ART|AT|THE|AIRPORT.

This concept of "Art at the Airport" offers a fascinating and innovative way to turn waiting time at airports into a valuable and inspiring experience, especially for first-class passengers. Here is a summary of how the concept can be further developed:

Turning Waiting Time into Opportunities:

The idea of offering or renting VR headsets to first-class passengers during their waiting time is brilliant. This transforms an otherwise dull period into an inspiring journey through art history. The VR experience can be thematically tailored to the country or region where the airport is located, or even to the airline, featuring artworks that reflect their cultural heritage.

A Journey Through Art History:

The VR experience could provide a virtual tour of some of the world’s most iconic artworks. Imagine a virtual visit to the Louvre to see the Mona Lisa or the Sistine Chapel in the Vatican. This can be combined with explanations and stories about the history and significance of these works, adding an educational element to the experience.

Platform for Contemporary Artists:

In addition to classic artworks, there can also be space for contemporary artists and galleries. This offers a platform for new and emerging talents to showcase their work to an international audience. Artists and galleries can choose packages to present their work, and an entrance fee could be charged for access to certain exclusive exhibitions, such as those featuring renowned names in the art world.

Making Art Accessible to Everyone:

While some parts may be exclusive, the core concept is to make art accessible to everyone traveling through the airport. By collaborating with artists, galleries, and cultural institutions, the airport can position itself as a cultural hub that extends beyond the airport itself.

Airport as a Cultural Hub:

The project can be a strategic move to position airports as more than just transit points. They can be seen as cultural hubs where travelers have the opportunity to relax, be inspired, and learn, offering them an unforgettable experience.

Collaborations and Events:

By collaborating with art institutions and museums, temporary exhibitions and events can be organized. This can lead to collaborations that continue beyond the airport, making the airport play a role in supporting and promoting art and culture on a broader scale.

This concept has the potential not only to add value to passengers but also to transform airports into significant cultural hubs that uniquely bring together art and travel.

Budget for "Art at the Airport" Digital Twin Project (Adjusted)

1. Project Management (You)

• Project Initiation and Management: €75,000
• Time Investment: 12 months
• Cost: €75,000

2. Financial and Legal Arrangements (Anas)

• Financing Consultant: €50,000 (annual salary or project-based)
• Legal Advice and Contract Management: €25,000 (legal firm or in-house)
• Cost: €75,000

3. Development of the Digital Twin

• 3D Modeling and Rendering of the Virtual Space: €100,000
• Development of the VR/AR Experience: €150,000
• Integration of Artworks and Interactive Elements: €75,000
• Testing and Optimization of the Digital Twin: €50,000
• Cost: €375,000

4. Licenses and Software

• Licenses for VR/AR Software Usage: €20,000
• Licenses for 3D Modeling Software: €10,000
• Cost: €30,000

5. Digital Content Creation

• Fees for Artists and Content Creators: €50,000
• Production and Integration of Digital Content (excluding artworks): €25,000
• Cost: €75,000

6. Marketing and Publicity

• Digital Marketing Campaigns (social media, online ads): €40,000
• PR and Collaborations with Art Institutions: €30,000
• Cost: €70,000

7. Educational Programs

• Development of Digital Workshops and Lectures: €20,000
• Production of Educational Material: €10,000
• Cost: €30,000

8. Overhead Costs

• Administrative Costs: €15,000
• Contingencies (10%): €35,000
• Cost: €50,000

Total Budget

• Project Management (You): €75,000
• Financing and Legal Aspects (Anas): €75,000
• Development of the Digital Twin: €375,000
• Licenses and Software: €30,000
• Digital Content Creation: €75,000
• Marketing and Publicity: €70,000
• Educational Programs: €30,000
• Overhead Costs: €50,000
• Total Costs: €780,000

This budget is specifically aimed at creating and launching a fully digital twin of the art fair. The project includes advanced 3D modeling, VR/AR development, and the setup of digital educational programs, as well as marketing to reach a broad audience. This should provide a solid foundation for the successful realization of the project.

Potential GCC Contribution

The Gulf Cooperation Council (GCC) may potentially be interested in supporting certain cost items within the "Art at the Airport" project, especially if the project aligns with their objectives in cultural promotion, innovation, and tourism. Here are some cost items that the GCC might be willing to pay for:

1. Development of the Digital Twin

   • Why: The GCC countries often invest in innovative technologies and digital infrastructure to position their region as a technologically advanced and culturally dynamic area.
   • Potential Contribution: The GCC might be interested in financing the development of the digital twin, including 3D modeling and VR/AR experiences, as this highlights the region's innovation and technological capabilities.
   • Cost Item: €375,000

2. Marketing and Publicity

   • Why: The GCC countries benefit from promoting their region as a center of culture and art, which can strengthen the tourism industry. By investing in marketing and publicity, the GCC can increase the visibility of the project both within and outside the region.
   • Potential Contribution: They could contribute to digital marketing campaigns and PR initiatives to promote the project.
   • Cost Item: €70,000

3. Educational Programs

   • Why: The GCC is often involved in promoting education and culture. By supporting educational programs, they can help enhance the cultural value of the project and spread art knowledge throughout the region.
   • Potential Contribution: The GCC could contribute to the development of digital workshops and lectures that promote art education in the region.
   • Cost Item: €30,000

