Airport Duty Free, Retailing & Non-Aero Activities

As the airport sector has become increasingly competitive, driven by pricing demands by low cost airlines, consolidation of legacy airlines and the growing size and scope of alliances, and in many countries the replication of airport facilities in urban areas, so has the need to develop alternative revenue streams. In fact it is no longer entirely accurate to describe non-aeronautical revenue generation as ‘alternative’. Airports Council International for example suggests that airport managements should set 50% of all revenues as the minimum level of revenue generation from such activities.

Neither is it any longer a case (except in the most basic low cost airports) of offering a snack bar and a gift shop. Airport retailing has grown to embrace a myriad of sub-sectors including food and beverage (usually acronymed as F&B); children’s goods; confectionery/fine food; consumer technology goods; cosmetics; destination merchandise; fashion, leather goods and accessories; fragrances; crystal and china speciality gifts; hair styling; jewelry; news and books; wines and spirits; sunglasses/eye care; tobacco products and lighters; watches; well-being; and writing instruments.

In fact it is often difficult to tell an airport terminal (especially airside) apart from a city shopping mall and hardly surprising that some airport operators are prior owners of such retail facilities.

But it is not only by offering shopping that an airport operator can increase revenues. Many innovative measures have been introduced that include hotels and convention facilities; property development; advertising; consumer services; car parking and rental services; foreign exchange; lounges; gambling; loyalty cards; and naming rights.

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