Business intelligence set to lift retail profits at Manchester Airport

Manchester Airport will track how much travellers spend in shops

Manchester Airport is using business intelligence software to help replace revenue lost to the rise of low-cost airlines.

Lower landing fees for budget carriers, coupled with stricter security measures that reduce passengers’ time in retail outlets, are slashing airports’ margins.

In Manchester, Oracle Business Intelligence software is already used to analyse passenger and flight movements to improve staffing and efficiency. The airport is now adding retail data to determine spending trends and boost sales at air-side shops.

Retail data is valuable, said Manchester Airport information services business consultant Martin Bell.

But previous reporting methods were disparate and manual.

‘We are a data-rich company but were not using the information effectively,’ said Bell.

‘By consolidating the data into a single view, we can get a better insight into our passengers and make better business decisions.’

Analysing aviation data remains the priority. But combining it with retail and parking information gives a clearer view of passenger purchasing decisions, said Bell.

‘Now we can determine how long people spend airside and make more informed decisions on how we manage our retail area,’ he said.

‘Airports have traditionally regarded retail as secondary to aviation, but we are under pressure because of the rise of low-cost carriers and we realise that we need to be more imaginative,’ said Bell.

Improving retail performance will be increasingly important to all airports, said Forrester Research analyst Henry Harteveldt.

‘Using business intelligence software to map passenger data is a wise move and will also make Manchester Airport a better landlord,’ he said. ‘The airport can tell its retail tenants what products are popular, when to expect heavier traffic and when to bring in additional stock.’