airside driven income is vulnerable to circumstances beyond control of the airport operator.
Challenges like airside regulatory restrictions, reduced passenger volume, marginal freight
revenue due to economic recession and operating uncertainties like inclement weather, natural
catastrophes or other threats, pull down the total revenue of the airport.

Copyright 2013 EVENTKNOWHOW. All rights reserved

Why Airports are Considered

Hotspots for Event Organizers

The
event
industry
needs
new
Ideas.

Live marketing through events is gaining momentum

worldwide. Event organizers are always on the look-out
for new locations for staging events like product
promotions. According to the latest Meeting and Event
Barometer taken yearly by the European Association of
Event Centers (EVVC), the market for event locations has
a higher growth rate than traditional conference centers.
international events (at least 10% international delegates)
have increased by 6.1% in event locations alone. Airports
are Special Event Locations!
They are considered to be magnets for event hosting as:
the airport environment is considered fitting for many
marketing messages. For example: the airport atmosphere
is a starting point for companies marketing their image as
a global presence or the exciting atmosphere encourages
consumers and invitees to participate in the evolution of a
brand or an idea.
stereotyped locations like conference centers all look
and feel the same. Airports on the other hand offer an
ever changing backdrop for the event.
invitees of conferences dont want to stay in the same
location they stayed in all day for their evening receptions
and other networking events. Just imagine a gala dinner
with a view of the apron or runways.
even if the airport has mainly LCC (low cost carriers) air
traffic, this also can be very well utilized as a backdrop for
business events. This will also indirectly increase the
number of business passengers using the LCC.

Keep in mind that even though the cost of staging events at airports might be higher, the novelty of the location will
always outweigh the cost of the event. Munich airport with its Munich Airport Center -MAC- is a perfect example. The
price per square meter is 20% higher than at the average exhibition center.
Non-aeronautical sources, such as retail, food & beverages, car parking, real estate, advertising, etc. contribute to almost
48% of Europes airports revenues. In fact, ACI EUROPE stated in 2010 The Ownership of Europes Airports
demonstrated that 80% of Europe's airports operate as commercial companies (private or commercialized businesses).

Copyright 2013 EVENTKNOWHOW. All rights reserved

How to Boost
Non-Aviation Driven Revenue?

Better utilization of existing infrastructure

By concentrating on contexts under the operators control and maximizing lucrative utilization of
existing facilities like unused retailing space, rental of airport facilities landside, providing
conferencing or event facilities, airport operators can draw more business both airside (through
passenger traffic) and landside through rental, catering and service charges, that improve total
revenue. Existing airport infrastructure is already equipped with elements needed for events, like
catering, parking, washrooms, wireless internet connectivity etc. which can be put to even better
use.

Copyright 2013 EVENTKNOWHOW. All rights reserved

The airport operators staff is already very knowledgeable

on many topics pertaining to staging events. Facility
management, logistics and security and safety issues are
handled on a daily basis. But there is a bit more to staging
an event which is why airport operators have three
possibilities to obtain the needed in depth expertise:

Project based contracting of an external

event organizer.
Professional event and meeting organizers will work with
in house staff to stage successful events. Because the
airport environment is so unique, external personnel must
be carefully selected and briefed accordingly to ensure
safe operations.

Hiring their own staff to organize events.

As the operations during events can be handled by
existing personnel assisted by external staff, only the
organizing team should be added. Here at least 2 staff
members will be needed. One will be taking care of
marketing and acquisition, the other will be busy
organizing events.

Leasing the
subcontractor.

event

facilities

to

There are several companies specialized in operating

conference centers and event facilities at airports.
Typically a Hotel operator or caterer will also provide
these services but there are drawbacks as shown below.
Hotel operators and caterers are specialized in lodging,
food and beverage. Their main business is not staging
events.
The airport cannot implement its own policies, especially
pricing, having to adhere to hotel chain policies.
In the end an airport hotel owners and caterers will profit
from an event location at the airport for their own main
businesses.

different ways
to
organize events:
Project based
contracting
Hiring own staff
Leasing to a
subcontractor

Copyright 2013 EVENTKNOWHOW. All rights reserved

The Two Key Areas where Live

Marketing can be Capitalized
B2C - public events
Airport operators can produce an atmosphere that touches passengers and visitors personally
and emotionally. A great airport experience is characterized by low stress, low anxiety, and an
inviting facility that makes passengers and visitors feel welcome. This results directly in a higher
propensity to stay longer and consume, thereby increasing non-aviation revenue in a broad way.
During times of lower passenger volume, non-aviation revenue is needed most. Terminal capacity
not used by passengers can be used for shoppers and other visitors. Themed events and shopping
festivals can be conceived to populate retail areas and thereby increase revenue of catering and
shopping facilities. As the airport becomes a destination, positive relationships to locals are built as
they visit the airport on a regular basis.

