Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC): Marketing Mix Analysis [10-2024 Updated]

As Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) continues to navigate the evolving landscape of the aviation industry in 2024, understanding its marketing mix becomes essential for stakeholders. This analysis delves into the four P's of PAC's strategy—Product, Place, Promotion, and Price—highlighting how the company operates 14 airports across Mexico and Jamaica, enhances passenger experience, engages in effective marketing, and adapts pricing strategies to maximize profitability. Read on to discover the intricacies of PAC's approach and its impact on the market.

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Marketing Mix: Product

Operates 14 airports across Mexico and Jamaica

Grupo Aeroportuario del Pacífico (PAC) operates a total of 14 airports, including major locations in Mexico such as Guadalajara, Tijuana, and Puerto Vallarta, as well as Sangster International Airport in Montego Bay, Jamaica, and Norman Manley International Airport in Kingston, Jamaica .

Offers aeronautical services including landing and takeoff fees

The company generates significant revenue from aeronautical services, which include landing and takeoff fees. For the first nine months of 2024, PAC reported aeronautical revenues of Ps. 14,150,663, representing a decline of 4.3% compared to Ps. 14,780,643 in the same period of 2023.

Provides non-aeronautical services such as retail, food and beverage, and car rentals

PAC has successfully diversified its revenue streams through non-aeronautical services. In 9M24, non-aeronautical revenues increased by 21.5%, totaling Ps. 5,521,018, up from Ps. 4,544,249 in 9M23. This growth is attributed to enhanced retail, food and beverage offerings, and car rental services at its airports .

Investments in improvements to concession assets enhance airport infrastructure

PAC has made substantial investments in improving concession assets, with total expenditures of Ps. 4,314,977 in improvements during the first nine months of 2024, down from Ps. 4,767,624 in 2023, marking a 9.5% decrease. This investment is crucial for maintaining and enhancing airport infrastructure .

Diverse commercial offerings include VIP lounges and cargo operations

The company provides a range of commercial offerings, including VIP lounges and cargo operations. The consolidation of cargo and free trade zone business, particularly at the Guadalajara airport, has contributed to a significant increase in non-aeronautical revenues, with a reported growth of 38.7% in Q3 2024 compared to Q3 2023 .

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Marketing Mix: Place

Key Locations

Grupo Aeroportuario del Pacífico (PAC) operates 14 airports across Mexico, with key locations in major cities such as Guadalajara, Tijuana, and Los Cabos. These cities serve as critical hubs for both domestic and international travel, facilitating significant passenger traffic.

Airports Strategically Positioned for International and Domestic Travel

The airports managed by PAC are strategically positioned to enhance connectivity. For instance, the Guadalajara International Airport is a major gateway for flights to the United States and Central America, while the Tijuana International Airport serves as a crucial link for travelers heading to California.

Focus on Enhancing Passenger Experience through Modern Facilities

PAC is committed to improving passenger experience by investing in modern facilities. Recent upgrades include:

• Guadalajara Airport: Renovated terminals with enhanced security and check-in processes.
• Tijuana Airport: Expanded duty-free shopping and dining options.
• Los Cabos Airport: Improved baggage handling systems and customer service areas.

Partnerships with Airlines to Facilitate Connectivity

PAC has established partnerships with various airlines to enhance connectivity and service offerings. Key partnerships include:

• Aeromexico: Increased domestic routes linking Guadalajara and Tijuana.
• Volaris: Strategic collaborations for international routes to U.S. cities.
• American Airlines: Direct flights from Guadalajara to Dallas and Miami.

Ongoing Development Projects to Expand and Upgrade Airport Facilities

Several ongoing development projects aim to expand and upgrade airport facilities, reflecting PAC's commitment to enhancing its operational capacity and passenger experience. Key projects include:

These initiatives are part of PAC's broader strategy to enhance its airport infrastructure and service capabilities, ensuring that it meets the growing demands of air travel in the region.

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Marketing Mix: Promotion

Marketing focuses on enhancing brand visibility and passenger engagement.

Grupo Aeroportuario del Pacífico (PAC) employs various promotional strategies to enhance brand visibility and engage with passengers. The company emphasizes targeted marketing campaigns aimed at raising awareness of its services across its network of 14 airports. In 2024, PAC's marketing efforts have included a focus on digital channels, leveraging SEO and PPC advertising to improve online presence and attract international travelers.

