Sabargam International Journal of Research in Multidiscipline
ISSN: 2456-4672
Volume I, Issue I, Oct 2016
Airport Retailing: Literature Review
Dr. Dharmendra Mehta
Reader, FMS, Pt.JNIBM, Vikram University, Ujjain
Dr. Pramod Goyal
Faculty, Department of Masters of Business Administration, CDGI, Indore
Dr. Naveen K Mehta
Associate Professor, SUBIS, Barla
ABSTRACT:
Airport Retailing is all about opening retail outlets at airports. Location is a key dimension of
retailing. Non Traditional locations are now emerging as key areas to target retailing. Airport
retailing is a nontraditional and is a new phenomenon even in the west. However, with national
and international traveling becoming very common and affordable, utilizing retailing
opportunities at the airport are becoming important for retailers. Work stations, malls, duty-free
shops, are all set to change the perception of airports.
In today's busy schedule while keeping pace with the changing times, people are keen on doing a
lot simultaneously. The smart and intelligent traveler today is no more an ordinary man as he
wants nothing but the best. And that is what the retail stores are working for at the airports in
India. At this backdrop, the present paper discusses the previous research on the basis of
literature survey.
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Sabargam International Journal of Research in Multidiscipline
ISSN: 2456-4672
Volume I, Issue I, Oct 2016
Key Words: Airports, Retailing, Customers, Satisfaction, Shopping, Passengers.
INTRODUCTION:
Airports in India are one of the most promising sectors for retail development. Today every
premium brand in India is keen on participating in the airport's retail zone. Airport retail
environment offers various brands of luggage, clothing and accessories that obviously have a
high sensitivity and appeal. Destination food and souvenirs is another specialized segment.
Indian Retail Companies are all geared up to grab the opportunity as they find it beneficial to
open retail outlets at airports. The target audience comprising of passengers, visitors and escorts,
is acting as the main attraction for these companies. Opening outlets at the airport is beneficial
for both, the companies as well as the travelers. Each and every kind of retailer is likely to be
involved in the retail of goods, like cookies, candies, casuals, formals, accessories, brown goods,
white goods, departmental stores, value stores, food, general merchandise, perfumes, cosmetics,
liquor and tobacco.
The volume of air travel has grown at a strong pace in recent years. Today air passengers are
flying more because of growth of low-cost airlines and hence are spending more time in airports.
This should make airports one of the most exciting areas in Indian retail. For the business
traveler who travels late at night or catches an early morning flight, new retail outlets at airports
will be definitely beneficial him as he does not have time to move around the city. Airports
operators will also beneficiated as it generates money in terms of rent and other tie-ups.
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Sabargam International Journal of Research in Multidiscipline
ISSN: 2456-4672
Volume I, Issue I, Oct 2016
LITERATURE REVIEW:
Airport retailing is a niche area hence less number of research work has been done. Some of the
eminent research works done in Airport Retailing area are discussed.
Gary (1995) stated that the primary role of the retail store or the retail centre is to attract the
shopper to the location. He found that alternative paradigm exists of taking retailing to where
there are people either at home or in crowds and it further add that, just because a crowd exists
does not mean that the people in it can be easily converted to being shoppers.
Fernie (1995) discussed the historical evolution of out-of-town shopping developments in the
UK, from the superstores retailing food, DIY, carpets and electrical products to new formats of
warehouse clubs, factory outlet centres and airport retailing.
Gavin Humphries (1996) revealed that threat and opportunities exist in an airport retailing in a
global market and discusses main factors for the growth of airport retailing like GDP, National
income etc.
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Sabargam International Journal of Research in Multidiscipline
ISSN: 2456-4672
Volume I, Issue I, Oct 2016
Steve Baron, Karen Wass (1996) have discussed the shopping Behaviour of international
passengers in a UK regional airport and reveals that there is a impulse purchasing brought about
by affective responses to the airport context
Sunderland (1998) revealed that today airports all over the world are turning those drab spaces
into revenue-generating, exciting environments that reduce stress instead of inducing it. And the
aim is to provide a feeling of delight to be in the airport - ensuring that the "travel experience"
begins when the customer enters the airport, long before setting foot on the plane.
