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Space allocation for commercial activities at international passenger terminals

Author

Listed:
  • Hsu, Chaug-Ing
  • Chao, Ching-Cheng

Abstract

This study examines the relationships among commercial revenue, passenger service level and space allocation in international passenger terminals. Using mathematical programming, this study constructs a model for maximizing concession revenues while maintaining service level, to optimize the space allocation for various types of stores. This study then uses CKS International Airport as an example to demonstrate the applicability of the models. The results show that total commercial revenues can be maximized by locating the stores with more concession revenue in the more accessible positions. Moreover, the optimal space allocation for commercial activities and public facilities changes with passenger volumes and/or service levels.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:transe:v:41:y:2005:i:1:p:29-51
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    Citations

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    Cited by:

    1. Creed, Bernard & Ning Shen, Kathy & Ashill, Nick & Wu, Tianshi, 2021. "Retail shopping at airports: Making travellers buy again," Journal of Business Research, Elsevier, vol. 137(C), pages 293-307.
    2. 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.
    3. Chen, Jieh-Haur & Wei, Hsi-Hsien & Chen, Chih-Lin & Wei, Hsin-Yi & Chen, Yi-Ping & Ye, Zhongnan, 2020. "A practical approach to determining critical macroeconomic factors in air-traffic volume based on K-means clustering and decision-tree classification," Journal of Air Transport Management, Elsevier, vol. 82(C).
    4. 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).
    5. Sakkarin Nonthapot, 2014. "Analysis of Passenger Transportation Demand: Case Study of the Customs House, the Thai-Laos Friendship Bridge, Nong Khai Province," Journal of Social and Development Sciences, AMH International, vol. 5(1), pages 1-6.
    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. 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. 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.
    9. 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).
    10. 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).
    11. 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).
    12. Xu, Xin-yue & Liu, Jun & Li, Hai-ying & Jiang, Man, 2016. "Capacity-oriented passenger flow control under uncertain demand: Algorithm development and real-world case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 130-148.
    13. 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).
    14. Silva, Lenice Mirian da & Borille, Giovanna Miceli Ronzani & Bandeira, Michelle Carvalho Galvão da Silva Pinto, 2022. "The effect of arrival time of travelers at the airport on consumption in commercial establishments," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).

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