4. Financing and Legal Aspects

   • Why: To make the project possible, the GCC might choose to support the financial and legal aspects, especially if the project is of strategic importance to the region.
   • Potential Contribution: The GCC could help cover the costs of financial consultancy and legal services.
   • Cost Item: €80,000

5. Project Management

   • Why: If the project holds significant cultural value for the region, the GCC could help support the costs of project management to ensure its successful execution.
   • Potential Contribution: They might consider covering (part of) the project management costs.
   • Cost Item: €75,000

6. Licenses and Software

   • Why: The GCC might also invest in the necessary software licenses and technology to keep the project running.
   • Potential Contribution: They could cover these costs, given the importance of technology in the project.
   • Cost Item: €30,000

Total Potential Contribution from the GCC

Depending on their interest and strategic goals, the GCC might be willing to take on a significant portion of the costs, especially if the project contributes to promoting the region in terms of art, culture, and technology. The total cost items that the GCC might consider covering amount to approximately:

• Total Potential Contribution: €660,000

This amount is a rough estimate and would depend on further negotiations and the strategic value of the project for the GCC.

Strategic Value of the Project for the GCC

The strategic value of the "Art at the Airport" project for the GCC can be approached from several perspectives. Here are the key aspects that contribute to its strategic value:

1. Cultural Diplomacy and Soft Power

   • Strengthening Cultural Position: The project can help the GCC strengthen its position as a center for art and culture in the world. By offering an innovative art fair, the GCC countries can promote their image as cultural and artistic leaders, contributing to their soft power on the global stage.
   • Attracting International Talent: By providing a platform for both local and international artists, the GCC can make the region more attractive to creative talent and stimulate investments in the cultural sector.

2. Technological Innovation and Modernization

   • Showcase of Innovation: The development of a digital twin and the integration of VR/AR technologies demonstrate that the GCC is at the forefront of technological innovation. This project can contribute to the region's reputation as a leader in digital transformation, which is attractive to tech companies and investors.
   • Supporting Smart City Initiatives: Many GCC cities, such as Dubai and Riyadh, are developing "smart cities." This project fits perfectly within that strategy, as it integrates digital technologies with culture and art, contributing to the broader goal of urban modernization.

3. Economic Diversification and Tourism

   • Strengthening the Tourism Sector: By offering a unique, immersive art experience at airports, the GCC countries can attract more tourists and promote their airports as destinations in themselves, not just transit points. This aligns with the broader goal of economic diversification by increasing tourism revenue.
   • Stimulating the Creative Economy: The project can help stimulate the creative sector in the region, which is an important part of the economic diversification strategies of many GCC countries.

4. International Collaboration and Branding

   • Promoting the Region on the Global Stage: By collaborating with international artists and cultural institutions, the project can put the GCC in the international spotlight in a positive way. This can lead to new partnerships and trade opportunities, as well as an enhanced international reputation.
   • Unique Airport Branding: Airports in the GCC can distinguish themselves from others worldwide by offering this unique art experience, which strengthens their brand and makes them more attractive to premium travelers.

5. Education and Knowledge Exchange

   • Supporting Cultural Education: By integrating educational programs, the project can contribute to spreading knowledge about art and culture in the region. This fosters a culture of appreciation for art among the local population and can serve as a catalyst for further cultural development.
   • Inspiration for Young Artists: The project can serve as a source of inspiration for emerging artists in the region, contributing to the development of local talent and the creation of new art movements that put the GCC on the cultural map.

Conclusion

The strategic value of the "Art at the Airport" project for the GCC lies in the opportunity to strengthen their cultural and technological leadership, promote economic diversification, and position the region as an innovative and cultural hub on the global stage. This project aligns with the broader objectives of the GCC in tourism, urban modernization, and international collaboration, and can contribute to an enhanced international reputation and attractiveness of the region.

Countries and Airports Involved

For the "Art at the Airport" project within the GCC region, it would be strategic to collaborate with some of the key countries and airports that already have a strong international reputation and are willing to invest in cultural and technological advancement. Here are the countries and airports that could potentially participate:

1. United Arab Emirates (UAE)

   • Dubai International Airport (DXB): One of the busiest airports in the world, known for its luxury amenities and innovation. DXB can serve as a major hub for the project, with the UAE strengthening its status as a cultural and technological center.
   • Abu Dhabi International Airport (AUH): As a major hub in the region and with proximity to cultural icons like the Louvre Abu Dhabi, AUH would be an excellent location to host the project.

2. Saudi Arabia

   • King Khalid International Airport (RUH) in Riyadh: Riyadh is at the center of cultural and economic reforms in Saudi Arabia. This project would fit within the framework of Saudi Vision 2030, which focuses on developing the tourism and cultural sector.
   • King Abdulaziz International Airport (JED) in Jeddah: Jeddah, as the gateway to the holy cities of Mecca and Medina, also has a cultural dimension that can be emphasized through the project. Moreover, Jeddah is positioning itself as a cultural capital.

3. Qatar

   • Hamad International Airport (DOH) in Doha: As one of the most modern airports in the world, and with Qatar’s strong focus on art and culture (as seen in the Museum of Islamic Art and the annual Doha Art Fair), Hamad International Airport would be an ideal location for the project.

