Presenting a Pricing Model for Non-Aeronautical Services of CIP and Baggage Wrapping

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Mahpour Alireza; Asadi Majid; Baghestani Amirhosein

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Journal Paper

Paper Information

Journal: JOURNAL OF TRANSPORTATION ENGINEERING Year:2023 | Volume:15 | Issue:1 Page(s): 3395-3414

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Information Journal Paper

Title

Presenting a Pricing Model for Non-Aeronautical Services of CIP and Baggage Wrapping

Author(s)

Mahpour Alireza | Asadi Majid | Baghestani Amirhosein | Issue Writer Certificate

Keywords

Baggage wrapping

Commercially Important Person (CIP) services

Non-aeronautical services

Airport revenue

pricing

Abstract

The decrease in airports' revenue in recent years and the small share of non-aeronautical revenues in Iran's airports show the necessity to pay attention to increasing revenue through the non-aeronautical sector. On the other hand, there needs to be a specific framework for the pricing of the non-aeronautical sector to aid airport management in control and increase revenue, as well as increase the desirability of private sector investment. Accordingly, this research aims to present econometrics models of pricing for some non-aeronautical services using available data on airports. For this purpose, after identifying the factors affecting the cost of services, data on 60 airports from different countries was collected in 2022. After that, the models of the pricing of the services were explained using the econometrics model of multivariate linear regression. The results show that the variables of the number of annual passengers, the average air distance of flights, and the monthly cost of welfare facilities (water, electricity, and gas) in the city affect the cost of Commercially Important Person (CIP) services. In the evaluation of baggage wrapping models, the variables of the number of flight destinations, the amount of cargo moved annually, and the monthly cost of welfare facilities have a significant effect on the cost of baggage wrapping. According to the results, the models estimated for the pricing of non-aeronautical services can be the basis for pricing the studied services in Iran's airports and help increase the revenue of the non-aeronautical sector in the coming years.

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