Airports Need New Sources of Revenue

Air travel will likely remain volatile for the foreseeable future leaving domestic and regional airports continuing to worry about various shrinking sources of revenue affecting their bottom lines. Most airports don't need to be told that business travel is not likely to resume anytime soon as video conferencing continues to be the safer alternative for companies and their employees; or that major carriers are limiting their flight routes and capacities in order to stay competitive or just alive during the pandemic.

With fewer air travelers come smaller streams of revenue for airports. Airport parking lots are well below capacity; same goes for restaurants and bars still operating. Flight carriers, the main source of revenue for airports, are also financially constrained themselves.

Digital Signage=Revenue

The pandemic has already brought about many changes to air travel. From mandatory face masks to COVID testing, the COVID shift will be similar to what air travelers experienced after 9/11. In order to thrive in the post-Corona world, airports will have to change by producing new streams of revenue.

One way to do this is to leverage digital signage. Most airports already have maps and other signs directing travelers on where to go. But with digital signage, airports can dynamically update the latest information for travelers. Digital signage is a convenient and easy way for airports to provide health and safety announcements doing away with the costs of producing new signs with each new development, or risk leaving themselves exposed to a potential lawsuit. Additionally, digital signage can update terminal and gate closures in near real time as changes are bound to happen. Most significantly, however, digital signage is a straightforward way for airports to advertise and display promotions to travelers.

Airports looking to fill their parking lots can show targeted parking ads to an already captive audience inside their terminals. In turn, travelers looking for ways to socially distance on their way to the airport know that they can skip the Lyft or Uber next time they fly. Additionally, partner restaurants and bars in airports can leverage these to promote their own specials and drive customers to their locations. It's a win-win for both airports and partners to increase their respective revenues.

Moreover, digital ads and promos are not limited to the airport itself. Local businesses can promote their own sales and attractions for a small fee as well. In order to decrease conflicts of interest with partners inside the airport and local businesses outside of it, airports can set a 5-10 mile restricted radius on what can and cannot be promoted, i.e. not promoting direct outside competitors to partners inside the airport. And, while airlines may be tightening their ad dollars, being able to specifically target people already traveling is an advantage airports have over other ad locations. Thus, digital signage brings another potential source of revenue to airports worried about their bottom lines.

Extra Income

Excuse the pun, but air travel over the next couple of years will have its ups and downs in the age of COVID. Airports should be looking for ways to increase their revenue in the easiest and most straightforward way possible. Digital signage ads and promos provide airports with those much needed extra sources of income.

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