Commercial Contract Management
Airport non-aeronautical revenues are usually based on a mixture of revenue shares, minimum guarantees and additional charges regulated by concession agreements. Recording these agreements, together with all their parameters, is an essential aspect of managing the non-aeronautical revenue process, calculating revenue and issuing bills to concessionaires.
CA+ is able to record and understand all elements of a commercial agreement, taking into consideration any applicable rules to work out the actual revenue due based on the information provided in the contract management module.
Revenues are then used within the:
- CA+ Airport BI module for a detailed analysis of performance based not just on sales but also on airport revenue.
- CA+ Airport Billing module to issue bills to concessionaires with possible integration to the airports’ ERP systems.
CA+ supports the following elements within concession agreements:
- Concessionaire agreements covering multiple shops
- Multiple agreements with the same concessionaire either for different shops or different time periods for the same shops
- Revenue share percentages that vary:
- by product category for each concessionaire
- by destination or departure airport group (e.g. EU/non-EU, Asia, N America etc.)
- by shops for the same concessionaire in multi-shop agreements
- once sales in one or all categories have reached a certain threshold level of value
- over date periods within the same contract
- Minimum guarantees including:
- amounts being set either as a fixed amount in value terms or as a rate per passenger actually flown
- minimum guarantees amounts being pre-agreed as a fixed percentage of the previous year’s revenue
- the ability to set the guarantee for any time period e.g. weekly, monthly, quarterly or annually
- Fixed rent instead of or in addition to revenue shares
- Additional charges for internet, maintenance, marketing and more that might vary over time and may be fixed or based on a percentage of total sales for the shop.
- Changing of rates for any of these elements over time within the same contract. E.g.: Revenue shares or minimum guarantees could be set at particular levels for the first 6 months and may then increase or decrease for the subsequent date period.