Freathy and O’Connell (1998) concluded that Airport retailing has undergone a series of
significant developments over the last two decades and now occupies a central position in the
revenue generating strategies of many airport authorities.
Freathy and O’Connell (1998) discussed the structure of the supply chain within airport
retailing. They concluded that relative to other retail sectors, relationships within the airport
retailing supply chain are technologically unsophisticated and based on conventional market
exchange principles.
Rowley and Slack (1999) studied that airport departure lounges as environments in which
timelessness and placeness might be exhibited as a key dimension for retail experiences by
passengers.
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Sabargam International Journal of Research in Multidiscipline
ISSN: 2456-4672
Volume I, Issue I, Oct 2016
Paul Freathy, Frank O’Connell (2000) have argued that macro-level factors , over which the
industry has no control , have compelled airports to expand their commercial activities and hence
airport authorities have been forced to adopt a more marketing oriented approach.
Omar (2001) found that empirically that airline passengers' self-assessment about the
appropriateness of engaging in impulse shopping behavior moderate the relationship between the
airport influences on impulse shopping and passengers' behavior.
Joseph and Dogan (2001) have listed factors which affect the tourist perception towards choice
of airlines.
Omar O, Kent A (2001) found that Airport retailing is characterized by airport environmental
conditions and air travelers tend to make impulse purchases.
Ogenyi Omar, Anthony Kent (2001) found that the relationship between airport impulsive
shopping and the related shopping behaviour is significant only when airport shoppers believe
that acting on impulse is appropriate.
Herring (2002) found that investing in airport retail based project is a stable investment
particularly in today’s global and dynamic environment, hence marketers should encash it.
Gerry Crawford, T C Melewar (2006) identified that airports are unique retail environment
due to the environmental and psychological issues linked with the travel process such as feeling
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Sabargam International Journal of Research in Multidiscipline
ISSN: 2456-4672
Volume I, Issue I, Oct 2016
of anxiety, stress and excitement and if airport retailer crate environment to wipe off there will
force impulse purchasing at airports.
Peter James Ryan (2006) research work argued that on-an airport, retail is a balance between
fundamental discipline and customer relevance. It describes that airport retail is a customer-led
retail trends which affect not only best practice retail, but the ongoing relevance of the on-airport
offer and hence its profitability
Mark , Kahlar (2007) have carried out survey on budget travel and consumer perception about
airline and facilities provided by civil airlines.
Bork (2007) found that most airports acknowledge the importance of attracting airline customers
by practicing ‘airline marketing’, such as opening new routes or increasing frequencies on
existing routes
Wakefield (2007) found that tremendous growth of retailing at airport is expected in Asia and
Middle East. It reveals that airports are beginning to be recognized as lucrative markets, enabling
global and indigenous retailers to establish their brand presence.
R. Sharma (2007) have found that in India, 35% of the Country’s trade by values goes by air
and hence aviation will drive development of business in the 21st century just the cars did in the
20th century.
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Sabargam International Journal of Research in Multidiscipline
ISSN: 2456-4672
Volume I, Issue I, Oct 2016
Mark Entwistle (2007) Airports need to undertake a three-stage process to developing great
retailing that appeal to their passengers. First, it is crucial to understand the passenger experience
and their mindset and is vital to know passengers as intimately as possible. Secondly, it is
necessary to determine how much retail space is required and the best locations for this
space.Thirdly, an offer must be developed that 'fits' with the passenger requirements. His
research findings said that it is of little use placing a ladies' footwear shop in a terminal
dominated by male business travellers. Entwistle emphasize to create a 'sense of place'. i.e.
passengers know that they have arrived in the shopping area of the airport. In addition, if the
shopping area can promote a local feel then this will also help to create a compelling retail
environment.
Virendra Dhyani (2007) explored the emerging concepts of Airport Retailing in India. It
describes that both the sector aviation and retail in India are growing at a brisk rate and the
opportunity is vast for both the sector as emergence of low cost airlines and increase in number
of passengers and hence to keep waiting passengers busy by offering variety of products will
definitely throw retail opportunities at Airport.
