LCCs demand re-think by airport retailers - CiR

BTN News
Tuesday, 25 April 2017
Airport duty free and travel retailers need to pay more attention to changes in the low-cost carrier (LCC) market if they want to optimise retail sales, according to Counter Intelligence Retail (CiR).
In particular, they need to offset lost sales when LCCs move from secondary to major hub airports.
 
CiR says passenger growth is no longer a guarantee of corresponding increases in retail sales and “DF and TR operators will have to plan and research better – by country, nationality and location – just to get the same results,” said Garry Stasiulevicuis, CiR's president.
 
“The fact is that without LCCs, loss-making airports would struggle even more, financially,” said Stasiulevicuis.
 
“The world’s top 10 airports account for 20 per cent of all passengers – while the top 20 airports account for 31 per cent of all global traffic.
“This concentration is set to grow - and LCCs have started to gravitate to larger airports serving the same catchment area, as this is more convenient for customers.”
 
“As well as the trend to larger hubs – which they used to avoid because of their higher costs – the rise in long-haul LCCs also looks like it might persist after many false starts over the years,” Stasiulevicuis added.

LCCs demand re-think by airport retailers - CiR

BTN News
Tuesday, 25 April 2017
Airport duty free and travel retailers need to pay more attention to changes in the low-cost carrier (LCC) market if they want to optimise retail sales, according to Counter Intelligence Retail (CiR).
In particular, they need to offset lost sales when LCCs move from secondary to major hub airports.
 
CiR says passenger growth is no longer a guarantee of corresponding increases in retail sales and “DF and TR operators will have to plan and research better – by country, nationality and location – just to get the same results,” said Garry Stasiulevicuis, CiR's president.
 
“The fact is that without LCCs, loss-making airports would struggle even more, financially,” said Stasiulevicuis.
 
“The world’s top 10 airports account for 20 per cent of all passengers – while the top 20 airports account for 31 per cent of all global traffic.
“This concentration is set to grow - and LCCs have started to gravitate to larger airports serving the same catchment area, as this is more convenient for customers.”
 
“As well as the trend to larger hubs – which they used to avoid because of their higher costs – the rise in long-haul LCCs also looks like it might persist after many false starts over the years,” Stasiulevicuis added.