Bangalore Aiport is a Mall with a Runway…
Side hustles of Aiports
August 10, 2024
Recently, I had to catch a flight to go to a friend’s wedding. Walking through Bangalore Airport felt like the line between boarding gates and retail gates have almost blurred. The airport, which was a mere point of departure, has now become a destination in its own, offering a rich host of shopping experiences that sometimes rival the destinations they serve.
Actually It’s a phenomenon not unique to Bangalore. Airports globally are redefining their spaces, transforming into commercial hubs where the revenue from retail and dining often surpasses that from their aeronautical counterparts.
Delhi Airport, for instance, is a prime example where the non-aeronautical revenue, derived from duty-free, shop rentals and advertisements etc surpasses the income from flight operations. About 65% of its revenue streams from these commercial activities, highlighting a very sophisticated approach to passenger segmentation and engagement. And almost the same stands true for Mumbai & Hyderbad Aiports too where they drive a significant portion of their revnues from non aero operations.
Interestingly, Delhi Airport, rental income is higher than the rental income of prominent shopping malls like Phoenix Market City in Bangalore and Mumbai, highlighting the lucrative nature of airport retail.
From a business point of view, Airports have been pretty smart in capturing this. Why would somebody like to miss the golden opportunity of a captive audience, an affluent demographic coupled with enough time on hands to spare… Hence this shift towards non-aero revenues is no mere coincidence but a strategic move towards tapping into the superior prospect segmentation that frequents these spaces.
So, Next time when you’re zigzagging through the airport’s swanky halls, chasing after that last-minute gift or grabbing a quick coffee, Remember, You’re not just killing time; you’re investing in the airport’s side hustle, one indulgent splurge at a time!!!!