4. Bahrain

   • Bahrain International Airport (BAH): Bahrain is known for its rich history and cultural heritage. By hosting the project at Bahrain International Airport, the country can further expand its cultural influence, particularly in the context of modern art.

5. Oman

   • Muscat International Airport (MCT): Oman has a strong tradition of culture and art, and the project can help modernize these traditions and integrate them with technology, enhancing the airport’s appeal.

6. Kuwait

   • Kuwait International Airport (KWI): Kuwait has a thriving art scene and has increasingly positioned itself as a cultural center in the region. The project can help Kuwait internationally profile its art sector.

Strategic Value by Country

• UAE: Positioning as a global leader in luxury, culture, and technology.
• Saudi Arabia: Supporting Vision 2030 with a focus on cultural and tourism development.
• Qatar: Strengthening Qatar’s reputation as a hub for art and culture.
• Bahrain: Expanding Bahrain’s cultural influence in the context of modern art.
• Oman: Modernizing traditional art practices using technology.
• Kuwait: Internationally profiling Kuwait’s thriving art sector.

These countries and airports would collaborate to launch the project, each with its own unique angle and cultural contributions, giving the project broad regional appeal and strategic value.

Airlines Associated with Each Airport

Here is an overview of the major airports in the GCC countries that could participate in the "Art at the Airport" project, along with the airlines based at these airports:

1. United Arab Emirates (UAE)

   • Dubai International Airport (DXB)

     • Airline: Emirates
       • Emirates is Dubai's flagship carrier, known for its luxury service and global network.

   • Abu Dhabi International Airport (AUH)

     • Airline: Etihad Airways
       • Etihad Airways is the national airline of Abu Dhabi, focusing on premium services and innovation.

2. Saudi Arabia

   • King Khalid International Airport (RUH) in Riyadh

     • Airline: Saudia
       • Saudia is the national airline of Saudi Arabia, headquartered in Riyadh, with extensive domestic and international routes.

   • King Abdulaziz International Airport (JED) in Jeddah

     • Airline: Saudia
       • Saudia also serves Jeddah, an important hub for both religious and regular travelers.

3. Qatar

   • Hamad International Airport (DOH) in Doha
     • Airline: Qatar Airways
       • Qatar Airways is the national airline of Qatar, known worldwide for its high-quality service and modern fleet.

4. Bahrain

   • Bahrain International Airport (BAH)
     • Airline: Gulf Air
       • Gulf Air is the national airline of Bahrain, serving both regional and international destinations.

5. Oman

   • Muscat International Airport (MCT)
     • Airline: Oman Air
       • Oman Air is the national airline of Oman, known for its quality of service and regional connectivity.

6. Kuwait

   • Kuwait International Airport (KWI)
     • Airline: Kuwait Airways
       • Kuwait Airways is the national airline of Kuwait, offering both regional and international flights.

Strategic Value of Airlines

These airlines play a crucial role in the "Art at the Airport" project as they are the primary carriers bringing passengers to these airports. Their involvement allows them to connect their brands with a prestigious cultural project, enhancing their image and distinguishing them in a competitive market. Additionally, these airlines provide the infrastructure and network to promote the project globally, giving it the potential to reach a broad and diverse audience.

Estimated Costs of a VR Booth

The costs for setting up a "booth" at an airport, equipped with VR headsets and designed to provide an immersive experience, can vary depending on several factors such as size, design, technology used, and location. Below is an estimate of the costs, broken down into different components:

1. Design and Construction of the Booth

• Design and Architecture: €10,000 - €20,000
  • Professional designers and architects can create a custom design that fits the airport environment and the intended experience.
• Materials and Construction: €50,000 - €100,000
  • The booth should be durable and attractive, using high-quality materials that can withstand frequent use and aesthetically complement the airport environment.
• Interior Decoration and Furniture: €20,000 - €40,000
  • This includes seating, wall panels, flooring, and possibly displays or information desks.

2. Technological Installations

• VR Headsets: €500 - €1,000 each
  • For a booth with 10 VR headsets, the cost would range between €5,000 and €10,000.
• Computers/Servers for VR Display: €20,000 - €50,000
  • Powerful computers or servers are needed to ensure the VR experiences run smoothly.
• Audio-Visual Equipment (Speakers, Microphones, Screens): €10,000 - €20,000
  • This ensures an immersive experience with high-quality sound reproduction and possibly additional visual content.
• Network and Internet Connection: €5,000 - €10,000
  • Fast and reliable connections are essential for any updates or live interactions.

3. Software and Content

• Development of VR Content: €50,000 - €100,000
  • Creating custom VR experiences that match the art theme and specific location.
• Licenses for Software: €10,000 - €20,000
  • For the VR software used and any other supporting applications.

4. Maintenance and Operational Costs

• Maintenance of Equipment: €10,000 - €20,000 per year
  • Regular updates, maintenance, and replacement of equipment if necessary.
• Staffing Costs (VR Guides, Technical Support): €30,000 - €50,000 per year
  • Personnel to manage the booth, assist users, and resolve technical issues.

5. Overhead and Contingency Costs

• Overhead Costs: €10,000 - €20,000
  • Administrative costs, insurance, permits, etc.
• Contingency (10%): €20,000 - €40,000
  • A buffer for unexpected costs or issues that may arise during the project.

