How do Airport Commercial Offerings Maintain Competitiveness in the Era of E-Commerce

Authors : Tasneem Ejaz

Volume/Issue : Volume 3 - 2018, Issue 1 - January

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The competition in the aviation sector is gathering pace throughout the world. With the liberalisation of business in a global market, the consumer preference while choosing a product has become not only price sensitive but also service sensitive. Airports around the world are going through a mass transformation in terms of how they generate revenue.the practice of e-commerce is gaining notoriety in the globalized world market. Some reasons for the success of this new model are a wide variety of products offered; reaching new markets and niche markets, and the concept of “endless supply” that guarantees an edge in cost competitiveness. Traditionally, airports focused only upon aeronautical revenue for its survival but lately they are thriving upon improving non-aeronautical revenue. World scenario says that an average of 60 percent revenue for airport is generated from non-aeronautical sources.For all major international airport operators, utilizing available opportunities in e-commerce offerings is much unexplored area. An airport serves substantial number customer, both directly and indirectly. Broadly, commercial offerings by an airport can be segregated in B2C (Business to Customer) and B2B (Business to Business) segments. The two categories might appear to be independent, but, they are tightly bound from within. This abstract explores, how can an airport leverage e-commerce in both aero and non-aero commercial sector, and, at the same time use cross selling opportunities.


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