How Are Airports Diversifying Into Revenue-Generating Markets?

For a long time, airports have been missing out on a bigger piece of the theoretical travel “pie”, by staying firmly boxed into the label of “transit hubs” for passengers and cargo. Throughout recent years however, airports have expanded their diversification drastically in order to reduce dependency on traditional aviation related income, such as landing fees and passenger service charges. This move has been seen as essential, in order to enhance the passenger experience once and for all.

Heading to the airport is an experience in itself for many, particularly those which have been transformed into shopping and dining destinations.

When you’re not making the most of duty-free spending, your attention is being taken by a range of advertising opportunities from digital billboards as you make your way to your terminal, to branded lounges, airports have really found an opportunity to work with brands to enhance passenger experience.

Parking and ground transportation have proven to be lucrative revenue generators, but airports are going further. Partnering with car rentals and ride-sharing companies has quickly transformed the airport into the central hub to kick-start a travelers’ adventure.

Airports often have large tracts of land, much of which remains underutilized. Which is why many have built up mini cities including business parks, on-site hotels and conference centres, catering for every eventuality.

Given airports play a pivotal role in global logistics, it makes sense for airports to spot a revenue-generating opportunity. With investments in cargo facilities and fulfillment centers, airports are working with brands like Amazon to meet the global demands of eCommerce.

2024 is being marked as the year airports truly discovered the power of connectivity through travel eSIMs. Often referred to as a staple need for travellers, delivering reliable data was once a monopoly for traditional SIM networks and MVNOs.

Companies like eSIM Go however, unlock the doors to enabling travellers to stay connected easily, through many airports including Fraport (Wing), Sydney (Trip), Lufthansa, Swiss, Austria, Brussels, Turin and many more.

Providing an additional revenue stream through a number of consumption models (API wholesale eSIM, affiliate eSIM, or co-branded affiliate), airports have now positioned themselves to be instrumental in keeping passengers connected, wherever they travel.

Fraport’s Jens Paul, Vice President Retail Digital, explains the benefits of eSIMs through their Wing store:

“Connectivity is one of the new basic needs, and through working with eSIM Go, we can allow passengers to take advantage of lower rates”.

“We looked at different partners, although they seem to just want customers to sell their products on their own page…we were however, looking for a partner who wanted to enter into a true partnership with Fraport and grow the customer base together”

Team Lead Digital Product Management, Phillip Brounwarth followed-up:

“eSIM Go came up with a white label solution to allow Fraport to retain our own brand and identity, providing our own eSIM shop…This gave us the ability to generate ancillary revenue for airport and provide a better experience for our customers. As our own product, this meant we were able to put it in digital channels and advertise promotions inside our terminals.”

Take a look at Fraport’s experience with eSIM Go in full.

With airports driving innovation and passenger-focused solutions like eSIMs, the future of travel looks more connected than ever. By diversifying into innovative and passenger-focused markets, such as eSIM technology, they ensure financial sustainability while enriching the travel experience. This evolution reflects a broader trend of adaptability and innovation, paving the way for airports to thrive in a dynamic global landscape.

To find out more about how eSIMs can accelerate your business offering, speak to the experts at eSIM Go.