Hotel Airport Transfer: A New Revenue Model

April 06, 2021 - 9:9 am
Hotel Airport Transfer: A New Revenue Model
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Hotel airport transfer is one way to create a new stream of revenue. To successfully do it, adopt a solution that automates your services.

No traveller wants their journey to be difficult. Thus, major hotels worldwide offer the best value offers to get passengers on their way. In several cities around the world, however, getting from the airport to town by private transport is disproportionately costly.

Why are airport transfers expensive?

Airport transfer is an important part of a traveller’s experience. Ground transportation cars, buses, or trains take travellers to and from airports, and integration of ground transportation services enables hotels, travel companies, online travel agencies, and flight booking systems to solve the first and last problem for their customers.

Many people travelling expensively from airports wonder whether the transport companies are taking advantage of them. Is it because of their lack of local public transport knowledge? Time pressure? Or probable tiredness after a long flight?

To understand this deeper, we should also consider that hotels and other transport companies charge high for airport transfers because it costs them more.

Specifically, the following are the details that hotels and transport companies consistently take care of for travellers:

1. To run airport transfer, hotels and other transport companies need to set a budget for costs and equipment, as well as what exactly this will entail.

The primary expenditure is the vehicle, which includes coaches, minibuses, vans, luxury cars, or limousines. As it will be central to the business, you need to ensure that it’s reliable and roadworthy.

2. The transfers are pricey in part because it is a round trip for any driver/company who does the trip and the time needed to travel is considered.

Professional drivers and other meet-and-greet team members are needed on the ground. They need to be at the airport a few minutes early to get the passenger, drive them where they are going, and then return to their home base. So, the cost of insurance, staff, gas, parking fees, etc. adds up.

Not to mention that private transfer is a perk for convenience. It includes services such as transporting luggage and belongings and loading & unloading. 

3. Ensuring safety is also of utmost importance.

Airport Transfers Insurance - which business operating vehicles pay for - covers accidents, collision, damage, fire, theft, storm, and hail among others, in transfers between any given locations and the airport. An additional expense is needed to secure this.

4. Some hotels arrange personalised services.

This includes, but are not limited to, a personal welcome at the airport arrivals area, assistance with luggage, a swift and seamless transfer to the hotel or any other location, complimentary Wi-Fi internet, payment at the hotel. It is just reasonable to charge for these.

5. There are also unavoidable instances that lead to surcharges.

Examples are flight delays, guests coming out late thus the transfer company does not wait or may charge extra for this, and other costs (e.g. parking costs).

6. The demand in the area, or the amount of people transiting through the airport, directly affects the business prospects.

Simply put: the greater the amount, the higher number of passengers needing an airport transfer.

Hotels within reasonable driving distance of a high-use terminal likely require the service. Alternatively, those in a remote area with an airport that only services occasional flights, meaning that although the flights may carry fewer passengers, may have a monopoly on services in the local area.

7. Another miscellaneous reason is the airport link may have been specially constructed at a great cost.

Let us take a look at the Sydney airport link, a road that was built and funded by private investment for the 2000 Olympics, which cost $900 million. Travellers pay extra to use Airport Link compared to other trains in Sydney. Why?

Airport Link Company (ALC) manages the stations (Green Square, Mascot, Airport Domestic, and Airport International Train Stations) located in the nine-kilometre Airport Line tunnel, which is 23 metres below the earth’s surface. ALC manages them with the help of more than 70 employees and 50 contracted maintenance, security, and cleaning staff.

The company also staffs a 24 hour, 365-days-a-year operations room, is open every day of the year and assists with the movement of more than 100,000 trains each year on the Airport Line. As a private company that participates in the provision of Public Transport for Sydney, ALC is not subsidised by the government or the taxpayer. Thus, to fund the infrastructure and conduct the company’s operational activities, ALC charges a Gate Pass at the airport stations, which is an amount payable in addition to the standard rail ticket.

8. The distance can also be an issue.

Generally (with good city planning) the airports are a long distance from the city. As a result, the maintenance, fuel, and time add up.

Los Angeles International Airport, Los Angeles, United States

9. Another thing: there is rarely true competition among airports or other facilities, so they would have no incentive to push ground operators to lower prices as a differentiator.

Travellers aren't a voting bloc, so they have no political recourse. Indeed, politicians rather take advantage of this situation, passing stiff taxes and fees on hotel rooms, shuttle operators, and car rentals on visitors who might rather be thanked for contributing to the local economy.

10. Dealing with some problems on the ground can sometimes be stressful.

This is a no brainer. Communication and coordination of parties involved in travel can be a source of headache, so maybe an expensive airport transfer is compensation for this hassle.

It all boils down to the fact that airport transportation is often exorbitant simply because it can be.

Airport travellers are captive. Most are on the road for business, and business travellers are a relatively time-sensitive, and price-insensitive bunch. And, psychologically, the price may not appear such a shock for passengers who have just been on a plane journey costing 10 or 20 times as much.

A busy Liverpool Street Station in London

turpal as a Transportation Solution for Hotels

Needless to say, airport transfer is one way to make money. Hence, it is a better option for the hotels to offer airport transport themselves to lessen the hassle on the part of the passenger. Doing so not only leads to higher revenue, but increased customer satisfaction as well.

However, as mentioned in the last reason above, dealing with transport companies can be a challenge. To address this, you must use an effective solution to integrate the ground transfer functionality with your booking systems, enabling you to gain customer loyalty and effectively monetise the last steps of every trip, and more importantly, take the inconvenience of operation from the hotel team.

And turpal can do just that.

turpal is a travel technology solution that serves as a platform to connect guests, the hotel, transfer suppliers, and the operation team; thus avoiding confusions and delays. On top of that, turpal can provide:

  • The best rates from the marketplace of leading professional transfer suppliers in the town, guaranteeing the quality of service 
  • System features and expert team that will take responsibility for finding guests at the airport and communicating for schedule
  • A greeting team at the airport, presenting the guest’s name board with the hotel logo   
  • Overview of the hotel services such as restaurant timing and facilities available at the hotel
  • Option to communicate using the guest’s language 
  • Seamless service by connecting to the hotel PMS to sell transportation while doing the booking
  • Increased revenue through the sales of extra services that go with an app

A Revolution on Hotel Airport Transfer

Ground transportation allows travellers to control every step of their journey right from their desktop or other devices anytime, anywhere.

turpal will revolutionise your hotel’s airport transfer and is the next revenue model for hotels.

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