Airport retail is the single largest source (32.9%) of airports’ non-aeronautical revenue. Its average compound annual growth rate (CAGR) rate of 7.2% over the last 5 years has continuously reminded people about its sheer importance to airports’ financial sustainability and stability. It is even more significant given that airport’s aeronautical revenue stream is under surging pressure due to airlines’ intense competition to reduce operating cost such as landing fees. Despite the importance of airport retailing to the sustainability of the airport industry, there is a lack of focused academic research on how airport terminal could be optimised to maximise retail revenue. This study is going to explore on how future airport terminals can be better designed to maximise airport retail opportunities using an agent-based simulation approach. The result from this project will lead to a much-needed discussion on the efficiency of the existing airport terminal design practise. It will also bring a better understanding of the airport terminal design, thus, contributes to the future improvement of airport terminal design guidelines from an airport retail perspective.
Dr Cheng-Lung (Richard) Wu