Total Cost Estimate per Booth

• Lowest Estimate: €215,000
• Highest Estimate: €420,000

These estimates depend on the complexity and quality of the booth and the technologies used. The costs can vary depending on the airport, the size of the booth, and the specific requirements of the project. However, this provides a basis for planning and budgeting for such immersive VR spaces at airports.

How €200,000 Compares to an Airline's Budget

A budget of €200,000 is relatively small compared to the total budgets of large airlines, especially when you consider the operational costs, fleet investments, infrastructure, and marketing that airlines typically have. Here are some perspectives to better understand this ratio:

1. Operational Costs of Airlines

• Large Airlines: Airlines such as Emirates, Qatar Airways, and Etihad Airways have operational budgets running into billions of euros per year. This includes costs for fuel, personnel, maintenance, airport fees, and more.
• Cost per Flight: A single long-haul flight can cost between €200,000 and €400,000 to operate, depending on factors such as route, fuel costs, and crew.
• Marketing Budgets: Large airlines spend millions of euros annually on marketing and brand promotion. For example, an airline's marketing budget can range from tens of millions to over €100 million per year, depending on the size of the airline and the markets they serve.

2. Investments in Innovation and Customer Experience

• Innovation Projects: Airlines often invest large amounts in innovations such as new aircraft models, premium passenger services, and digital transformations. A budget of €200,000 would be modest compared to investments in these areas, but it could still be strategically important for niche or specific projects like an immersive VR booth.
• Passenger Experience: Airlines invest millions in improving the passenger experience, including in-flight entertainment systems, lounges, and digital services. A €200,000 investment for a VR booth at an airport is a relatively small expense but can have a significant impact on the passenger experience, especially in premium classes.

3. Financial Impact and Justification

• Return on Investment (ROI): A VR booth, despite its relatively low cost, can yield significant benefits in terms of brand differentiation and customer satisfaction. It can contribute to the overall brand experience and passenger loyalty, which is important in a competitive market.
• Budget Allocation: In the context of an airline's total budget, €200,000 would typically be considered a relatively small but valuable investment for a specific innovation or customer-focused service.

Conclusion

In the larger context of an airline's budget, €200,000 is a small expenditure, especially when compared to the costs involved in daily operations or large investments in infrastructure and fleet. However, this sum can be strategically deployed for innovative projects like a VR booth, which can enhance the passenger experience and increase brand value. Such projects are often cost-effective relative to their potential impact on customer satisfaction and brand perception.

How Much You Can Charge the Customer

Determining how much you can charge customers for using a VR booth at an airport depends on several factors, including the target audience, the experience offered, and the value the customer perceives. Here are some considerations to determine what a reasonable price might be:

1. Customer Perception of Value

• Premium Experience: If the VR booth is positioned as an exclusive, high-quality experience, with access to unique content such as virtual tours of world-famous artworks or interactive art experiences, customers may be willing to pay a premium price.
• Time-Filling During Waiting: For travelers looking to kill time at the airport, especially in premium lounges, this can be an attractive and relaxing activity, increasing their willingness to pay.

2. Target Audience and Segmentation

• First-Class and Business-Class Passengers: These passengers are accustomed to paying for premium services and may be willing to pay a higher price for access to the VR experience. For them, a price of €20-€50 per session could be reasonable, depending on the duration and quality of the experience.
• Economy-Class Passengers: For economy-class passengers, a lower price, such as €5-€15 per session, might be more appropriate. This group is generally more price-sensitive, so the offer should be attractively priced.

3. Pricing Strategies

• Pay-per-Use: A simple and direct approach where customers pay for each session they use. This could range from €5 for a short 10-15 minute experience to €50 for a longer, more exclusive session.
• Subscription or Bundle Options: You could also consider offering bundles, such as a day pass for a fixed amount, or a subscription for frequent travelers who want to use the service regularly.
• Free for Premium Passengers: For airlines, offering free access to the VR booth for first-class and business-class passengers could be a way to differentiate their service and increase customer satisfaction.

4. Competition and Market Standard

• Comparison with Other Airport Services: It’s important to compare the price with other paid services at the airport, such as lounge access, massages, or other entertainment options. The VR booth should be competitively priced compared to these options.
• Value Proposition: If the VR experience is unique and cannot be found elsewhere, you might be able to charge a higher price due to the exclusive nature of the service.

5. Impact on Brand Image and Customer Loyalty

• Brand Experience: Offering a free or heavily discounted VR experience can increase customer satisfaction and brand loyalty, which can lead to higher revenues in the long term. This may be more important than direct revenue from the VR booth.
• Upselling and Cross-Selling: The VR booth can also serve as a means to promote other services, such as upgrades to business class, increasing the total value per customer.

Conclusion

You could charge customers approximately €5-€50 per session, depending on the target audience and the experience you offer. However, it is crucial to find the balance between price and value. A price that is too high may deter customers, while a price that is too low may diminish the perception of value. Also, consider the possibility of offering the VR booth for free to premium passengers to enhance their experience and potentially generate revenue through cross-selling or as part of a broader loyalty program.

Break-Even Analysis for Profitability

To create an overview of how many people need to use the VR booth to make it profitable, we need to make some assumptions about the costs and the revenue per user. Then, we can perform a break-even analysis.

