How innovation is driving passenger experience and revenue growth

The aviation industry has made a strong comeback since the pandemic.

According to ACI World, 2023 passenger numbers are just 5.4% below 2019 levels, and airports are once again welcoming millions through their doors.

However, while footfall is rising, the same cannot be said for revenue. Total revenues were 11.4% lower than the pre-pandemic figure of 158.6 billion USD.

This disconnect between growing traffic and stagnating commercial performance presents one of the most pressing challenges, and greatest opportunities, facing airport operators today; to address this gap, airports need to rethink their commercial strategies.

In this article, we’ll explore why traditional revenue models are falling short, how connected ecosystems can create value, the role of data in smarter decision-making, and how ancillary products can evolve into premium passenger experiences.

It also includes a case study from Columbia Metropolitan Airport and shows how CAVU is helping airports unlock long-term growth.

Why are traditional revenue models flawed?

Passenger expectations have changed, with modern travellers expecting convenience, flexibility, and personalisation throughout their journey. Despite this, many airports still rely on commercial models built on the assumption that higher footfall alone will lead to increased spending.

While retail and food and beverage remain important contributors to revenue, they’re no longer sufficient on their own. In today’s environment, airports must diversify their income streams by offering value-added services that meet passengers at the right moments, both digitally and contextually.

This requires a fundamental shift away from isolated, transactional touchpoints. Instead, airports need to create seamless, end-to-end experiences that feel intuitive for passengers and deliver measurable results for operators.

Building a more connected commercial ecosystem

To achieve this, airports must focus on breaking down operational siloes and building integrated, tech-enabled commercial ecosystems. When services and systems work together cohesively, both passenger satisfaction and revenue performance can improve.

One key step is to simplify the booking process. Many airports still require passengers to use separate platforms to book parking, fast track, or lounge access. This introduces unnecessary friction and reduces conversion rates. By integrating these services into a booking journey using a single basket approach, airports can remove barriers, increase convenience, and boost average transaction values.

Similarly, back-end systems must also be aligned. Disconnected platforms for payments, inventory, customer data, and pricing can create inefficiencies and lead to missed commercial opportunities. A connected ecosystem allows real-time visibility and coordination across departments, supporting more agile operations and enabling upselling opportunities.

Furthermore, having access to real-time data and tools empowers commercial teams to act on insights as they emerge.

Dynamic dashboards and pricing platforms allow airports to respond to changes in demand, whether by adjusting capacity or launching targeted campaigns. This responsiveness ensures that revenue opportunities aren’t lost to delays or manual processes.

How can data drive smarter revenue strategies?

Beyond system integration, airports also need to unlock the full potential of their data. Although vast amounts of information are collected every day, few operators are using it to its full advantage. When applied strategically, data can become a powerful engine for personalisation, forecasting, and decision-making.

For example, by segmenting passengers based on purpose of travel, booking history, or spending patterns, airports can deliver more targeted and relevant offers. Business travellers may prioritise premium parking or fast-track security, while leisure travellers could be more attracted to bundled packages that combine lounge access and parking.

Timing plays a crucial role. By analysing behavioural data, airports can deliver offers at the moments passengers are most likely to engage, such as promoting lounge upgrades during long layovers or sending reminders to pre-book parking ahead of peak travel weekends. These timely interactions can significantly increase conversion.

In addition, dynamic pricing helps airports adapt to fluctuations in demand. Services like parking and fast track often experience peaks and troughs in usage. Adjusting prices in real time helps maximise yield while ensuring rates remain competitive, particularly during high-traffic periods where fixed pricing can lead to underperformance.

Analysing historical booking data and wider travel trends can enhance forecasting and planning. With more accurate predictions, airports can refine their capacity planning, tailor marketing efforts, and make commercial operations more proactive and profitable.

Turning ancillary services into premium passenger experiences

While data and systems lay the groundwork, the real opportunity lies in how ancillary services are positioned. Passengers are willing to spend, but only if the experience justifies the cost. The challenge is to reframe these services from optional extras into valuable and memorable parts of the journey.

Convenience is a powerful motivator. Services like fast-track security and pre-booked parking help reduce stress and streamline the journey, especially when offered at the right moment, during booking, check-in, or through timely pre-departure reminders.

Bundling multiple services, such as parking, fast-track, and lounge access, can further enhance perceived value. When tailored to specific traveller types, from frequent flyers and leisure passengers to multi-generational families, these packages make benefits easier to understand and more compelling to purchase. Effective bundles reflect varying priorities, such as flexibility for parents, comfort for older travellers, and time-saving advantages for business passengers.

