Non-Aeronautical Revenue: What It Is, Why It’s Essential, and How It Boosts Airport’s Earnings

For airports, non-aeronautical revenue is essential for financial stability, whilst playing a key role in improving the passenger experience. 

With airline fees fluctuating and passenger expectations evolving, airports must find new ways to secure financial stability. Non-aeronautical revenue generated through ancillary services has become the key to sustainable growth. 

But what exactly is non-aeronautical revenue, and why does it play such a vital role in an airport’s success? 

Aeronautical Revenue vs Non-Aeronautical Revenue 

Airports generate revenue through two primary channels: aeronautical and non-aeronautical revenue. 

What is Aeronautical Revenue? 

Aeronautical revenue comes directly from airline operations, including landing fees, terminal rentals, passenger service charges, and aircraft parking. This income is essential but can fluctuate based on airline demand, economic conditions, and travel disruptions. 

What is Non-Aeronautical Revenue?

Non-aeronautical revenue, on the other hand, includes all earnings generated outside of airline operations. 

This covers parking, retail, food and beverage services, lounges, and other premium services. By prioritising these alternative revenue streams, airports can build financial resilience, reduce reliance on airline fees, and invest in infrastructure and service enhancements. 

How to Maximise Non-Aeronautical Revenue 

Parking and Ground Transportation Services 

Car parking remains one of the most significant non-aeronautical revenue sources for many airports. To increase earnings, airports can introduce tiered pricing structures that offer premium, economy, and valet parking options, catering to a range of customer preferences. 

Using dynamic pricing models that adjust rates based on demand can also help maximise revenue, while forming partnerships with ride-hailing services to create dedicated pick-up and drop-off zones can generate additional income and improve the passenger experience. 

Retail and Dining Offerings 

Passengers often spend considerable time in airport terminals, creating ample opportunities to increase retail and food and beverage sales. 

Expanding duty-free offerings and introducing high-end retail brands can attract premium spenders while ensuring a variety of dining options that appeal to a broader audience. 

Airports focusing on local and international culinary experiences can further enhance their appeal, encouraging passengers to spend more time and money within the terminal. 

Advertising Opportunities 

Advertising is another lucrative non-aeronautical revenue stream that airports can leverage effectively. By making use of high-traffic areas such as check-in zones, security queues, and departure lounges, airports can offer brands premium exposure to a captive audience. 

Digital screens, interactive displays, and targeted mobile advertising can create additional revenue while also providing passengers with engaging content during their journey. 

Lounge and Premium Services 

Offering services such as airport lounges, unique experiences (such as aether), fast-track security, and concierge services can generate significant non-aeronautical revenue. 

Many passengers are willing to pay for a more comfortable and seamless airport experience, with over half (57%) of frequent flyers using airport lounges.  

By partnering with airlines or third-party providers, airports can ensure these services are widely accessible while generating additional revenue. 

Developing Non-Traditional Revenue Streams 

Beyond the more conventional sources, airports can explore innovative ways to boost non-aeronautical revenue. Hosting events, leasing space for business conferences, or even incorporating entertainment experiences within the terminal can attract new income streams. 

Additionally, integrating e-commerce and click-and-collect shopping services allows passengers to make purchases before arriving at the airport, increasing conversion rates for retailers. 

Optimising Digital Engagement for Non-Aeronautical Revenue 

In addition to traditional revenue streams, airports can further boost non-aeronautical revenue by using digital tools that engage passengers innovatively. For instance, offering parking reservation software allows passengers to secure their parking spaces ahead of time, ensuring smooth operations while guaranteeing revenue. 

Similarly, pre-order food and beverage services allow passengers to purchase meals in advance and skip the queues, enhancing customer satisfaction and increasing sales. 

Loyalty Programs and Proximity Marketing 

Building passenger loyalty through reward programs and proximity marketing is another strategy to drive non-aeronautical revenue. By offering discounts, upgrades, or exclusive deals through loyalty schemes, airports can encourage repeat spending.  

The role of location-based advertising and personalisation is becoming increasingly important in creating seamless, connected experiences within airports. By using passenger data and real-time location insights, airports can deliver targeted offers and promotions, improving the shopping experience while driving non-aeronautical revenue. 

This shift towards personalised engagement is essential in meeting evolving consumer expectations, a sentiment echoed by Roisin Evans, Head of Customer Marketing at CAVU: 

“Users are more cautious about spending and expect maximum value at every stage of their journey. 

“Personalisation has become essential, with seamless, lifecycle-driven experiences powered by first-party data now a standard expectation.  

“Generic marketing no longer works—customers demand tailored, multi-channel communication that makes them feel understood and valued.” 

Use of Real-Time Data Analytics 

To drive non-aeronautical revenue, airports must use real-time analytics to better understand passenger behaviours and trends. Paris Bielby, Data Director at CAVU, explains how data-driven insights can improve revenue generation: 

“When it comes to pre-travel upselling, it’s all about making things convenient. Using generative AI can help streamline how information is shared during transactions, leading to higher conversion rates. 

“During the travel experience, it’s more about understanding behavioural trends and passenger sentiments. If people in departure lounges are looking for more space, data can help manage the timing for when passengers are called to the gate, allowing everyone to move around more comfortably. 

“After the travel experience, the focus shifts to how brands can get creative and incentivise feedback. If companies want to know what rewards or incentives their customers would appreciate, they need to offer something in return for that feedback. It’s a win-win to keep the conversation going.” 

By tracking which services are in high demand, airports can adjust pricing and availability, maximising opportunities for increased non-aeronautical revenue. This data-driven approach allows airports to fine-tune their offerings and align them with passenger preferences.

Optimise Your Strategy and Increase Non-Aeronautical Revenue with propel™ 

To successfully implement these strategies, airports need a platform that simplifies operations while enhancing the passenger experience. 

propel™ provides a specialised eCommerce solution tailored to the travel industry, offering a seamless white-label booking flow that allows passengers to browse, book, and pay for services like parking, lounges, and car rentals in just a few clicks. 

With advanced pricing tools and detailed reporting, propel™ enables airports to manage products and pricing effectively, driving revenue growth and ensuring competitive pricing strategies. 

propel™ also delivers valuable insights into product performance, helping airports track inventory, identify high-demand services, and make data-driven decisions to optimise sales, ensuring that services remain fully booked and boosting financial performance. 

Get in touch today for more information on how we can lay the foundation for increasing your airport’s revenue goals.