1. Determining the Costs

Let’s assume a total investment of €300,000 for setting up the VR booth. This amount includes the costs for design, construction, technology, software, maintenance, and operational costs. For simplicity, let’s assume these costs need to be recovered over a period of one year.

2. Revenue per User

Let’s assume different scenarios for the price per user:

• Scenario 1: €5 per user
• Scenario 2: €15 per user
• Scenario 3: €25 per user
• Scenario 4: €50 per user

3. Break-Even Analysis

The break-even point is the number of users needed to cover the total costs. This is calculated by dividing the total costs by the revenue per user.

• Number of users at €5 per user:

$$\text{Number of users}=\frac{\text{€}300,000}{\text{€}5}=60,000$$

• Number of users at €15 per user:

$$\text{Number of users}=\frac{\text{€}300,000}{\text{€}15}=20,000$$

• Number of users at €25 per user:

$$\text{Number of users}=\frac{\text{€}300,000}{\text{€}25}=12,000$$

• Number of users at €50 per user:

$$\text{Number of users}=\frac{\text{€}300,000}{\text{€}50}=6,000$$

Overview

Price per User	Number of Users for Break-Even
€5	60,000
€15	20,000
€25	12,000
€50	6,000

Conclusion

• Low-Priced Scenarios (€5-€15 per user): You need a large number of users to break even, which means the VR booth needs to be very popular among travelers.
• Higher Prices (€25-€50 per user): You need fewer users to break even, but you need to ensure that the experience is premium enough to justify these higher prices.

The feasibility of each scenario depends on the location, passenger flow, and the value travelers place on the experience. By targeting the right audience and offering an attractive price, you can make the project profitable.

Revenue from Selling High-Quality VR Content

When calculating the costs for developing high-quality VR content for the booth and then determining the price at which you sell this content to airlines, you need to consider several factors. Here’s a step-by-step approach:

1. Determining the Development Costs of the Content

The costs for developing high-quality VR content can vary depending on the complexity, duration, and quality of the experience. Let’s assume you want to develop a high-quality, interactive VR experience that is unique and specifically tailored to the art experience:

• Concept Development and Scripting: €20,000 - €30,000
• 3D Modeling and Animation: €50,000 - €100,000
• Programming and Software Integration: €30,000 - €50,000
• Audio-Visual Production (Sound Effects, Music, Voice-overs): €10,000 - €20,000
• Testing and Optimization: €10,000 - €20,000
• Licenses and Rights for Using Certain Content (if applicable): €10,000 - €20,000
• Total Development Costs: €130,000 - €240,000 (depending on the quality and scope of the content)

2. Pricing for Selling to Airlines

When determining the selling price to airlines, consider the following factors:

• Profit Margin: You want to have a healthy profit margin above the development costs. A margin of 50%-100% is reasonable in the creative industry, depending on exclusivity and quality.
• Exclusivity: If the content is exclusive to an airline or a specific airport, you can charge a higher price.
• Bundles and Licensing Models: Consider different sales models, such as:
  • One-Time Purchase: A fixed price for unlimited use of the content.
  • Licensing Model: An annual licensing fee for the use of the content, generating recurring revenue.

3. Pricing Proposal

Let’s consider some scenarios:

• Scenario 1: One-time purchase with a 50% profit margin

  • Development Costs: €130,000 - €240,000
  • Profit Margin (50%): €65,000 - €120,000
  • Selling Price: €195,000 - €360,000

• Scenario 2: One-time purchase with a 100% profit margin

  • Development Costs: €130,000 - €240,000
  • Profit Margin (100%): €130,000 - €240,000
  • Selling Price: €260,000 - €480,000

• Scenario 3: Annual License (e.g., over 3 years)

  • Development Costs: €130,000 - €240,000
  • Expected Lifetime/License Period: 3 years
  • Annual License Fee (50% profit margin): €65,000 - €120,000 per year
  • Total License Agreement (3 years): €195,000 - €360,000

Conclusion

You can sell the VR content for an amount ranging from €195,000 to €480,000, depending on the desired profit margin and sales model (one-time purchase vs. license). This offers airlines a high-quality, custom experience for their passengers, while you make a healthy profit on your investment in content development.

If you opt for a licensing model, you can also build a long-term relationship with the airlines, generating recurring revenue. This can be attractive to airlines, as they do not have to invest a large sum at once, but instead pay annually for the use of the content.

Impact on the Financial Overview

To understand how the sale of VR content to airlines fits into your financial picture, we can create an overview that shows the costs, revenues, and profits. We will approach this by looking at the development costs of the content, the expected selling price, and the impact on profitability.

