Context
In 2024, international travel in premium classes grew by 11.8 percent—faster than economy class (+11.5 percent)—bringing its share to 6 percent of global passenger traffic (IATA, 2024). Against this backdrop of rising passenger expectations, lounges are becoming an increasingly strategic priority for airports, both in terms of the passenger experience and ancillary revenue.
Following the renovation of its existing lounges, a French airport turned to Vertone for help in rethinking its overall strategy regarding service offerings, pricing policies, and management practices.
The study focused on three complementary areas: redefining the positioning and model of existing lounges; designing a VIP lounge intended to accommodate official visitors and VIP passengers; and evaluating the feasibility of developing a lounge in the “arrivals” area and the form it might take.
Objective
Define the development strategy for the airport’s retail spaces by identifying the positioning, business model, and management approach best suited to its challenges regarding foot traffic and profitability.
Our approach: combining on-site analysis, industry benchmarking, and economic modeling
- Customer Needs Analysis: Analysis of airport data to identify key issues related to lounges (traffic levels and length of stay, revenue and breakdown by customer segment, cost structure, and economic performance); conducting 14 interviews with key stakeholders (airports, airlines, operators) to gather the needs and expectations of the various stakeholders
- Mapping of Competitive Offerings: Conducting a benchmarking analysis of service standards by lounge type, both at comparable airports and at benchmark airports (service offerings, access policies, pricing, space layout, management approaches)
- Financial Scenario Planning and Modeling: Development of four comprehensive trade show management scenarios aimed at balancing operational efficiency and economic performance; preparation and cost estimation of business plans incorporating different levels of investment and management models (in-house management, outsourcing, or concession); recommendation of a preferred target scenario aligned with the airport’s strategic objectives
Results
- Benchmark by trade show type, enabling the identification of market standards and expectations associated with each category
- Detailed three-year business plans that address the challenges specific to the airport in terms of traffic management, profitability, and operational complexity
- 4 scenarios for comprehensive trade show management, including one recommended target scenario
To find out more, contact our team
