Including airport duty-free shopping in arriving passenger simulation and the opportunities this presents

Simulating passenger flows within airports is very important as it can provide an indication of queue lengths, bottlenecks, system capacity and overall level of service. To date, visual simulation tools such as agent based models have focused on processing formalities such as check-in, and not incorporate discretionary activities such as duty-free shopping. As airport retail contributes greatly to airport revenue generation, but also has potentially detrimental effects on facilitation efficiency benchmarks, this study developed a simplistic simulation model which captures common duty-free purchasing opportunities, as well as high-level behaviours of passengers. It is argued that such a model enables more realistic simulation of passenger facilitation, and provides a platform for simulating real-time revenue generation as well as more complex passenger behaviours within the airport. Simulations are conducted to verify the suitability of the model for inclusion in the international arrivals process for assessing passenger flow and infrastructure utilization.

Passenger experience and their implications for airports retail environment design

This project develops new knowledge on the full range of activities and interactions that make up airport passengers' retail experiences. The practical application of this new knowledge will improve the design of airport retail environments and will, in turn, improve passenger experiences, leading to further growth in the airport retail market. The novel methodological approach developed allowed for a new and deeper understanding of how passengers actually experience airport retail environments. Four significant outcomes were discovered: (i) the categorisation of the full range of retail activities and interactions passengers actually undertake, (ii) a new understanding of how passengers use and experience their free airport time, (iii) two new passenger market segments, and (iv) two passenger retail experience tools, with these identifying the broad range of airport-specific factors which influence passengers retail experiences.

Understanding the airport passenger landside retail experience

The landside environment of an airport terminal is an important area for both passengers and the airport as it is the first area passengers enter and experience, influencing passengers’ overall airport experiences. This paper focuses on landside passenger experiences and factors which influence the quality of these experiences. Data collection occurred through video recorded observations of 40 passengers’ airport experiences at two Australian international departure terminals. The Observer software was used to code and analyse data. Indicative results show that passengers spend over half of their landside dwell time undertaking processing activities. The results highlight the important influencing role passengers’ companions have over the proportion of landside dwell time passengers spend undertaking discretionary activities. The findings provide an understanding of passenger landside experiences and how they can be improved. The significance of these findings lies in their potential application to landside airport terminal design with specific examples outlined. This new knowledge will assist in improving passenger airport experiences through informing future airport planning and design of landside spaces and retail environments.

Towards compatible and integrated airport and regional land use planning in Australia

Over the past decade privatised capital city airports in Australia have planned developed a range of non aviation commercial and retail land uses on airport land. Many surrounding municipalities consider this development in conflict with existing regional land use planning. Conversely airport operators are alarmed at continued urban consolidation and encroachment of incompatible regional development. Land use planning within and surrounding Australian capital city airports does not support compatible and integrated land use. It is currently a fragmented process due to: 1) current legislative and policy frameworks; 2) competing stakeholder priorities and interests; and 3) inadequate coordination and disjointed decision-making. This paper will examine privatised Australian airport development and consider three case studies to detail the context of airport and regional land use planning. A series of stakeholder workshops have served to inform the procedural dynamics and relationships between airport and regional decision-making. This exploratory research will assist in informing the knowledge gaps between aviation, airport development and broader urban land use policy. This paper will provide recommendations to enhance approaches to land use planning for airports and adjacent metropolitan regions in Australia and overseas.

Commercial developments in airport precincts : lease and valuation issues : preliminary study

Over the past 30 years the nature of airport precincts has changed significantly from purely aviation services to a full range of retail, commercial, industrial and other non aviation uses. Most major airports in Australia are owned and operated by the private sector but are subject to long term head leases to the Federal Government, with subsequent sub leases in place to users of the land. The lease term available for both aviation and non aviation tenants is subject to the head lease term and in a number of Australian airport locations, these head leases are now two-thirds through their initial 50 year lease term and this is raising a number of issues from a valuation and ongoing development perspective. . For our airport precincts to continue to offer levels of infrastructure and services that are comparable or better than many commercial centres in the same location, policy makers need to understand the impact the uncertainty that exists when the current lease term is nearing expiration, especially in relation to the renewed lease term and rental payments. This paper reviews the changes in airport precinct ownership, management and development in Australia and highlights the valuation and rental assessment issues that are currently facing this property sector.

Frontier Techniques for Measuring and Estimating Airport Efficiency : An Empirical Review with Practical Guidelines for Analysis and Future Research

Airport efficiency is important because it has a direct impact on customer safety and satisfaction and therefore the financial performance and sustainability of airports, airlines, and affiliated service providers. This is especially so in a world characterized by an increasing volume of both domestic and international air travel, price and other forms of competition between rival airports, airport hubs and airlines, and rapid and sometimes unexpected changes in airline routes and carriers. It also reflects expansion in the number of airports handling regional, national, and international traffic and the growth of complementary airport facilities including industrial, commercial, and retail premises. This has fostered a steadily increasing volume of research aimed at modeling and providing best-practice measures and estimates of airport efficiency using mathematical and econometric frontiers. The purpose of this chapter is to review these various methods as they apply to airports throughout the world. Apart from discussing the strengths and weaknesses of the different approaches and their key findings, the paper also examines the steps faced by researchers as they move through the modeling process in defining airport inputs and outputs and the purported efficiency drivers. Accordingly, the chapter provides guidance to those conducting empirical research on airport efficiency and serves as an aid for aviation regulators and airport operators among others interpreting airport efficiency research outcomes.

