Space allocation for commercial activities in low-cost airport terminals: Soekarno-Hatta International Airport

Batari Saraswati and Shinya Hanaoka

Journal of Airport Management, 2012, vol. 6, issue 4, 397-411

Abstract: This study discusses space allocation for concessions in a low-cost terminal. An optimisation model is utilised to allocate space for each concession in a given location based on the concept of potential buyers. The model considers low-cost carrier passenger characteristics, specifically their concession preferences and dwelling time patterns. In this study, Terminal 3 in Soekarno-Hatta International Airport is used as a case study to demonstrate the applicability of the model. Food and beverages are found to be the most preferable and profitable concession. Concession sales from the airside account for a greater proportion of revenue, due to the greater number of potential buyers and higher penetration rate.

Keywords: low-cost terminal; concession space; passenger dwelling time; concession preferences (search for similar items in EconPapers)
JEL-codes: M1 M10 R4 R40 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jam000:y:2012:v:6:i:4:p:397-411

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