Reflections on the ACI-NA Annual Conference and Exhibition

Last month, TADERA's sales and product leadership attended the ACI-NA and ACI World Annual General Assembly, Conference, and Exhibition in Toronto. Our General Manager, Steve Dewis, shared his reflections and key learnings from the conference, and what airports should be thinking about to ensure their technology solutions meet the changing needs of airports.

Reflections on the ACI-NA & ACI World Annual General Assembly, Conference and Exhibition

That's a wrap! Last month, I joined the TADERA sales and product leadership teams at the ACI-NA & ACI World Annual General Assembly, Conference and Exhibition in beautiful downtown Toronto. It was a privilege getting to meet and interact with so many executives responsible for ensuring the safe and effective operation of North America's largest airports. I’ve attended many conferences in various industries over the years, and I can honestly say that the ACI conference was one of the most innovative and thought-provoking conferences I’ve attended. I was impressed with how many airport executives were focused on the future and the solutions they need for continued success.

The conference brought together airport executives from hundreds of airports across North America and around the world. Key sessions focused on the challenges facing airports, industry trends, and more, while the exhibition floor showcased the latest innovations in airport technology and operations.

Key Learnings from the Committee Workshops

I especially enjoyed the Saturday committee workshops, which brought to light numerous challenges that the industry is facing. One conversation that stuck out to me was during the finance committee meeting, where airport directors candidly talked about the costs of running an airport, and how airports need to maximize non-aeronautical revenue to stay financially viable.

I learned that aeronautical revenue typically accounts for less than half of revenue at most North American airports, while operating costs continue to rise due to factors like inflation, labor, infrastructure, and more. To stay financially viable, an airport needs to maximize its non-aeronautical revenue.

Digging into this further, in North America the main sources of non-aeronautical revenue are parking, rental car fees, retail, food and beverage and property (leases). Finding a technology partner that can help minimize revenue leakage from these areas is paramount.

Revenue leakage can occur in numerous ways: inaccurate lease calculations, missed rent escalations, unbilled utilities, incomplete rental car transaction fees, or parking violations that go uncollected. This is exactly where TADERA's Airport Business & Revenue Manager (ABRM) provides value. Our GIS-integrated space management and automated billing capabilities help airports maximize the profitability of their space, and simplify the billing, invoicing, and revenue management processes.

The Importance of Public-Private Partnerships

Additionally, airports rely on grants from various government levels for up to 18% of their overall revenue. This makes it essential for organizations such as ACI to continue to advocate for consistent and predictable funding.

One takeaway from the conference was that airports are starting to look to the private sector for additional funding, through public-private partnerships and additional revenue opportunities such as airport lounges and experiences. It is likely we will continue to see airports transforming their offerings to include more unique customer experiences in their facilities to generate more revenue to grow.

These trends have several implications for airport technology investments. As airports expand their non-aeronautical offerings, they'll need more sophisticated systems to manage complex lease structures, variable revenue streams, performance metrics, and tenant relationships. The airports that succeed will be those that can have a 360-degree view of their airport, allowing them to make data-driven decisions using information that’s available in real time – a challenge that ABRM helps airports to solve.

Beyond the conference sessions, the real value came from connecting with current customers and prospective clients. Several conversations have already resulted in additional follow-up meetings, and our team is excited to share what TADERA has to offer airports. It was also exciting to see leaders from TADERA clients Reno-Tahoe Airport Authority and Greenville-Spartanburg Airport share the award for Excellence in Visionary Leadership.

Closing Thoughts:

For anyone in our industry, ACI conferences remain the premier venue for understanding where airports are heading and how we can best serve their evolving needs. The insights gained last week will inform our product roadmap and strategy as we continue our mission to provide purpose-built airport management software and integrated technology solutions that help airports improve their safety, efficiency and financial performance. Overall, it was a great week, and I am already looking forward to next year's ACI conference in Philadelphia!