IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v12y2006i6p277-287.html
   My bibliography  Save this article

The appropriate scale of US airport retail activities

Author

Listed:
  • Appold, Stephen J.
  • Kasarda, John D.

Abstract

Terminal-based retail has been sufficiently successful that many airport operators are considering enlarging their facilities in order to increase revenues. On the basis of data on the retail sales and rental revenues for 75 of the US's most important passenger airports, we demonstrate the significant impact of passenger demography on the volume and nature of airport retail sales. A method is outlined for combining information on the demography of passenger flows with construction costs in order to evaluate appropriate capital investments for terminal retail expansions.

Suggested Citation

  • Appold, Stephen J. & Kasarda, John D., 2006. "The appropriate scale of US airport retail activities," Journal of Air Transport Management, Elsevier, vol. 12(6), pages 277-287.
    • Handle: RePEc:eee:jaitra:v:12:y:2006:i:6:p:277-287
    DOI: 10.1016/j.jairtraman.2006.04.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699706000378
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2006.04.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. McHardy, Jolian & Trotter, Stephen, 2006. "Competition and deregulation: Do air passengers get the benefits?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(1), pages 74-93, January.
    2. Hsu, Chaug-Ing & Chao, Ching-Cheng, 2005. "Space allocation for commercial activities at international passenger terminals," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(1), pages 29-51, January.
    3. Zhang, Anming & Zhang, Yimin, 1997. "Concession revenue and optimal airport pricing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(4), pages 287-296, December.
    4. Torres, E. & Domínguez, J.S. & Valdés, L. & Aza, R., 2005. "Passenger waiting time in an airport and expenditure carried out in the commercial area," Journal of Air Transport Management, Elsevier, vol. 11(6), pages 363-367.
    5. Roger R. Betancourt, 2004. "The Economics of Retailing and Distribution," Books, Edward Elgar Publishing, number 3511.
    6. Dresner, Martin, 2006. "Leisure versus business passengers: Similarities, differences, and implications," Journal of Air Transport Management, Elsevier, vol. 12(1), pages 28-32.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Suyang & Pawlak, Jacek & Sivakumar, Aruna, 2024. "Implications of air travel shopping for non-aeronautical revenue streams: A cross-national empirical analysis," Journal of Air Transport Management, Elsevier, vol. 119(C).
    2. Fuerst, Franz & Gross, Sven, 2018. "The commercial performance of global airports," Transport Policy, Elsevier, vol. 61(C), pages 123-131.
    3. Choi, Jong Hae & Park, Yonghwa, 2022. "Exploring passenger and flight characteristics' impacts on airport retail income: Evidence from Incheon International Airport," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    4. Tavalaei, M. Mahdi & Santalo, Juan, 2019. "Pure versus hybrid competitive strategies in the airport industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 444-455.
    5. Castillo-Manzano, José I. & López-Valpuesta, Lourdes & Sánchez-Braza, Antonio, 2018. "When the mall is in the airport: Measuring the effect of the airport mall on passengers’ consumer behavior," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 32-38.
    6. Wu, Cheng-Lung & Ma, Ngai Ki, 2022. "The impact of customised mobile marketing on passenger shopping behaviour in the airport terminal," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    7. Fuerst, Franz & Gross, Sven & Klose, Ulf, 2011. "The sky is the limit? The determinants and constraints of European airports commercial revenues," Journal of Air Transport Management, Elsevier, vol. 17(5), pages 278-283.
    8. Fasone, Vincenzo & Kofler, Lukas & Scuderi, Raffaele, 2016. "Business performance of airports: Non-aviation revenues and their determinants," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 35-45.
    9. Castillo-Manzano, José I., 2010. "Determinants of commercial revenues at airports: Lessons learned from Spanish regional airports," Tourism Management, Elsevier, vol. 31(6), pages 788-796.
    10. Wu, You & Morlotti, Chiara & Mantin, Benny, 2024. "Shopping or dining? On passenger dwell time and non-aeronautical revenues," Journal of Air Transport Management, Elsevier, vol. 118(C).
    11. Del Chiappa, Giacomo & Martin, Juan Carlos & Roman, Concepcion, 2016. "Service quality of airports' food and beverage retailers. A fuzzy approach," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 105-113.
    12. Thomas, Nivea & Jha, Kumar Neeraj, 2024. "Econometric evidence on the profits and revenues of Indian regional airports," Journal of Air Transport Management, Elsevier, vol. 115(C).
    13. Chung, Yi-Shih & Ku, Ya-Han, 2023. "Effect of time stress and store visibility on the dynamics of passenger activity choices at airport terminals based on indoor trajectory data," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    14. Jiang, Yonglei & Huang, Ailing & Gao, Shengguo & Yu, Shunan, 2024. "Relationship between the terminal built environment and airport retail revenue," Journal of Air Transport Management, Elsevier, vol. 116(C).
    15. Mahpour, Alireza & Asadi, Majid & Baghestani, Amirhossein, 2024. "Are supply and demand the main key drivers of airport parking prices? The quantitative study," Journal of Air Transport Management, Elsevier, vol. 114(C).
