Space allocation for commercial activities at international passenger terminals

Abstract

This study examines the relationships among commercial revenue, passenger service level and space allocation in international passenger terminals. Using mathematical programming, this study constructs a model for maximizing concession revenues while maintaining service level, to optimize the space allocation for various types of stores. This study then uses CKS International Airport as an example to demonstrate the applicability of the models. The results show that total commercial revenues can be maximized by locating the stores with more concession revenue in the more accessible positions. Moreover, the optimal space allocation for commercial activities and public facilities changes with passenger volumes and/or service levels. (C) 2004 Elsevier Ltd. All rights reserved.