Abstract

This article applies econometric analysis to identify the determinants of nonaeronautical revenues and rent payments at selected US airports, based on a panel data set from 2000 to 2008. The study focuses on specialty retail and food and beverage (F&B) services, which are the major nonaviation activities at US airports, in addition to parking and rental car services. The performance of specialty retail and F&B is influenced by characteristics such as concession space and number and characteristics of passengers— in particular, domestic versus international, leisure versus business, and origin and destination (O&D) versus connecting passengers. The article illustrates how different passenger types contribute to specialty retail and F&B revenue, and how specialty retail and F&B revenues differ in their contributions to rent payments to airports. We also show how nonaviation performance differs for terminals serving only low-cost carriers (LCCs) and terminals that serve full-service airlines.

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