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How Do Airports Make Money?

Africa still has along way to go to commercialising the airport retail environment. Instead they load up the user charges to the airline, who in turn pass the charges on to the passengers by the way of higher fares.

This affects demand for tickets and travel because the charges are passed onto all passengers at the same rate per ticket, therefore isolating less wealthy travelers and forcing them out of the market entirely or by affecting how many times they travel in a year, for example.

We believe that if you allow the free market to dictate sales revenue this is a far better option - assuming the airports have the foresight to invest in retail activity.

Providing an attractive retail environment means more sales which means the airport authority takes more revenue share on sales, in addition to retail space rents.

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