Why is airport shopping always exclusively high-end brands?
2 min read
It’s all about economics…First, those shops and restaurants are paying a premium price for the location. That location features a couple of benefits that justify a premium cost:
1. They have high traffic rates.
They know exactly how many people are coming through a terminal on any given day. They probably know exactly how many have a layover with time for shopping/dining. And then, they know what percentage of those are potential customers.
2. Their potential customers fit a specific profile.
For example, there are enough business travelers with enough discretionary spending power to justify the prices and inventory they carry. You have to remember that a lot of business travelers (their ideal market) won’t flinch at paying retail prices for something they like, especially if they don’t have time to go shopping for it outside of the airport.
3. Along the lines of time vs. money, many of their customers have far more money than time so it’s not a hard sell. It’s a convenience.
The same is true of the on-board magazines. They sell ads for a premium, but advertiser needs to see enough margin to justify their spending…so they focus on high margin (high dollar) products.
As to your question, I agree that a lot of us are not going to buy a Rolex from the in-flight catalog, but you can bet that the sellers have done enough testing to insure that they are generating enough from sales to justify the advertising cost. Those that wouldn’t buy are just self-selecting themselves out of the marketing/sales funnel.
This also goes to show why the bottle of water in the airport convenience store is so much more than a typical convenience store. They have to increase their margins across the board to justify their location…but, they can do so because they have the built in thirsty traffic.
Advantages of Flight Advertising
|
| Campaign Name | Media Name | Offer Rate |
|---|---|---|
| Metro Station - Indraprastha, Delhi Ambient Lit Panel | Metro Station - Indraprastha, Delhi | 23000 |
| Platform - Gurgaon | Platform - Gurgaon | 48384 |
