Making time valuable: Future-proofing Schiphol’s non-aeronautical revenues

Abstract

Many airports achieved significant profits and provided healthy returns for their shareholders with non-aeronautical revenues — eg income from retail and parking — playing a substantial role in airport profitability because of the rising number of airline passengers in the past years. The world is, however, changing faster than ever before: the rise in online shopping and new types of mobility and digital developments are impacting the airports’ business models. If airports wish to remain relevant and profitable in the future, their ability to innovate is vital. Every day, airports have to perform a delicate balancing act between short-term activities and long-term initiatives. Moreover, the uncertainty that the future brings will require substantial courage and adaptability. This paper discusses how Amsterdam Airport Schiphol strives to optimise flexibility, control and collaboration: ensuring we are flexible enough to anticipate and adapt to future developments, gaining more control by assuming the role as orchestrator in relation to the complete customer journey and supply-chain process and work in strong collaboration with current and future business partners. The paper analyses how the customer is the central focus of everything Schiphol does: we make the passengers’ time valuable while we connect their world. Schiphol is preparing itself to embark upon new types of partnerships and revenue models. A key aspect in achieving these goals is to conduct an open dialogue with business partners and other airports. After all, in this new world, we need to cooperate and share knowledge rather than compete with each other (please see Author’s Note at the end of this paper).