Revenue Management for Rotterdam The Hague Airport

 

Background

Rotterdam The Hague Airport (RTHA) is part of the Royal Schiphol Group and the third airport of the Netherlands. Every year, about 2 million business people and holidaymakers fly to and from the airport. The airport also offers space for public air transport such as trauma and police helicopters.

RTHA above all wants to be safe, clear and fast and distinguishes itself by consistently putting the traveler first. Hospitality is central throughout the customer journey, from getting to the airport to boarding the flight.

Challenge

The revenue from paid parking fell due to the rise of competition. Derelict land near the airport was turned into parking lots from which passengers were taken to the terminal by van. These sites were exploited by parties that cleverly used the name of RTHA but also made promises they could not keep. With those promises and thanks to a low price, many customers were lured.

The question was: How can we ensure that travelers continue to park in an official RTHA car park without entering a price war.

Way of Work

RTHA is a comfortable, small-scale airport with a focus on comfort for an optimal price/quality ratio. With regard to parking, RTHA only wants happy visitors by being able to provide a suitable parking offer for everyone. That is why we have improved the propositions based on customer insights. In addition, a new campaign ensured that we were able to reach the specific target groups with the right message at the right time. The number of users has increased. The turnover per parked car has also increased due to a successful upsell strategy and the introduction of Revenue Management.

Parkers are divided into a number of segments, namely:

  • People that bring or pick traveller up usually park for a very short time. They park close to the terminal and do not reserve their parking
  • Business travelers, park 1-2 days, close to the terminal, reserve their parking last minute
  • Short leisure trips, 3-6 days, reserve their parking shortly before departure
  • Holidays, 1 week and longer, reserve their parking long before departure

Because the reservations take place online, we have opted for a simple proposition.

  • Premium parking, parking right in front of the terminal. Higher prices apply here because the elasticity is not great. People are willing to pay for the convenience. In the event of last minute vacancy, this space can still be sold with upsell campaigns.
  • Comfort parking, parking 4-6 minutes walk from the terminal
  • Budget parking, a newly created parking area a 10-minute walk from the terminal, aimed at the price-conscious traveller.

Through dynamic pricing and a pricing policy that enables segmentation between budget travelers and price inelastic business travelers, RTHA now steers towards an optimal utilization rate of the parking capacity at the highest possible average price.

Results

  • More customers
  • A higher average turnover per customer
  • Higher customer satisfaction
  • Upsell strategy
  • Maintained market share in the price-conscious segment
  • Growth of market share in the higher segment
  • A new pricing strategy has been designed and implemented.

Quote

421 / 5.000 Vertaalresultaten star_border Désirée Breedveld, Commercial Director RTHA: “RevenueMindz has helped us develop a vision for the future of parking at the airport. The way in which this vision has been translated into practical strategies for the commercial department has proven to be very effective. The implementation of Revenue Management for the parking fields is an example of this and has resulted in a significant increase in turnover.”

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