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CA+ has revolutionized the airport industry
September 8, 2016
by John de Giorgio
CA+ has brought about a revolution in the non-aeronautical sector of the airport industry. This $58 billion industry, representing 40% of global airport revenues (source: ACI Economics Report 2015) and anecdotally much higher levels of profitability, today underpins the performance of most airports worldwide and enables them to maintain a level of economic sustainability for their core business of processing passengers and aeroplanes through their facilities.
However, despite the importance of this sector to the world’s airports, the processes adopted by the vast majority of airports, large and small, are very simplistic, relying on manual receipt of sales data, often just as weekly or monthly totals, high levels of use of spreadsheets, little control and thus little insight.
So, where is the problem? Most commercial agreements in airports have transitioned to a revenue share model, underpinned by minimum guarantees. Most concessionaires submit their sales data via email, either weekly, or more commonly monthly by the 10th of the following month. Sales are submitted as a total or, where agreements are based on different revenue share percentages for different categories, these may be by category. Spreadsheets are used to record the data received and to undertake analysis, including reporting on revenue shares to the Finance team for billing through the ERP system.
Significant resources are allocated to this process and yet it results in only high level sales data, received too late to influence outcomes and with very poor control mechanisms. The risk of revenue leakage through under-reporting is also high and of great concern in certain markets.
In addition, concession agreements are kept quite simple because, due to the manual nature of processing, they need to be simple so as to enable their processing using these manual methods.
This is where CA+ has revolutionised the airport industry. In addition to CA+ managing the concession agreements, including the agreed revenue shares by product category, by threshold, by destination of passenger and other criteria, as well as minimum guarantee management, rents, other fees and utility charges, the greatest strength of CA+ is its ability to automate the collection of transactional level sales data from all the different concessions.
Offering a number of technical solutions for sales data collection, each designed to suit different environments, the radical CA+ Capture software is proving to be a main driver for interest in CA+.
CA+ Capture is a software solution installed on the concessionaires’ existing point-of-sale (POS) which works in the background to automatically take a copy in real-time of anything printed on that POS, sending the information to CA+ for analysis.
With CA+ Capture, sales data is captured at a transactional level, automatically and in real-time, with the highest levels of control and with no user intervention, while allowing the concessionaires’ staff to continue to use their own software unaltered. As the software operates in the background and is unseen by the user, no end user training is required.
Other sales data collection methods are also available including the ability to import concessionaires’ export files or allowing concessions to push data to CA+ through an API. CA+ also offers CA+ POS which can be deployed to those concessionaires that do not have their own POS solution.
The CA+ BI module provides role based dashboards and reports to enable deep and automated analysis of performance. Through the linkage offered by CA+ to the airport’s operational systems, particularly flight details and passenger numbers, correlation of performance with operations enables optimisation of both the aeronautical and non-aeronautical sectors.
Concessionaires can be given access to the CA+ Portal to enable them to assess their own performance and compare it to the benchmark for their category driving performance. Airports can better understand the sales performance of different operators, terminals, categories, locations, promotions etc to support tactical decision-making.
CA+ has revolutionized the airport industry by enabling it to up its game, obtaining real-time sales data, automating processes and providing a high level of insight to influence decision making in the non-aeronautical sector and boost profitability of this increasingly key sector.
CA+ and CA+ Capture are registered trademarks of CA Plus Limited, the global leader in solutions for the airport non-aeronautical industry.
About John de Giorgio
John is the CEO of Concessionaire Analyzer+, a software company specialising in assisting airports in controlling, managing and boosting their non-aeronautical revenues, a sector of ever-increasing importance to airport revenues and particularly profitability.