Airport Retail - An Attractive Investment

As global affluence rises and an increasing number of us travel on a regular basis, whether for business or pleasure, airports are exploiting this growth in any way they can. It’s an astute way for airports to increase revenue that is entirely separate from its aeronautical origins. A previously untapped market, airports are now seen as a shopping destination in their own right. It can almost be seen as a luxurious experience, an extension of the trip, with hosts of expensive brands in one succinct destination. There is the added allure that the traveller is aware they must buy the product now, because once they cross the boarding lines there is no going back.

Most of us know what it’s like to shop in an airport. The liquid items you forgot about in your hand-luggage are confiscated and you are left bereft, thirsty and without deodorant for a long-haul flight. Luckily, there in front of you is a shining saviour, a Boots store, filled to the brim with handy travel sized bottles. You forget about the fact that they might be slightly more expensive than in your local store, because you are flooded with relief to have found a way to replace your toiletries...and oh look, there’s a book shop, you could do with something new to read for the flight...

Then there is the food; Dozens of different restaurants and cafes which boast hot, delicious food. It’s a well known fact that aeroplane food is either expensive or inedible. It’s as if the airlines are in cahoots with the airports: ‘Let’s make our aeroplane food as hideous as possible, and then set up restaurants selling glorious, over-priced food just outside the boarding gate, so they are drawn like bees to the honey...’ It’s either a very fortunate coincidence or a stroke of retail genius on the airport’s behalf. All we know as consumers is that we’d much rather eat a hot, cheesy croissant from Pret before a flight, than a cardboard tuna sandwich which tastes suspiciously like nothing on the plane.

We infrequent travelers are simply novices at airport shopping compared to business travelers. They fly all around the world, seeing airport after airport, and they know the difference between eating fresh Mongolian barbeque from Tansu Kitchen at Dubai International Airport, and a stale Sub of the day at Luton Airport. With most business travellers generally earning a high wage, airport retailers are vying for their attention. Expensive perfumes, designer clothes, duty-free alcohol and cigarettes all equal big bucks that translate to revenue, and when passengers have time and money, they will shop.

As airport retail is gaining prominence, it is now seen as a very attractive investment opportunity by retail companies seeking to expand business operations and drive growth. What these companies need are the facts. They want data and in-depth analysis informing them exactly who is buying what, the reasons behind purchases, and the details about which category of retailers are earning the most revenue. This is where the Industry Report Store comes into the picture. A new report examining the trends in the way business travellers spend in airports around the globe is being offered exclusively to our customers.

It explores the business intelligence that is invaluable to companies looking to invest in airport retail. What are the most popular and visible products? What categories generate the most revenue? Do business travellers prefer to spend their money on duty-free alcohol or in the restaurants and bars? This report outlines these facts in exhaustive detail. It blueprints the key findings, including product trends and motivational factors as well as identifying the leading airports in retail. This knowledge analyses the target market, informing airport retail companies in order to keep their business strategies in line with the latest market research intelligence.

If you wish to learn more about this report then contact the Industry Report Store. We have a comprehensive database of reports so if this blog piqued your interest but this particular report isn’t quite what you’re looking for, then don’t hesitate to contact us and we’ll work together to find a report to suit your business intelligence needs.  

Find this report here: Global Business Traveler’s Airport Retail Trends, 2013-2014

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Elizabeth Ryan

Marketing