Towards a more retail-friendly airport design: a two-step approach

In recent years, the source of airport revenue has significantly changed. Accordingly, many airports have adjusted their strategies and focused on increasing retail revenue to improve financial sustainability. However, the literature review in this thesis identified two knowledge gaps: (1) empirical analyses on the effects of airport terminal design on retail revenue, and (2) application of general consumer shopping behaviour models to airport retail development. A two-step approach was developed. First, passenger shopping behaviour models were constructed based on two datasets collected at a case study airport: (1) eye-tracking data identified four types of passenger shopping behaviour—completely planned shoppers, partially planned shoppers, unplanned shoppers, and non-shoppers; (2) passenger questionnaire/interview data provided demographic and travel-related data to construct behaviour models. Second, the validity of the behaviour models was tested through an agent-based simulation model (ABSM) against the collected data. Next, the ABSM was used to examine the combined effects of passenger-related factors and terminal-related factors on retail revenue using five scenario studies. The results of the two-step approach revealed several significant findings. First, the passenger mix significantly affects retail revenue. Second, retail revenue could increase by 30% if passengers’ ‘visual distance’ was increased. Although passengers have limitations in their physical visual distance, it could be increased by providing information on retail offerings to passengers (e.g. interactive floor maps, mobile apps to provide retail information). Third, a 1% increase in dwell time could result in a 1.06% increase in retail revenue. Fourth, a sub-optimal terminal layout design could lead to a USD 57 million loss in potential annual retail revenue. Finally, adopting a centralised terminal layout could lead to a 7% increase in retail revenue. This thesis highlights the potential economic benefits of a well-designed terminal with a retail focus. In addition, this thesis demonstrates the feasibility and the potential of the proposed two-step approach in improving the existing retail configuration within airport terminals while maintaining the aeronautical functions. In conclusion, future terminal design guideline could be improved by adopting the two-step approach in designing a more retail-friendly terminal, which will contribute to the financial sustainability of the airport business