Abstract:

The issue of the pricing of airport advertising revenue, a crucial component of non-aeronautical income in airports, holds significant importance in the operational management of airports. Currently, most airports in China commonly adopt a pricing mechanism based on historical price inertia, while also making adjustments to advertising prices by appropriately considering the total passenger flow for the current year. This pricing mechanism struggles to effectively reflect the true value of advertisements in different locations. This paper proposes a pricing mechanism based on passenger traffic to assess the relative value of advertising spaces within airport terminals. Utilizing a mathematical model combined with the physical layout, and flight and passenger data of the airport, we calculate the distribution of passenger traffic and subsequently evaluate the value of advertising spaces based on this information. Additionally, we apply this approach using sample data from the Capital International Airport. The findings demonstrate that the application of this model can reveal variations in the value of airport advertising spaces with the same media format across different spatial and temporal contexts. This lays the theoretical groundwork for airport advertising management entities to further implement differential dynamic pricing strategies and flexible advertising placement policies.

Key words: air transportation, airport advertising, value assessment, passenger traffic, passenger profiling