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

Author

Listed:
  • Saraswati, Batari
  • Hanaoka, Shinya

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.

Suggested Citation

  • Saraswati, Batari & Hanaoka, Shinya, 2012. "Space allocation for commercial activities in low-cost airport terminals: Soekarno-Hatta International Airport," Journal of Airport Management, Henry Stewart Publications, vol. 6(4), pages 397-411, October.
    • Handle: RePEc:aza:jam000:y:2012:v:6:i:4:p:397-411
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    More about this item

    Keywords

    low-cost terminal; concession space; passenger dwelling time; concession preferences;
    All these keywords.

    JEL classification:

    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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