The use of Business Intelligence to maximise airport retail activities

1. The use of Business Intelligence to maximise airport retail activities John de Giorgio Concessionaire Analyzer+ CEO - Shireburn Software Ltd www.shireburn.com/airports

2. Agenda • Context • What are the issues? • What is the opportunity? • What’s the solution? • Concessionaire Analyzer+

3. Context • Downward pressure on landing fees from carriers • Airports are increasingly reliant/focused on retail sales • Revenue share lease agreements common in airport terminals • fixed rent, thresholds, minimum guarantees etc. • Usually identical % across products within a concession despite different product margins • Trend towards leases based on per pax fees

4. What are the Issues • Need to analyse retail sales to drive airport’s decision-making but….. • Manual collation of concessionaire sales data by airports • Inefficient • lack of control & auditing • latency of information • Generally data is aggregated per day • No transaction/product level details • Barriers to deep analysis of retail data

5. What’s the Opportunity? • to analyse retail sales transaction data through Business Intelligence techniques: • to gain an understanding of retail patterns & trends • sales by route, carrier, product category etc. • to be able to improve negotiations with concessionaires and airlines • assess effect of promotions • tweak retail sales mix • maximize retail revenues and income

6. Prerequisite • Automate collection of concessionaires’ sales data into a data warehouse • Transaction level detail • Ease upload of sales data by concessionaires • Web services • Standard file formats • Automation possibilities

7. Business Intelligence (BI)

8. Business Intelligence • Fancy name for reporting? • Analyse, monitor, plan & project • Dashboards, scorecards, KPIs • Combine sales, passenger, lease & property data into analysis

10. BI Examples • Income/m2 by concessionaire • Sales per passenger by route • Income by route, airline, day/time etc. • Income per pax by route, airline etc • Income by product category • Top 20 product categories by income • Gross margin per pax by concessionaire • Important for per pax fee monitoring • KPIs & Traffic Lights

12. Secondary Effect Opportunities • Implement revenue sharing at product category level to reflect product margins • Facilitate move to per pax based fees • Improve control of concessionaires & reduce fraud, under-reporting etc • Completeness checks • Sales gap analysis • Mystery shopping opportunities • Implement standard POS solution for some/all concessions • opportunity for real-time sales data

13. The Solution?

14. Overview of Solution • Concessionaire Analyzer + • Sales data warehouse • Airport.POS (optional) • Airport specific point-of-sale • Concessionaires’web portal • Access reporting • Data Upload & download • Business Intelligence & Reporting • Integration with FIDS • Integration by concessionaires

15. Concessionaire Analyzer + • Collects sales data from concessionaires • from Concessionaires’ POSs • from Shireburn’s Airport.POS • Analyses retail patterns • by carrier, route, day, time, category • Improves negotiations with carriers & concessionaires • Allows better analysis of sales patterns and adjustment of retail mix. • Allows integration to concessionaires back-end systems • Allows billing of concessionaires

16. Airport-POS • Optional POS addressing needs of airport concessionaire • Integration with FIDS • Destination-dependant pricing/tax • Support for airline vouchers • Staff sales monitoring • Integrated with Concessionaire Analyzer + • Architected for resilience • Network independent • Quick-swop hardware replacement through USB • Optional server fail-over architecture

17. Airport.POS

18. Technical Architecture Centralised Data Warehouse

19. Technical Architecture Microsoft Windows Server MySQL Microsoft Windows Server MySQL Centralised Data Warehouse

23. Supports mix of concessionores’ own POS solutions & Airport.POS

25. Airport.POSStandard POS features • Fully functional POS • Bar codes, buttons, touch screen, keyboard • Supports products, services and catering • Multi-currency • Automated Promotional Schemes • E.g. buy 1 get 1 free etc • Extensive security, monitoring, auditing & logging • Multi-salesperson operations • Cash reconciliations with Float Management • Automated software updating • Connected & fail-over operations • USB data/configuration backup for fast recovery

26. Airport.POSAirport Specific Features • Link to Flight Information Systems for upcoming flights • Tagging of sales to a flight when airside • Scanningof boarding cards – MICR & 2D Bar codes • Manual selection of flights from upcoming flights • Multi-currency – change management & reconciliations • Support for airline voucher payments/reporting • Staff Sales Monitoring

27. Integration by Concessionaires • Concessionaires’ POSs CA+ • CA+  concessionaires’ back-end systems

28. Multiple Integration Methods • Integration to concessionaires’ systems via web services/SDK • Manual file upload/download via portal • Automation via Microsoft Excel

29. Concessionaire Portal • Reporting by concessionaires • View of a concessionaire’s performance relative to all airport • Sales as proportion of passenger traffic • Upload & Download data • View uploads and support files • User administration & security • Optional centralized Cash Reconciliation

30. More info at www.shireburn.com/airports Carolina Court Ta’ Xbiex, XBX 1425 Malta Tel +356 2131 9977 info@shireburn.com www.shireburn.com/airports