1. Development Costs of the VR Content

• Total Development Costs: €130,000 - €240,000

2. Revenues from the Sale of the VR Content

• Depending on the chosen sales model (one-time purchase or license), the potential revenues are:
• Scenario 1: One-time purchase with a 50% profit margin
  • Selling Price: €195,000 - €360,000
• Scenario 2: One-time purchase with a 100% profit margin
  • Selling Price: €260,000 - €480,000
• Scenario 3: Annual License (e.g., over 3 years)
  • Annual License Fee: €65,000 - €120,000 per year
  • Total License Agreement (3 years): €195,000 - €360,000

3. Profit Calculation per Scenario

Let’s calculate the profit for each scenario by subtracting the development costs from the selling price:

• Scenario 1: One-time purchase with a 50% profit margin

  • Profit: €195,000 - €130,000 = €65,000 (minimum profit)
  • Profit: €360,000 - €240,000 = €120,000 (maximum profit)

• Scenario 2: One-time purchase with a 100% profit margin

  • Profit: €260,000 - €130,000 = €130,000 (minimum profit)
  • Profit: €480,000 - €240,000 = €240,000 (maximum profit)

• Scenario 3: Annual License (e.g., over 3 years)

  • Annual Profit: €65,000 - €43,333 = €21,667 (minimum annual profit)
  • Annual Profit: €120,000 - €80,000 = €40,000 (maximum annual profit)
  • Total Profit over 3 years: €65,000 - €130,000 (minimum total profit)
  • Total Profit over 3 years: €120,000 - €240,000 (maximum total profit)

4. Impact on the Financial Overview

Let’s place these figures in the overall financial picture, including the original costs for the booth and other initial investments:

• Total Initial Costs for the Booth and Content

  • Booth Costs: €300,000
  • Content Development Costs: €130,000 - €240,000
  • Total Initial Investment: €430,000 - €540,000

• Revenues and Profits per Scenario

  • Scenario 1: One-time purchase with a 50% profit margin

    • Revenues: €195,000 - €360,000
    • Total Profit: -€235,000 to -€180,000 (the investment is not fully recovered with just one sale)

  • Scenario 2: One-time purchase with a 100% profit margin

    • Revenues: €260,000 - €480,000
    • Total Profit: -€170,000 to -€60,000 (the investment is approaching break-even, depending on the number of sales)

  • Scenario 3: Annual License (e.g., over 3 years)

    • Revenues: €195,000 - €360,000 (over 3 years)
    • Total Profit: -€235,000 to -€180,000 (similar to Scenario 1 in the short term)

Conclusion

• Break-Even and Profitability: To become profitable, it is essential to secure multiple sales or licensing agreements. In scenarios 1 and 2, you need to attract multiple airlines to recover the initial investment of €430,000 - €540,000 and make a profit.
• Multiple Sales/Licenses: If you manage to sell the content to multiple airlines (e.g., to 3-5 airlines), you can achieve significant profits even with a modest initial investment.
• License Over Multiple Years: Scenario 3 with a licensing model offers a steady stream of income, but to quickly recover the total initial costs, multiple license agreements need to be secured, or the license price needs to be increased.

By combining one-time purchases and licensing agreements, you can maximize the profitability of the project and spread the risks. The financial success depends on the number of airlines willing to invest in this high-quality VR content.

Sponsorship from Fashion Brands

Dressing avatars with fashion brands in a VR environment can be a lucrative collaboration between your project and major fashion brands. This offers brands a unique opportunity to present their products in an innovative way to an international audience. Here are 12 fashion houses that could fit this project, along with estimates of how much they could pay.

12 Fashion Houses that Could Be Suitable

• Gucci
• Louis Vuitton
• Prada
• Balenciaga
• Dior
• Chanel
• Hermès
• Versace
• Burberry
• Fendi
• Yves Saint Laurent (YSL)
• Dolce & Gabbana

What Could These Brands Pay?

The fee that brands are willing to pay for dressing avatars depends on various factors, such as the visibility of their products, the exclusivity of the collaboration, and the expected impact on their brand. Here are some possible scenarios:

1. One-Time Sponsorship Contribution

• Top Brands like Gucci, Louis Vuitton, Chanel, Dior, Hermès:
  • Expected Contribution: €100,000 - €500,000 per brand
  • Reason: These brands are willing to invest more for exclusivity and high visibility in an innovative environment.
• Other Brands like Prada, Balenciaga, Versace, Burberry:
  • Expected Contribution: €50,000 - €200,000 per brand
  • Reason: These brands may consider a lower contribution depending on the level of exclusivity and the target audience they want to reach.

2. Per Visitor or User

• Another model could be to charge brands based on the number of users visiting the VR booth and seeing the fashion outfits on the avatars:
  • Top Brands:
    • Fee per Visitor: €1 - €2 per visitor
    • For Example: If 100,000 people visit the VR booth, a brand could pay between €100,000 and €200,000.
  • Other Brands:
    • Fee per Visitor: €0.50 - €1 per visitor
    • For Example: At 100,000 visitors, a brand could pay between €50,000 and €100,000.

Total Revenue from Brands

• Let’s assume all 12 brands participate and they pay according to the one-time sponsorship contribution:

  • Average Contribution per Brand: €150,000 (e.g., average of top brands and other brands)
  • Total Revenue: 12 brands x €150,000 = €1,800,000

• If you opt for a payment model per visitor:

  • Average Contribution per Visitor: €1 per visitor
  • At 100,000 visitors: €1 x 100,000 x 12 brands = €1,200,000

Conclusion

• One-Time Sponsorship Contribution: Could range from €1.2 million to €6 million, depending on brand involvement and exclusivity.
• Payment per Visitor: Could be significant, especially with a large number of visitors, with potential revenues around €1.2 million at 100,000 visitors.

This model offers room for flexible negotiation with brands, with both overall visibility and visitor numbers being key factors for the final revenues. Depending on your target audience and visitor numbers, you can decide which model is most lucrative and practical for your project.

