Small is beautiful

Airports handling fewer than five million passengers annually face unique challenges in generating commercial revenue due to limitations in space and retail variety.

To build commercial revenue, small airports must develop different revenue streams through enhancing the passenger experience, leveraging technology and development and focusing on the local brand identity.

Enhancing the passenger experience
Small airports often benefit from passengers who know the airport well or travel through multiple times a year. This often means that returning passengers are less stressed when travelling through the airport. However, for passengers who rarely go through the airport or are leisure/holiday passengers, stress levels can be high which will impact commercial spend.

If an airport improves many of the operational facilities, such as a more efficient security process, digital check-in and experiential/digital art activation, attractive retail options can significantly reduce passenger stress which leads to an increase passenger spending.

Madeira Airport (4.6 million pax in 2023), has recognised that by reducing stress and enhancing the passenger experience, commercial spend will improve. As well as improving the infrastructure and services, the airport introduced a dedicated care team to assist passengers and ensure a smooth travel experience for both new and returning passengers. These improvements also culminated in Madeira Airport winning the Best European Airport under 5 million passengers at the 2023 ACI Awards.

Leveraging technology and innovation
Small airports can also build commercial revenue by leveraging technology and innovation. This can be done through using digital marketing and data analytics to better understand an airport’s passenger behaviour and tailor the commercial provision accordingly. This ensures that airports can be efficient with the limited space available and introduce the appropriate retail and F&B sub-category mix for the passenger mix.

Implementing efficient digital services, such as online parking reservations, can enhance convenience for passengers and increase the use of paid services. Simplifying processes and reducing wait times can lead to higher customer satisfaction and repeat business.

Billund Airport (seen above) in Denmark (3 million pax in 2023) uses data analytics to increase commercial revenue and operational efficiency. This is done through implementing passenger predictability technology to forecast passenger flows and reduce congestion in peak times, this improving the passenger experience. The airport has also introduced its own e-commerce platform to enable passengers to pre-order and purchase duty free items online before arriving at the airport, capturing retail sales that may have otherwise been missed due to time constraints.

Relationships with the local community
Small airports are often located close to a country’s regional centre which provides an opportunity for airports to build strong relationships with the local community and regional businesses. These airports can collaborate with local tourism boards, hotels, and attractions to create joint marketing campaigns and special offers.

Additionally, small airports can support local businesses by offering them retail space at competitive rates. This not only helps the local economy but also provides unique shopping and dining options for passengers. These partnerships can foster a sense of community and encourage loyalty from both passengers and local residents.

Paphos International Airport (3.6 million pax 2023), utilises the relationship with the wider community through various initiatives and partnerships aimed at fostering local engagement and promoting a sense of place within the airport.

The airport promotes the Cypriot culture by showcasing an extensive range of local products and traditional crafts including pottery, jewellery and local food through the commercial area. Paphos International Airport also houses various art installations that showcase local artists and culture. ‘Past Presence’ was a modern sculpture placed at the entrance of the airport to greet passengers. The piece was inspired by the Chalcolithic period and reflects the regions historical significance by representing some of the deities that are found within Paphos.

You can read about Pragma's work with Pathos here.


Small airports under five million passengers can build commercial revenue by focusing on enhancing the passenger experience, leveraging technology, and fostering the local community. By adopting these strategies, they can create a sustainable financial model that supports their growth and contributes to the local economy.

Katie Hastings