What I Airports Business Model and Earning Sources

A location where airplanes, people, and cargo is operated is where aviation activities are carried out. The airport is split into two sections: the air side and the land side.

One of the hubs of economic activity, the airport also maintains seamless traffic flow. The modernization of the airport sector and the digitalization of operations at airports today aim to replace human interaction with robotics and artificial intelligence.

 How does the airport earn money?

The airport business is a complex one and requires a lot of operational costs which need to be recovered by airport operators for they have many revenue sources inside the airport by which they make revenue and are able to run the business such as rent from shops inside the airport and services that airport offers to passenger or airlines lets us have a quick look.

First, we talk about ret airport received by shops.

When going to the airport you see a lot of shops and restaurants inside the terminal building and you know how expansive they sell compared to the outside market it is due to have rent they have to pay to airport operators to get a place inside the airport and it depends on the airport to the airport if it like Delhi international airport with a lot of traffic then rent will be too high and it is one of the main sources for the airport to earn revenue.

Second, Airport Parking

We travel to the airport all airports have parking for travellers and where they charge huge amounts as parking fees and it is also a revenue source for the airport

Third, the Service provides to Airlines

When the aircraft lands at the airport then airport revenue stared when the aircraft is parked at the gate then they have to pay a fee for a parking slot or gate to the airport operator after that ground services provide to airlines by the airport followed by cargo or baggage handling by the airport operator and also when you book a flight ticket you see there are some charges add in it there are fees added into it such as User Development Fees (UDF) that been charge by the airport operator also Passenger Service fee it is charged for the security provider to passengers by Airport Authority of India or private operators such as GMR, GVK.

Other than that, there are other sources also such as advertisements inside the airport. Rent taxi services from the cargo warehouse provided to the company, offices inside the airport, and many more.

Hope you get to know how airports make money and are able to make it profitable even with huge operational costs.

Nowadays airports are also investing in the process of Modernization of the airport industry to reduce their costs and also make the process as efficient as possible with convince to passengers. Where human employers are replaced by robotic and also article  intelligence help to analyse the key factor and make the process smooth