Comfort is equally important. Lounge access, once limited to first-class travellers, is now being reimagined for a broader audience. Offering single-entry passes or bundling lounge access with other services opens new markets and appeals to passengers who value peace and quiet before a flight.

In today’s travel environment, flexibility has also become essential. Giving passengers the option to amend or cancel ancillary bookings, particularly for services like parking, can build trust and encourage earlier commitments. This kind of reassurance is now expected and often plays a decisive role in purchasing decisions.

Responding to evolving passenger demographics

The diversity of modern travellers has marked a shift in expectations. According to Ryanair, inter-generational bookings rose by 52% in the five years leading up to 2019, while TUI reports that nearly 80% of young adults now holiday with their parents. At the other end of the spectrum, older travellers are staying active longer and have more disposable income but require greater support throughout the airport journey.

For airports, this means building commercial strategies that meet different needs. Younger travellers expect digital-first journeys, crave personalisation, and are open to newer formats like “bleisure” or “gig-tripping.” Meanwhile, older passengers may need assistance and reassurance but still value comfort and convenience.

Airports that succeed in the future will be those that design ancillary products, services, and experiences with these varied needs in mind, offering both flexibility and personal relevance.

How does CAVU help airports improve commercial performance?

For airports looking to turn rising passenger numbers into stronger commercial performance, “good” means more than just incremental gains. It means creating a smarter, more connected commercial ecosystem, one that delivers seamless, personalised experiences for passengers while unlocking measurable value for operators. This is where CAVU comes into its own.

CAVU was founded by Manchester Airports Group with a clear mission: to help airports unlock more commercial value from every passenger journey.

As a Global Travel Marketplace, we combine over 80 years of aviation expertise with the latest in ecommerce innovation to serve both travellers and airports.

But we’re not just a technology provider. Rather, we’re a strategic partner helping you rethink how non-aeronautical revenue is generated.

From disconnected touchpoints to connected experiences, we enable airports to offer personalised, relevant products, delivered through one seamless booking journey. This is what transforms ancillary services into revenue-driving experiences.

With CAVU, airports gain:

• Access to a global distribution platform that attracts new customers and revenue streams
• Data insights that show how passengers search, book, and spend
• Smart pricing and packaging tools that drive incremental revenue and boost conversion

At the heart of our Marketplace is propel™, a purpose-built ecommerce platform for airport ancillary products.

Designed with and for airports, propel gives commercial teams the tools to optimise pricing, manage capacity dynamically, and ensure services like parking and lounges are always priced for maximum yield.

propel™ is easy to introduce, integrates with existing systems, and supports a seamless booking journey constantly refined through millions of global transactions. It’s how you stay agile, responsive, and competitive in a rapidly evolving industry.

How we helped Columbia Metropolitan Airport increase revenue and improve operations

An example of this strategy in action comes from Columbia Metropolitan Airport (CAE), which partnered with CAVU to overhaul its pre-book parking proposition. The results demonstrate how a smarter, data-driven approach can enhance both engagement and revenue.

Between February 2023 and February 2025, CAE experienced a 97% increase in sessions to its parking booking site. Much of this growth (67%) was driven by targeted Facebook campaigns managed by CAVU.

Meanwhile, the airport’s CRM database expanded from 7,000 to 77,000 contacts, with email campaigns generating a 43% year-on-year increase in database growth. Engagement also improved significantly, with unique email clicks rising by 37% and monthly bookings increasing from just over 20 to more than 150.

Revenue results were equally impressive. CAE experienced a 259% year-on-year increase in gross revenue from pre-booked parking, along with a 258% rise in booking volumes. Market penetration increased by 17%, and the average yield grew by 29%. These improvements spanned all parking products and durations, with especially strong performance in bookings made over a month in advance.

By connecting data, pricing, and digital marketing, CAE created a more responsive, profitable commercial model that delivers both operational value and a better passenger experience.

Why innovation is key to future successes

Airports are no longer defined by footfall; the challenge today isn’t attracting passengers but converting that demand into revenue without compromising the passenger journey.

Innovation holds the key. By using integrated ecosystems, data-driven strategies, and enhanced ancillary offerings, airports can achieve commercial outcomes as seamless as the experiences they aim to provide.

To learn how to futureproof your airport’s commercial model, join us at Future Travel Experience EMEA and attend a presentation by Martin Jones, CEO of CAVU, on building more profitable, connected passenger journeys.