Airports need to rethink their business model as travellers’ habits change
Airport operators around the world face a significant dilemma. Passenger numbers have risen over the past three decades, driven by a number of factors, including intense airline competition, an international tourist boom and the low price of fuel. Airports have expanded to meet the needs of these increasing passenger numbers, while at the same time reducing rates charged to airlines so as to attract them. Commercial activities have traditionally filled this income gap, but now airports are coming to terms with the fact that passengers no longer spend their money at airports as they have done in the past. This means airports have to raise their airlines rates in response. It is a dilemma that seems to threaten their current business model. Intense competition among airlines has contributed to the increase in passengers, with strategies based on lowering rates and reducing costs. Low-cost airlines have played a very important role in the extraordinary expansion of air transport over t...
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