Are you on board? The role of design-led innovation in strengthening key partnerships within an Australian airport

A popular lexicon for announcing partnerships within aviation is being ‘on-board’. Like boarding a plane, business partnerships requires trust in the expertise and the philosophy of another organisation. This paper reports upon the process and findings from the completion of a customer engagement project within a leading Australian Airport, as part of the wider uptake of design-led innovation. The project was completed bilaterally with Airport Corporation and prominent retail business partner undertaking a design-led approach to collaboratively explore an observed market trend affecting the performance of both businesses. A design-led catalyst facilitated the completion of this project, working within the Airport Corporation to disseminate the skills and philosophy of design over an 18 month period using an action research method. Findings reveal that the working environment necessary for design to be utilised requires; trust in the design-led approach as a new and exploratory way of completing work; leadership within the execution and delivery of project deliverables, and; a shared intrinsic motivation to develop new skills through a design-led approach which challenges a business-as-usual mentality (BAU). Design-led innovation can be deployed specifically to strengthen business partnerships through collaborative and explorative customer engagement.

Translating emotional insights into digital channel designs: Opportunities to enhance the airport experience

Purpose The purpose of this study is to identify and understand the emotions behind a passenger’s airport experience and how this can inform digital channel engagements. Design/methodology/approach This study investigates the emotional experience of two hundred (200) passengers’ journeys at an Australian domestic airport. A survey was conducted which implemented the use of Emocards and an interview approach of laddering. The responses were then analysed into attributes, consequences and values. Findings The results indicate that across key stages of the airport (parking, retail, gates and arrivals) passengers had different emotional experiences (positive, negative and neutral). The attributes, consequences and values behind these emotions were then used to propose digital channel content and purpose of various future digital channel engagements. Research limitations/implications By gaining emotional insights airports are able to generate digital channel engagements, which align with passengers’ needs and values rather than internal operational motivations. Theoretical contributions include the development of the Technology Acceptance Model to include emotional drivers as influences in the use of digital channels. Originality/value This research provides a unique method to understand the passengers’ emotional journey across the airport infrastructure and suggest how to better design digital channel engagements to address passenger latent needs.

The impact of airport shopping environments and dwell time on consumer spending

This article provides new insight into how the ambience and design of shopping environments impact onspending behaviour. Environmental cues in a retail area influence emotional states of by-passers, which in turn influence spending levels. Past research suggested that this effect only applies to shops with moderate arousal level. Also, several studies failed to confirm a relationship between emotions and spending levels. This is surprising, since high arousal environments (e.g., amusement parks, sports stadiums and airports) often feature a wide range of retail outlets. Based on survey data collected in a live airport shopping area, this study finds a relationship between pleasure emotions associated with the retail area and recalled consumer spending, but also the time available for shopping (which in an airport is constrained). Also, visitors’ emotional state was influenced by the ambience (e.g., cleanliness, noise levels, lighting) as well as the design (e.g., easy wayfinding, seating areas) of the retail area. Shopper’s arousal levels did not explain variations in spending level. Implications for researchers and managers are discussed as well as suggestions for future research.

Doing Time in the Retail Industry

This paper uses survey data to explore employee satisfaction with working time arrangements within a large supermarket chain in Queensland. The findings confirm those in the literature that employees have a diverse range of working time preferences, and that employees will be more satisfied if those preferences are met by their employer. In general, many full-time employees wanted shorter hours and a sizeable proportion of part-time employees wanted longer working hours. This paper is a preliminary attempt at teasing out the explanations behind working time preferences.

The relationship between Internet use and perceived performance in retail and professional service firms

lnformation technology (IT) and, in particular, the Internet is dramatically impacting on the services sector. This paper specifically investigates the relative impact of several forms of internet use on perceived performance for two groups of service organisations - retail service firms and professlonal health service firms. Using a mailed out self-administered questionnaire, 625 completed questionnaires were obtained and 43 per cent of respondents reported that they used the lternet. Thus the final usable sample in the study comprised 262 respondents. Results showed that the Internet does significantly influence perceived performance in both types of service firms. However,there are differences in the forms of lntemet use between the two service groups and their relative effect on performance. For retail firms, use of transactional function, such as ordering, selling and payment was found to be positively related to increases in perceived performance. In contrast, for professional health service firms, the ability to search for information on products and/or services was found to be positively associated with perceived performance. Finally, theoretical and managerial implications of the findings of this study are discussed.