FAB 2024
Diversifying non-aeronautical revenues at Ontario International Airport
In an illuminating opening session at FAB 2024, Ontario International Airport CEO Atif Elkadi and Chief Revenue Management Officer Elisa Grey outlined the company’s drive for growth, its innovation agenda and its emergence as a progressive, disruptive voice in the North American airport market.
Elkadi introduced guests to the remarkable Ontario International Airport story, notably its status as the fastest-growing airport in the USA by year-on-year percentage growth over the past five years, and its position as a gateway to the thriving economic region of Southern California.
“This year we will serve more than 7 million passengers, our highest annual total since 2008, before the airport was returned to local ownership in 2016 [it was previously run by Los Angeles World Airports -Ed].
Atif Elkadi (left) underlined the importance of non-aeronautical revenues in the rise of Ontario International Airport
“International travel has more than doubled in the past year, with daily flights to Taipei, Mexico and El Salvador. We also offer non-stop flights to major international gateway airports like New York JFK, Atlanta, Dallas Fort Worth, Dallas Love Field, Seattle, Charlotte and Phoenix.
“Since 2016 we have made numerous investments in the airport, including a new simplified international arrivals programme using biometrics, a new Global Entry Enrolment Center for local residents, a state-of-the-art baggage recapitalisation project, runway and taxi reconstruction, additional 500 parking spaces, new electric shuttle buses and restructured concession programmes.
“Recent additions to our programme include 3Sixty Duty Free, Chick-fil-A, two Dunkin’ units, Brewery X, a Top Golf swing simulator plus we have a long-term concession agreement with SSP to develop new food & beverage outlets and refurbish older stores.”
Elisa Grey addressed how advertising, retail and dining partnerships have boosted income and reputation at the airport
Elkadi addressed the funding shortfall across the airport network in North America, with government support a key requirement.
Beyond this, Ontario International Airport is working on strategies to boost non-aeronautical business growth, allied to consumer research to better understand the audience. Initiatives include designing of flexible outlets, implementing promotional offers to lift spend, expanding to-go and date-delivery options, creating loyalty programmes that link back to airline miles and offering added value experience within the F&B outlets.
Here Elkadi hailed the example of Brewery X in Terminal 2, a 50:50 joint venture with the airport.
“We decided to put our money where our mouth is. That’s how much we believe in this airport and this growth. We said let’s do it together, side by side. We are doing 50% of the capital and we get 50% of the revenue. On top of that, the partnerships that Brewery X has across Southern California now incorporate Ontario Airport, and that is big for us.
Atif Alkali: “This year we will serve more than 7 million passengers, our highest annual total since 2008”
“So far Brewery X has been driving revenue and offers customers added reasons to visit, enhancing the conversion rate,” he said.
Grey reflected on strategic shifts that had taken place during the pandemic and the airport’s decisions to diversify and innovate its revenue generation.
“We are disruptors and have shifted towards building long-term relationships rather than transactional interactions with our partners.
“Taking our advertising and partnerships in-house not only led to a tripling of advertising revenue but also led to other potential revenue streams.”
Ontario Airport partnered with Fuse Advancement to establish a new advertising and partnership sales model within the revenue management division.
The wonderfully creative and experiential Brewery X, a recent addition to the airport’s F&B portfolio
“The main goal was to have continual opportunities for revenue generation, building on joint relationships,” said Grey. “Our Fuse Advancement partnership has not only paved the way for the airport to continue to diversify its revenue streams through advertising, but has also unlocked the blueprint for other airports to take control and paint their own narrative in creating non-aeronautical revenue opportunities.”
She highlighted advertising, retail and dining partnerships that boosted income and reputation for the airport, from digital display to the Brewery X opening to the recent unveiling of CaliforniaScienCenter in T4, which adds an immersive experience to the location.
“This is a new, exciting passenger amenity but can also potentially lead to dwell time and lead to more spend at our other outlets,” added Grey.
Elisa Grey (left) led Martin Moodie (right) and Dermot Davitt (second left) on a memorable tour of Ontario International Airport's two terminals just before FAB+ 2024 began. Pictured with them are (centre) Cyrus Baseghi, President of OSSI, which develops high-powered software for hospitality institutions; and Fuse Advancement CEO Scott Jacobson, two of the creative minds behind the transformation of digital assets and partnerships at the airport.
On the bigger picture, Grey emphasised the growing significance of non-aeronautical revenue for Ontario International Airport – it has outstripped aeronautical revenue since the pandemic.
She highlighted four pillars for incremental growth – optimising passenger usage of the airport, continued investment in marketing and technology, embracing the uniqueness of the region and adding value through new strategies.
Elkadi concluded: “None of what we have done would be possible without the people of Ontario International. It is all of our staff and all our teams. They are truly passionate about what they do. It’s amazing that we get to work with them, and we are very lucky to have them on our team to help the airport grow. And even after this conference is done, this is not the last that you have heard of us at Ontario International.”
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FAB eZine
August 2024
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