Utilizes digital marketing strategies to reach travelers.

In 2024, PAC has allocated a significant portion of its marketing budget to digital platforms, reflecting the growing trend of online travel planning. The company reported a 38.7% increase in non-aeronautical services revenues, attributed partly to effective digital marketing campaigns that target both leisure and business travelers. PAC's digital strategies include:

• Social media advertising on platforms like Facebook and Instagram, aimed at promoting travel offers.
• Email marketing campaigns targeting frequent flyers and loyalty program members.
• Collaborations with travel influencers to enhance brand credibility and reach wider audiences.

Collaborations with airlines for joint promotions and discounts.

PAC has established partnerships with various airlines to create joint promotional offers. In 2024, these collaborations have included:

• Discounted flight packages in cooperation with Aeromexico, resulting in a 10% increase in passenger traffic on newly launched routes.
• Joint marketing initiatives with low-cost carriers like Volaris and VivaAerobus, which have helped boost bookings during off-peak seasons.

These partnerships have enabled PAC to enhance its visibility in the competitive airline market and improve customer acquisition through attractive pricing strategies.

Participation in tourism fairs to attract international visitors.

In 2024, PAC has actively participated in several international tourism fairs, including:

• FITUR in Madrid, where PAC showcased its airports and services to a global audience, leading to increased interest from international travel agencies.
• ITB Berlin, where PAC reported a 15% increase in inquiries from European travel operators.

These events have been pivotal in strengthening PAC's brand presence in the international market and fostering connections with potential partners.

Emphasis on customer service to build loyalty and satisfaction.

PAC places a strong emphasis on customer service as a crucial element of its promotional strategy. In 2024, customer satisfaction ratings increased by 12% as a result of enhanced training programs for staff, focusing on customer engagement and service quality. Additionally, PAC has implemented:

• Real-time feedback systems at airports to address traveler concerns promptly.
• Loyalty programs that reward frequent travelers with exclusive benefits and personalized offers.

This focus on customer service not only helps in retaining existing customers but also enhances the overall passenger experience, leading to positive word-of-mouth referrals.

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Marketing Mix: Price

Revenue from Aeronautical Services

Revenue from aeronautical services decreased by Ps. 630.0 million, or 4.3%, from Ps. 14,780,643 in 9M23 to Ps. 14,150,663 in 9M24. This decline reflects competitive pricing and a 3.4% decrease in passenger traffic.

Non-Aeronautical Revenue

In contrast, non-aeronautical revenue increased significantly by Ps. 976.8 million, or 21.5%, from Ps. 4,544,249 in 9M23 to Ps. 5,521,018 in 9M24. This growth indicates a strategic shift towards diverse income sources.

Pricing Strategies

Pricing strategies have been adjusted based on passenger traffic trends and market conditions. In 3Q24, total revenues rose to Ps. 8,232,667, an increase of 11.4% compared to 3Q23, driven by a 38.7% rise in non-aeronautical services. The aeronautical services revenue in 3Q24 was Ps. 4,627,601, down by 3.8% from Ps. 4,812,288 in 3Q23.

Tariff Structures

Tariff structures are aligned with regulatory guidelines, with compliance at 93.4% of maximum tariffs. The decrease in aeronautical revenues was primarily due to the reduction in passenger traffic and competitive pricing pressures.

Maximizing Profitability

To maximize profitability, Grupo Aeroportuario del Pacífico focuses on operational efficiency and cost management. Total operating costs increased by Ps. 769.5 million, or 20.6%, compared to 3Q23, primarily due to an increase in the cost of improvements to concession assets (IFRIC-12) by Ps. 436.9 million.

In summary, Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) demonstrates a robust marketing mix that effectively positions its operations in a competitive landscape. With a diverse range of services across its 14 airports, strategic locations in major cities, innovative promotional tactics, and adaptable pricing strategies, PAC is well-equipped to enhance passenger experiences and drive profitability. The ongoing commitment to improving infrastructure and expanding service offerings bodes well for its future growth and market presence.

Article updated on 8 Nov 2024

Resources:

1. Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.