Calculating the Number of Visitors

To calculate the number of visitors per airport, how many of them travel in first class and economy, and then the percentage needed to achieve the previously mentioned revenues, we proceed as follows:

Steps:

• Gather data per airport:
  • Total annual passenger numbers for each airport.
  • Distribution of passengers across different classes (first class, business class, economy).
• Calculation of the number of passengers in each class per airport:
  • Use ratios to determine how many passengers travel in first class and economy.
• Calculation of the percentage of passengers that need to use the VR booth:
  • Compare the required number of visitors with the total number of passengers to calculate the required percentage.

Airport Data:

• Let’s assume we use average data for large international airports in the GCC region.

Airport	Total Passengers (Millions)	Percentage First Class	Percentage Economy
Dubai (DXB)	86	5%	80%
Abu Dhabi (AUH)	24	4%	85%
Doha (DOH)	38	5%	80%
Riyadh (RUH)	28	3%	85%
Jeddah (JED)	35	3%	85%
Muscat (MCT)	17	3%	85%
Bahrain (BAH)	10	4%	85%
Kuwait (KWI)	15	3%	85%

Calculations:

• Calculation of the number of passengers in each class per airport.
• Comparison with the required number of visitors for the VR booth.
• Let’s calculate these.

Results of the Calculations:

• Overview of Visitors per Airport

Airport	Total Passengers (Millions)	First Class Passengers (Millions)	Economy Passengers (Millions)	Required Visitors Percentage (%)
Dubai (DXB)	86	4.30	68.80	0.07%
Abu Dhabi (AUH)	24	0.96	20.40	0.25%
Doha (DOH)	38	1.90	30.40	0.16%
Riyadh (RUH)	28	0.84	23.80	0.21%
Jeddah (JED)	35	1.05	29.75	0.17%
Muscat (MCT)	17	0.51	14.45	0.35%
Bahrain (BAH)	10	0.40	8.50	0.60%
Kuwait (KWI)	15	0.45	12.75	0.40%

Interpretation of the Results:

• Total Passengers: This is the estimated number of passengers that travel through the airport each year.
• First Class Passengers: This is the number of passengers traveling in first class. This group may be more interested in exclusive VR experiences.
• Economy Passengers: This is the number of passengers traveling in the economy. They represent the majority of passengers and can also potentially use the VR booth.
• Required Visitors Percentage: This is the percentage of total passengers needed to reach 60,000 visitors for the VR booth. For most airports, this percentage is very small, indicating that the project is feasible even with a small number of interested passengers.

These figures show that only a small percentage of passengers at each airport need to use the VR booth to achieve the set goals. This is favorable as it means the VR booth does not rely on large numbers of users to be successful.

Calculating the Number of VR Headsets Required

To calculate how many VR headsets you need per airport, we need to consider the expected number of visitors per day and the average time each user spends with the VR headset. This provides an indication of the number of headsets needed to meet demand without causing long wait times.

Steps:

• Expected daily visitors per airport:
  • We assume the VR booth is operational throughout the year.
  • Divide the total required visitors by the number of days per year to determine the daily number.
• Average usage time per visitor:
  • Set an average usage time for each session (e.g., 15-30 minutes).
• Opening hours of the VR booth per day:
  • Set the number of hours the VR booth is open daily (e.g., 12-16 hours per day).
• Calculate the number of required VR headsets:
  • Determine how many sessions each VR headset can support during the opening hours.
  • Divide the number of daily visitors by the number of sessions per headset to calculate the required number of headsets.

Calculations:

• Let’s execute this with some assumptions:
  • Average session duration per user: 20 minutes (0.33 hours)
  • Opening hours of the VR booth: 12 hours per day
  • Number of required visitors per year: 60,000

1. Calculation of daily visitors per airport:

• Daily Visitors: $\frac{60,000\text{ visitors}}{365\text{ days}}\approx 164\text{ visitors per day}$

2. Number of sessions per VR headset per day:

• Number of sessions per VR headset: $\frac{12\text{ hours per day}}{0.33\text{ hours per session}}\approx 36\text{ sessions per day per headset}$

3. Calculation of the number of required VR headsets per airport:

• Required headsets: $\frac{164\text{ visitors per day}}{36\text{ sessions per headset}}\approx 5\text{ headsets}$

Conclusion

For each airport, you would need approximately 5 VR headsets to meet the expected demand, based on the assumptions of 164 visitors per day and an average session duration of 20 minutes. This number can be adjusted depending on specific airport conditions, such as higher visitor numbers or longer session durations.

Potential VR Headset Makers for Sponsorship

Sponsorship of VR headsets for a project like the "Art at the Airport" VR booth can be attractive to various VR headset makers, especially due to the visibility and innovative nature of the project. Here are some VR headset makers who might be interested in sponsorship:

1. Meta (formerly Oculus)

• Product: Meta Quest 3, Quest Pro
• Why: Meta has strong ambitions to be a leader in the metaverse and VR space. Sponsoring their headsets for a project with such international visibility could further strengthen their position as a market leader and showcase their products to a broad audience.

2. HTC Vive

• Product: HTC Vive Pro 2, HTC Vive Cosmos
• Why: HTC is a pioneer in VR technology and focuses on high-quality, professional VR solutions. Sponsoring this project could help them strengthen their reputation in the B2B and premium consumer segments.

