Hermes Airports (Larnaca) – Evaluating the commercial impact of a new landside shopping mall
Hermes Airports Ltd has recently opened a new terminal building as part of the 25 year BOT concession agreement. A multi-purpose extension is proposed which will include a shopping mall, entertainments and a hotel. AviaSolutions were assigned to evaluate the potential sales and income impact on the incumbent retail and F&B operators at the airport (airside and landside). This was achieved by:
- Developing an appropriate segmentation for the passenger types and retail / F&B categories.
- Evaluating the influence of the physical layout and nature of the offer in the proposed landside development on airport outlet sales.
- Reviewing and quantifying the impact of different airline processes and modes of arrival of departing passengers.
AviaSolutions were also required to propose a number of alternative contractual mechanisms to provide an appropriate level of compensation to maintain core airport non aeronautical revenues.