Role of Airports’ Tangible and Intangible Features as Alternate Sources for Retail Revenue Generation – A Study of Karachi Airport in Pakistan
DOI:
https://doi.org/10.56976/rjsi.v6i1.173Keywords:
Airport Environment, Airport Facility, Airport Design, Airport Retail Revenue, Customer Satisfaction, Airport’s Self-Sufficiency, Airport SustainabilityAbstract
The airline industry is among those industries that deal with a large number of customers for the purpose of travelling. However, COVID-19 impacted the revenue streams of the airline industry as travelling by air observed a significant decline. Since airports are an important element of airline operations, they were more affected than airlines as their revenue streams were mainly generated from different consumer spending and rental services. It was realized during COVID-19 that the diversification of revenue streams played a vital role in airports' sustainability and self-sufficiency. This study aims to determine the role of airports’ tangible and intangible features as alternate or additional sources of revenue and observe the mediating role of customer satisfaction. After a careful literature analysis and flipping over various studies, it appears that a lot of research is done on the contribution of the non-aeronautical revenue towards the financial stability of airports, but no study focuses on the role of airport physical features on airport retail revenue and how it can affect airport revenue streams. Therefore, this research study aims to analyze the mediating impact of Customer Satisfaction on the relationship between Airport Environment factors and Airport retail Revenue. Cronbach’s alpha, Reliability, discriminant validity, SD. analysis is used for analysis. The result shows that airport environment and airport design have a significant positive impact on airport retail revenue, while the result also shows that the airport facility has a weak relation with airport retail revenue. It is evident from the results that airport environment and airport design, with an indirect effect on customer satisfaction, can increase the airport retail revenue.
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