Nick Gladding (2008) stated that retail sales at airports will grow by 11% in 2010 to more than
$30 billion, making it the fastest growing channel of retail after the Internet. Report describes
that pace is slow; retail sales are set to continue to grow strongly over the next five years,
particularly in emerging markets, driven by the rapid increase in air travel by passenger due to
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Sabargam International Journal of Research in Multidiscipline
ISSN: 2456-4672
Volume I, Issue I, Oct 2016
increased affluence, growing tourism and major investment in new airports and retail facilities.
The increase in business travel as a result of globalization is providing a further boost to airport
retailers.
Shikha Chaturvedi, Geeta Neema (2008) have found that even service class people have
different level of awareness and frequency of travelling time while choosing a specific airlines,
their perceptions is also based qualitative discount and connectivity along with the flight facility.
Baltas et al. (2010) remarked that a focused strategy of patronage can only be effective if
consumers share in common characteristics and when correlated, can further predict targeting
efforts of shopping behaviors.
Bhaskar and Shekhar (2011) observed that the critical factors effecting apparel service quality
and should concentrate more on Personal interaction and Reliability of the store in order to
enhance their service. The study also revealed that service quality factors will significantly
effects customer satisfaction.
Sharma and Nanda (2012) suggested that browsing activity should be encouraged in such a
way that it leads to actual purchase of products at the airports. Also, the retailers at the airport
need not devise strategies for impulse purchase based on the age, gender and income group of
the passengers.
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Sabargam International Journal of Research in Multidiscipline
ISSN: 2456-4672
Volume I, Issue I, Oct 2016
Goyal (2012) found that product attributes such as quality, packaging and variety are found to be
the most potential preference by air Passengers’ at Indian airports. Hence, concluded that there is
no substitute for quality of products and its features.
Bodouva (2015) tried to identify the relationship between reference group values and retail
image as a predictor for shopping patronage at airports. The result of the analysis showed strong
significance and support for reference group values and how they can influence shopping
patronage decisions. Further support indicated a strong significance when testing similarities and
difference, as they relate to personal values, which suggested that personal values can co-relate
in understanding consumer behaviors and possibly predicting shopping patronage.
CONCLUSIONS:
Airport retailing concept is gaining importance in India and hence requires more attention to
understand and promotion at airports in India. It has been observed and found that there is vast
potentiality of the retail venture at Indian airports, and also it provides the opportunities to the
retailers to establish retail business at airports. It is also grasped that airport retailing became an
additional revenue generation model for both the industry i.e. Aviation industry and Retail
Industry, both are growing at brisk rate in India. This new concept will provide niche areas for
retailers to market their specialty products and services i.e. new segmentation for retailing their
products and services. Also Civil Aviation companies can restructure their Passenger Satisfaction
strategies accordingly as per the finding of the study. Airlines and retail service providers will
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Sabargam International Journal of Research in Multidiscipline
ISSN: 2456-4672
Volume I, Issue I, Oct 2016
also be hugely benefited, i.e. Co-branding/Co-marketing efforts can be launched /offered to
deliver up to the rising expectation of air travelers. Further airport retail concept can be used to
reduce the stress level and fatigue-ness of passengers caused by travelling i.e. by providing
appropriate retailing opportunities at airports. Undoubted, Airport retailing can emerge as
wonderful concept in 21st century in India.
PROPOSED MODEL EFFECTIVE AIRPORT RETAILING
Attract Air
Passengers’
Retain Air
Segment
Air
Passengers’
Passengers’
Airport
Retailing
Convert
and
Encash
Offer
Air
Passengers’
Talk to
Air
Passengers’
Source: Model Developed on the Basis of Findings and Review of Literature
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
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Sabargam International Journal of Research in Multidiscipline
ISSN: 2456-4672
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Volume I, Issue I, Oct 2016
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Sabargam International Journal of Research in Multidiscipline
ISSN: 2456-4672
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