If you run a retail outlet or you are just about starting a retail business, then you might want to consider opening your next retail shop outlet in and around an airport facility.
Securing a shop space in an airport facility might not come cheap, as a matter of fact, it is very expensive when compared to similar shop space in the same city, but you can rest assured that you will generate more sales from the shop than what you will generate if you have your shop outside the airport.
You may want to ask, why are airports such a profitable place to have a retail business? Trust me, there are several reasons why airports are such a profitable place to have a retail business, and that is what we will discuss in this article.
Why Are Airports Such a Profitable Place to Have a Retail Business?
High Foot Traffic
Generally, most airports attract a constant flow of travelers, including both departing and arriving passengers. As expected, wherever you have high foot traffic, you will definitely have high patronage.
This is one of the major reasons why business consultants usually recommend that an entrepreneur who wants to open a retail business or any business should target any location with high foot traffic.
It is easier for people who are walking on their feet to branch into any retail shop for window shopping or to purchase any item that catches their fancy.
If you have ever passed through an airport, especially an international airport, you will agree that airports usually attract people from diverse demographics.
Based on the diverse demographics that pass through airports, it is easier for a retail outlet to attract a steady flow of people who will need what they are selling.
For example, if you own a bookshop in an airport that retails business books, you will not struggle to attract business travelers who are the major target market for business books.
Another major reason why airports are such as profitable place to have a retail business is the fact that in airports, you have a captive audience.
Funny as that sounds, people who are in airports usually come ahead of their flight time to check in and wait for their flights. When you have people a captive audience in an airport, it is easier for retail shops to attract such people.
Come to think of it, people who are considered captive audiences will naturally look for anything or any activities that will help them cure boredom.
The fact that airports often have limited retail competition makes airports such a profitable place to have a retail business.
If you are familiar with how retail outlets are structured in an airport, you will notice that the management of airports usually has limited space for retailers hence, they make sure they maximize the spaces they have.
For example, if an airport has 20 shop outlets, they will allocate the spaces in such a way that it will accommodate different businesses.
They will not want to have all the retail outlets occupied by a restaurant. As a matter of fact, they might only allow 2 or 3 restaurants hence giving room for little or no competition.
Another major reason why airports are such a profitable place to have a retail business is the fact that in airports, you have people who engage in impulsive buying.
Studies conducted over the years on the psychology of marketing reveal that it is easier for travelers to make impulse purchases while traveling or waiting for their flights, especially for items like souvenirs, electronics, or reading materials.
Come to think of it, gift shops at airports usually attract travelers because they usually need what they will gift their family members and friends.
Extended Operating Hours
The fact that airports usually operate 24/7 gives room for retail shops to have extended operating hours. This makes airports such a profitable place to have a retail business.
With extended hours of operation, a retail shop in an airport will be able to take care of the retail needs of passengers arriving and departing at all times of the day and night.
It might interest you to know that retail shops in airports can easily become global brands. This is so because establishing your presence as a retail business in an airport can provide valuable brand exposure. Travelers from various regions and countries may discover and become loyal customers of brands they encounter in airports.
However, it is important to note that operating in airports often involves higher leasing costs and compliance with airport regulations, which should be factored into the decision-making process for businesses considering airport locations.