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Business performance of airports: Non-aviation revenues and their determinants

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  • Fasone, Vincenzo
  • Kofler, Lukas
  • Scuderi, Raffaele

Abstract

Management of non-core commercial activities has become a key issue amongst the leverages for improving modern airport industry. Today airports have increased dramatically their dependence on non-aeronautical revenues, which on average account for half of all revenues with this share being highly heterogeneous across regions and airports. Using a dataset of German airports, this paper discusses the improvement of commercial revenues by exploring its determinants. Previous contributions assessed the impact of a selected set of variables non-aviation revenues. Such approach was mainly the effect of multicollinearity, as the majority of relevant variables are strongly correlated to the size of the structures. We address this issue by using ridge regression and partial least squares. Results suggest the potential conflict of non-aviation revenues per passenger and per square meter with the need to expand the number of passengers.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jaitra:v:53:y:2016:i:c:p:35-45
    DOI: 10.1016/j.jairtraman.2015.12.012
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    References listed on IDEAS

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    4. 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).
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    8. 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).
    9. Gabriela ?igu & Antonio Garcia Sanchez & Cristina Stoenescu & Camelia Gheorghe & Gabriel Cristian Sabou, 2018. "The Destination Experience Through Stopover Tourism – Bucharest Case Study," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(S12), pages 967-967, November.
    10. Yokomi, Muneki & Wheat, Phill & Mizutani, Jun, 2017. "The impact of low cost carriers on non-aeronautical revenues in airport: An empirical study of UK airports," Journal of Air Transport Management, Elsevier, vol. 64(PA), pages 77-85.
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