Copyright 2013 EVENTKNOWHOW. All rights reserved

B2B - business events, MICE

B2B events are by far the most lucrative events. Nonaviation revenue is impacted more directly than B2C
events. B2B events fall under the so called MICE
(Meetings, Incentives, Conferences and Events) category.
The latest Global Meetings Industry Research report for
the Gulf, Middle East and North African region shows
that in the UAE alone the MICE sector is expected to
continue growing. 56.4 % of event planners and global
buyers say that they will be increasing their volume of
events and budgets in the next 12 months. Airports should
not let this opportunity go by. In this segment, airports act
as a business gateway. The airport atmosphere exudes a
feeling of importance and efficiency with a whirlwind of
global business opportunities to be explored. This is true
even for smaller regional airports without international
connections.
Renting out floor space to companies indoors or outdoors
for the presentation of their products, for meetings and
conferences or stage shows is a direct way of enhancing
revenues. Space and resource utilization can be
maximized by even using the night ban and employing
existing catering facilities. Quick changeover times are
needed to make the most of the given timeslot.
For companies this is a very viable option as it cuts costs
like booking conference rooms in a posh area and bearing
additional boarding and lodging expenses topped with
transportation costs for their invitees to a central meet
from different locations. If event holding facilities are
available at airports, they can simply be availed which
saves considerable cost for the company and also saves
time for the employees who would otherwise have to
shuttle in to new unknown locations to attend a
conference!
Another attractive concept is building the right
infrastructure for conferencing and events and thereby
implementing an Aerotropolis strategy to satisfy the live
communication needs of the surrounding airport
suppliers and businesses.
By building the right infrastructure, airports can create a
synergy where the businesses flourish due to offers and
opportunities of markets located in its proximity.

The most lucrative

events are business
events.
Renting out unused
floor space is a direct
way of enhancing
revenues.
Events at airports are
attractive to companies
saving time and money.
Airport suppliers and
businesses participate
by using the
infrastructure next door.

Copyright 2013 EVENTKNOWHOW. All rights reserved

What Factors Influence the

Success of an Airport as an
Event Location?

Critical
Factors

To put into practice the above illustrated strategies, airport

operators need to be aware of critical factors which are
pivotal to the success of an airport as an event location.

Intermodality
How people get to the airport is crucial to its success as an
event location. Access by train, good parking capacity and
the distance to the intended visitor is key.

Timing is most important

Most crucial is the timing and planning of the event.
Airport operators must know when passenger volume is
low in order to maximize the use of free space.

Other Important factors are:

maintaining the level of safety and security during the
parallel operation of events and passenger movements
ensuring smooth logistics for event setups, power
supply, internet connectivity and security
engaging knowledgeable staff that understands the
needs of the event organizer

Copyright 2013 EVENTKNOWHOW. All rights reserved

Checklist Basic Requirements

The basic space and infrastructure requirements
to stage events in a safe and profitable way
1. A capacity of 2 attendees standing or seated per net sq. meter is a
good measure that insures no crowding and good utilization of
space. The maximum capacity is limited by the dimensions of
existing emergency escape routes and exits.
2. When tables are in use such as in a classroom style or gala setting
with round tables then a measure of 1 person per net sq. meter is
comfortable. This ensures enough space for attendees and waiters to
traverse easily.
3. The staging area is defined by the performance being given and its
technical requirements. Typical stage sizes range from 10 sq. meters
up to over 200 sq. meters.
4. If the event is being held during normal operations in a typical
terminal situation you would specify an area where passengers can
pass by freely on all sides of the area so they are not hindered. Also a
risk assessment will reveal the necessity and number of security
personnel and deal with special situations that might occur.
5. Utilities like electrical power for the event must be installed near the
stage and catering stations.
6. Ceiling height is important. If a movie or presentation is to be shown,
the height of a stage and anything on it plus the screen and lighting
or other fixtures hanging from above will determine the necessary
ceiling height. Heights between 4 and 8 Meters are sufficient.
7. Space for logistical needs must be considered. Backstage, storage,
and catering preparation areas may be needed.
8. Are the elevators big enough and is there enough parking space for
trucks and the like? Load-in and -out times must be specified.
9. Enough sanitary facilities for the attendees should be nearby.
10. Depending on weather, cloakrooms or mobile coat hanging facilities
are necessary.

Copyright 2013 EVENTKNOWHOW. All rights reserved

Methods used to evaluate

airport infrastructure
Methods used to evaluate airport
infrastructure
This exercise helps potential investors make an educated
decision. It involves reviewing the projected capital
expenditure required to upgrade terminal, airside and
landside infrastructure discovering areas for future
savings and profits and developing a phased investment
plan for implementation.

Due Diligence

Site inspection: Making sure that IATA level of service

requirements are met and safety requirements are adhered
to is a challenge in existing airports when staging events.
A careful scrutiny of existing floor space often reveals a
potential that was not noticed before. The ideal solution is
incorporating the necessary floor space in the planning
stage of a new terminal. Among other factors to be taken
into account are power capacity, roof and floor loading
capacity and logistic requirements.

Site Inspection

To select an external event organizer, a decision matrix for

the procurement of event organizing services will be
derived by defining airport operation goals, the required
level of service and planned revenues.
This process will provide the decision basis to choose a
provider using correct tendering procedures.

Decision Guidelines

To plan the strategy on how event hosting will sync up

with existing passenger volumes, allocating space based
on airport design, attendees comfort and the impact on
possible events.

Master Planning

Benchmarking is all about scanning competitors offerings

and doing a weighted analysis as to whether the airport
lags somewhere. After weak spots have been identified, a
plan will be created to eliminate the weak spots and win
customers based on improved premium services.

Benchmarks

Copyright 2013 EVENTKNOWHOW. All rights reserved

Your Partner in Increasing

Non-Aviation Revenue:
For more information about a holistic approach to staging events at airports,
contact Mr. Bruno Marx
at marxb@eventknowhow.com,
tel. +49 221 168 40 332
EVENTKNOWHOW is your consultant firm for the building and operations of event locations.
Their team of qualified professionals meet your requirements and address your needs beginning
from the first architectural drawings to staging the event. They will be happy to serve you.

Copyright 2013 EVENTKNOWHOW. All rights reserved