3. Sony (PlayStation VR)

• Product: PlayStation VR2
• Why: Sony is a powerhouse in the gaming industry and has recently expanded its VR offerings. By participating in this project, Sony could position the PlayStation VR as a versatile VR solution, not just for gaming but also for interactive experiences.

4. Valve

• Product: Valve Index
• Why: Valve has a strong reputation within the gaming community, and with the Valve Index, they focus on high-quality, immersive VR experiences. Sponsorship could help Valve extend their influence beyond the traditional gaming market.

5. Samsung

• Product: Samsung Odyssey
• Why: Samsung has a wide range of electronic products, and their VR headsets, like the Odyssey series, target both consumer and professional markets. Participation in this project could help them showcase their technology in an innovative, non-gaming setting.

6. Pico Interactive

• Product: Pico 4
• Why: Pico strongly focuses on the business and educational VR market. This project offers an excellent opportunity for Pico to demonstrate their VR solutions to a diverse international audience, which could lead to broader business applications.

Reasons for Sponsorship:

• Visibility: Airports have enormous daily passenger traffic, including many international travelers, providing excellent brand visibility.
• Innovation: The project offers a unique way for VR headset makers to demonstrate their technology in an innovative and cultural setting, which can position their brand as a leader in technological innovation.
• Target Audience: The target audience includes premium travelers, business customers, and technology enthusiasts, aligning with the demographic group that VR headset makers want to reach.

Conclusion

Meta, HTC Vive, Sony, Valve, Samsung, and Pico Interactive are all strong candidates for sponsoring VR headsets for this project. They might be interested due to the high visibility, innovative nature, and opportunity to showcase their products in a new, international setting. Reaching out to these companies with a well-developed proposal could lead to successful sponsorship and collaboration.

Sponsorship Pricing and VR Headsets

When determining how much money you can ask per brand for sponsorship and the number of VR headsets each brand could deliver, several factors need to be considered. Let’s approach this by estimating the sponsorship contribution per brand and the number of VR headsets that could realistically be delivered.

1. Calculation of the Number of VR Headsets per Airport

• As calculated earlier, each airport would need about 5 VR headsets to meet the expected demand.
• Total Number of Airports: 8 (as previously mentioned: Dubai, Abu Dhabi, Doha, Riyadh, Jeddah, Muscat, Bahrain, Kuwait)
• Total Number of VR Headsets Needed for the Project: 5 headsets per airport * 8 airports = 40 VR headsets in total

2. Distribution of VR Headsets Among Brands

• Let’s assume 2 to 4 brands are willing to deliver the headsets. This gives us a distribution of:
• 2 Brands: Each brand delivers 20 headsets.
• 4 Brands: Each brand delivers 10 headsets.

3. Sponsorship Contribution per Brand

• The sponsorship contribution can vary depending on the brand and the value of the visibility they receive. Let’s estimate the sponsorship contribution for the delivery of VR headsets as follows:
• Cost of a VR Headset: A high-quality VR headset such as the Meta Quest 3 or HTC Vive Pro 2 can cost between €400 and €1,200.
• Cost for 10-20 headsets: This ranges from €4,000 to €24,000 per brand, depending on the number and quality of the headsets.

4. Additional Sponsorship Costs for Visibility

• In addition to providing headsets, brands may want to pay extra for branding and visibility in the VR booth:
• High-End Brands (like Meta, HTC, Sony, Valve): These brands could consider a sponsorship contribution of €50,000 to €200,000 per brand, depending on the exclusivity and level of branding they receive.

5. Total Potential Revenue from Sponsorship

• For 2 Brands: Total between €108,000 and €448,000.
• For 4 Brands: Total between €216,000 and €896,000.

Conclusion

• You can ask for a sponsorship contribution per brand ranging from €54,000 to €224,000, including the delivery of 10-20 VR headsets and additional branding. This amount depends on the exclusivity, the expected visibility at the airports, and the quality of the VR headsets. If you can attract 4 brands, this project could potentially generate between €216,000 and €896,000 in sponsorship revenue.

Results of the Calculations

• Revenue per gallery from the 15% fee on sales: €225,000
• Total revenue per gallery (including participation fee):
  • Minimum (with €5,000 participation fee): €230,000 per gallery
  • Maximum (with €10,000 participation fee): €235,000 per gallery

Total Revenue for a Number of Galleries

Let’s calculate the total revenue for 5, 10, 15, and 20 galleries:

• For 5 Galleries:
  • Revenue with minimum participation fee: €1,150,000
  • Revenue with maximum participation fee: €1,175,000
• For 10 Galleries:
  • Revenue with minimum participation fee: €2,300,000
  • Revenue with maximum participation fee: €2,350,000
• For 15 Galleries:
  • Revenue with minimum participation fee: €3,450,000
  • Revenue with maximum participation fee: €3,525,000
• For 20 Galleries:
  • Revenue with minimum participation fee: €4,600,000
  • Revenue with maximum participation fee: €4,700,000

Conclusion

• Fixed Participation Fee per Gallery: €5,000 - €10,000.
• Revenue per Gallery from the Fee: €225,000 (15% fee on sold works).
• Total Revenue per Gallery: Between €230,000 and €235,000.
• Number of Galleries Needed: With 10-20 galleries, you can generate substantial revenue between €2.3 million and €4.7 million.