Airport Retail: Design, Passenger Flow & Duty-Free Stores - Essay Sample

Introduction

Airport retailing requires several features for improved operations. Airports largely rely on commercial revenue to gain profits. The inception of the duty-free retail industry date from the establishment of alternative sources of income in the Airport. Passenger flow and design of the route were the significant aspects of airport design. However, in recent years, most airports are focused on convenient establishment and location of retail stores for improved accessibility in airports. The rapid growth of Airport retailing is fueled by the rise in the number of passengers travelling. Additionally, this type of businesses is boosted by the commuters and traveller's appetite for shopping on-the-go. Also, the increase of check-in times at the Airport offered retail companies the scope to significantly sell out their products. Airport retailing gives room for the businesses to showcase their services and increase their customer base

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The establishment of duty-free retails presented an important means by which the airports seek to lure passengers into shopping. Retails also recognize that the rise of tax-free shopping experience is not the only motivator for customer attraction, but they have adopted the use of digital marketing (Puls 2015). Larger airports such as the Los Angeles airport can leverage the revenues to produce the highest level of income per passenger. Thus there is a rise in concern in location spaces occupied by these retail stores in the Airport (Puls 2015). In North America, travellers await an average of one and a half hours between security and boarding. Therefore, most of the airports are seek to establish concession spaces that serve customers during security checks (Kaplan 2018). Asia-pacific region has the largest airport retail markets, with strategically located stores between security checkpoints and boarding (Kaplan 2018). These stores offer an out of world shopping experience generating large incomes through fashion and accessories stores.

Airports retail and shopping business vary depending on the changes in the target population, which change depending on the terminal, flight timetables and store location (Ewen 2019). Airport shopping is an ideal shopping destination since the stores offer a captivating market with buyers with a vacation mindset. The golden hour of security check is the only available hour to be utilized by the retailers to convince the travellers into spending their money (Ewen 2019). Shopping at the Airport has changed from kitschy food joints to a bursting shopping experience with expensive dining, spa services and other luxurious retails. These retail offer places with full-blown adventures to kill time. The future of duty-free retail and shopping stores is in the extra work that airports have to put in working with their retail partners and in maintaining the contribution made by the passengers.

References

Ewen, L. (2019, March 4). Airport retail has a long runway ? for the right brands. Retrieved from https://www.retaildive.com/news/airport-retail-has-a-long-runway-for-the-right-brands/549298/

Kaplan, D. A. (2018, August 20). With more security and little storage, airport retail challenges the supply chain. Retrieved from https://www.supplychaindive.com/news/with-more-security-and-little-storage-airport-retail-challenges-the-supply/530392/

Puls, R. W. (2015). European Airport Concessions: Retail Strategies to Improve Commercial Revenue from Leisure Travelers.