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Economic Crises Case Study

Case Title:

Impact of Global Economic Downturn on Airport Retailing

Publication Year : 2010

Authors: R Shah, J Thadamalla and S Gollapalli

Industry: Transportation


Case Code: ECC0046IRC

Teaching Note: Not Available

Structured Assignment: Not Available

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Retail sales at the airports had been growing fast and the sales touched $27.1 billion in 2007. Such impressive growth made the airport the fastest growing retail channel behind the internet. The increased passenger traffic growth along with the soaring tourists' movements among countries was fuelling the growth of airport retailing. But the global economic downturn with increasing oil prices etc resulted in a rise in air fares, adversely affecting air travel and retail spending at the airports. Whether the airports retailing remain a prominent source of revenue in the global economic downturn remains to be seen.

Pedagogical Objectives:

  • To the dynamics of airport revenues (aeronautical vs non-aeronautical).
  • To CSFs (critical success factor) of airport retailing.
  • To impacts of the global economic downturn on airport retailing.

Keywords :  What is airport retailing?, Growth of airport retailing, Airport's revenue structure, Aeronautical revenue, Non-aeronautical revenue, Concessions at airport, Growth drivers of airport retailing, Air transport agreement, Economic liberalisation, Atlanta international airport, Economic downturn in US, Rise in fuel cost, Growth in global air traffic, Flight delays, Business environment

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