Optimising revenues of airports

Student information

Author: Frank Siebers

Institution: Erasmus University Rotterdam

Graduation year: 2018

Optimising non-aeronautical revenues of airports: the case of Rotterdam The Hague Airport

This study examines the possibilities of optimising non-aeronautical revenues of Rotterdam The Hague Airport. This is done by assessing the price elasticities for all different segments over the years 2013 -2017.

Results indicate that price adjustments can be made to increase non-aeronautical revenues.

The overall price elasticity for parking on the airport is -1.13. This elasticity coefficient lies above unit elasticity, due the busiest months of the year.

In these months, relatively more leisure travellers, which are price elastic, are travelling via the airport.

Therefore, increasing the price in the busiest months is desirable due to possible capacity problems at the airport. In all other months, an increase of the price would result in an increase of revenues, due to the relatively inelastic coefficients of these months.