Uber Is Damaging The Airport Business

September 7, 2017 in Daily Bulletin

The Economist delved into airport revenues:

  • In 2015 airports across the world made 40% of their revenue from “non-aeronautical” services like duty free shopping.
  • In America about 20% of airport revenue comes from parking and rental car fees.
  • The rise of Uber has meant that fewer people are using these services blowing a hole in airport budgets.
  • Some airports have tried to ban Uber but travelers just opt to get dropped off close to the airport to circumvent the ban.
  • Airports could try to increase revenues from airport malls but a more frugal demographic has taken to the sky in recent years.
  • Travelers from China used to be lavish spenders but a crackdown on corruption has limited spending on expensive gift shopping.
  • And anyway, an extended security process leaves precious little time for passengers to spend at airport malls.

Read more on The Economist.