The Importance of Commercial Revenues

Heri Bezic () and Katija Vojvodic
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Heri Bezic: Faculty of Economics, Rijeka, Croatia

Business Logistics in Modern Management, 2009, vol. 9, 55-67

Abstract: Traditionally commercial requirements haven`t been a primary consideration with regard to the needs of aeronautical operations. However, the airport industry has evolved and today, the airport is becoming a commercial hub. The development of the airport sector, commercialization and privatization within the industry in particular, have provided airports with greater opportunities to expand their commercial activities. The objective of this paper is to highlight the importance of commercial revenues to the airport business. It also indicates clear regional variations in regard to the commercial revenue share. The paper identifies the main features of airport revenues generated from aeronautical and commercial sources. The revenue structure of individual airports may vary substantially from the average. It is mainly a result of the diverse factors affecting either their aviation or commercial revenue-generating potential. Airport retailing has become the main issue in the revenue generating strategies of many airport authorities. A breakdown of revenues for a sample of Dubrovnik Airport is detailed with the retail revenues as the largest commercial source.

Keywords: airport revenue sources; competitiveness; commercial revenues; retail revenues; Dubrovnik Airport (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:osi:bulimm:v:9:y:2009:p:55-67

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