    16. Tavalaei, M. Mahdi, 2020. "Waiting time in two-sided platforms: The case of the airport industry," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    17. Silva, João & Kalakou, Sofia & Andrade, Antonio R., 2023. "Maximizing non-aeronautical revenues in airport terminals using gate assignment and passenger behaviour modelling," Journal of Air Transport Management, Elsevier, vol. 112(C).
    18. lo Storto, Corrado, 2018. "Ownership structure and the technical, cost, and revenue efficiency of Italian airports," Utilities Policy, Elsevier, vol. 50(C), pages 175-193.
    19. Wu, Hanjun & Tsui, Kan Wai Hong, 2020. "Does a reward program affect customers’ behavioural intention of visiting the airport? A case study of Singapore Changi Airport," Journal of Air Transport Management, Elsevier, vol. 82(C).
    20. Lu, Jin-Long, 2014. "Investigating factors that influence passengers' shopping intentions at airports – Evidence from Taiwan," Journal of Air Transport Management, Elsevier, vol. 35(C), pages 72-77.
    21. Abbruzzo, Antonino & Fasone, Vincenzo & Scuderi, Raffaele, 2016. "Operational and financial performance of Italian airport companies: A dynamic graphical model," Transport Policy, Elsevier, vol. 52(C), pages 231-237.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Castillo-Manzano, José I., 2010. "Determinants of commercial revenues at airports: Lessons learned from Spanish regional airports," Tourism Management, Elsevier, vol. 31(6), pages 788-796.
    2. Choi, Jong Hae, 2021. "Changes in airport operating procedures and implications for airport strategies post-COVID-19," Journal of Air Transport Management, Elsevier, vol. 94(C).
    3. Fuerst, Franz & Gross, Sven & Klose, Ulf, 2011. "The sky is the limit? The determinants and constraints of European airports commercial revenues," Journal of Air Transport Management, Elsevier, vol. 17(5), pages 278-283.
    4. Jiang, Changmin & Zhang, Anming, 2015. "Airport congestion pricing and terminal investment: Effects of terminal congestion, passenger types, and concessionsAuthor-Name: Wan, Yulai," Transportation Research Part B: Methodological, Elsevier, vol. 82(C), pages 91-113.
    5. Fasone, Vincenzo & Kofler, Lukas & Scuderi, Raffaele, 2016. "Business performance of airports: Non-aviation revenues and their determinants," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 35-45.
    6. Choi, Jong Hae & Park, Yonghwa & Wang, Kun & Xia, Wenyi, 2020. "Whether low-cost-carrier passengers spend more on duty-free goods at the airport? Evidence from Incheon International Airport," Journal of Air Transport Management, Elsevier, vol. 86(C).
    7. Choi, Jong Hae & Park, Yonghwa, 2022. "Exploring passenger and flight characteristics' impacts on airport retail income: Evidence from Incheon International Airport," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    8. Thomas, Nivea & Jha, Kumar Neeraj, 2024. "Econometric evidence on the profits and revenues of Indian regional airports," Journal of Air Transport Management, Elsevier, vol. 115(C).
    9. Chung, Yi-Shih & Ku, Ya-Han, 2023. "Effect of time stress and store visibility on the dynamics of passenger activity choices at airport terminals based on indoor trajectory data," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    10. Lin, Yi-Hsin & Chen, Ching-Fu, 2013. "Passengers' shopping motivations and commercial activities at airports – The moderating effects of time pressure and impulse buying tendency," Tourism Management, Elsevier, vol. 36(C), pages 426-434.
    11. Wu, Hanjun & Tsui, Kan Wai Hong, 2020. "Does a reward program affect customers’ behavioural intention of visiting the airport? A case study of Singapore Changi Airport," Journal of Air Transport Management, Elsevier, vol. 82(C).
    12. Etienne Billette de Villemeur & Kevin Guittet, 2004. "Optimal structure of air transport services when environnemental costs are taken into account," Post-Print hal-01022242, HAL.
    13. Chen, Yanhong & Liu, Luning & Zheng, Dequan & Li, Bin, 2023. "Estimating travellers’ value when purchasing auxiliary services in the airline industry based on the RFM model," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    14. Emek Basker, 2012. "Raising the Barcode Scanner: Technology and Productivity in the Retail Sector," NBER Chapters,in: Standards, Patents and Innovations National Bureau of Economic Research, Inc.
    15. Hangjun Yang & Anming Zhang, 2011. "Price-cap regulation of congested airports," Journal of Regulatory Economics, Springer, vol. 39(3), pages 293-312, June.
    16. Charles Courtemanche & Art Carden, 2014. "Competing with Costco and Sam's Club: Warehouse Club Entry and Grocery Prices," Southern Economic Journal, John Wiley & Sons, vol. 80(3), pages 565-585, January.
    17. Emek Basker, 2012. "Raising the Barcode Scanner: Technology and Productivity in the Retail Sector," American Economic Journal: Applied Economics, American Economic Association, vol. 4(3), pages 1-27, July.
    18. Basso, Leonardo J. & Zhang, Anming, 2007. "Congestible facility rivalry in vertical structures," Journal of Urban Economics, Elsevier, vol. 61(2), pages 218-237, March.
    19. Gong, Zhenwei & Zhang, Fangni & Liu, Wei & Graham, Daniel J., 2023. "On the effects of airport capacity expansion under responsive airlines and elastic passenger demand," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 48-76.
    20. Nerja, Adrián, 2023. "Can parallel airline alliances be welfare improving? The case of airline–airport vertical agreement," Transportation Research Part A: Policy and Practice, Elsevier, vol. 167(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:12:y:2006:i:6:p:277-287. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.