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Effects of passenger characteristics and terminal layout on airport retail revenue: an agent-based simulation approach

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  • Cheng-Lung Wu
  • Yimeng Chen

Abstract

This paper examines the effect of passenger characteristics and terminal layout on airport retail revenue using an agent-based simulation approach. Simulation results show that passenger mix (that is, the mix of shopper types according to a typology of airport shoppers) has a profound effect on airport retail revenue; the larger the number of ‘shopping lovers’ there are among passengers, the higher the airport retail revenue. Results also reveal that group travel can lead to negative effects on retail in certain terminal layouts, and that the amount of free dwell time that a passenger has can affect spending due to less retail engagement. This paper shows a combined effect of passenger characteristics and terminal layout on airport retail revenue, and discusses the implications of these results for future airport terminal design that aims to maximise retail potential.

Suggested Citation

  • Cheng-Lung Wu & Yimeng Chen, 2019. "Effects of passenger characteristics and terminal layout on airport retail revenue: an agent-based simulation approach," Transportation Planning and Technology, Taylor & Francis Journals, vol. 42(2), pages 167-186, February.
    • Handle: RePEc:taf:transp:v:42:y:2019:i:2:p:167-186
    DOI: 10.1080/03081060.2019.1565163
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    Citations

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    Cited by:

    1. 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).
    2. Thampan, Aromal & Sinha, Kapil & Gurjar, B.R. & Rajasekar, E., 2020. "Functional efficiency in airport terminals: A review on Overall and Stratified Service Quality," Journal of Air Transport Management, Elsevier, vol. 87(C).
    3. 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).
    4. 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.
    5. 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).
    6. 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).
    7. 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).
    8. 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).
    9. Afroditi Anagnostopoulou & Dimitrios Tolikas & Evangelos Spyrou & Attila Akac & Vassilios Kappatos, 2024. "The Analysis and AI Simulation of Passenger Flows in an Airport Terminal: A Decision-Making Tool," Sustainability, MDPI, vol. 16(3), pages 1-13, February.

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