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Essay on EAR

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1 AIRPORT RETAILING IN THE CONTEXT OF AIRPORT DEVELOPMENT
Introduction
Airport Retailing started in 1947 and is often used as a substitute term for duty-free. The two terms are used interchangeably.
The air transport industry
Air transportation is a dynamic, global industry that has altered radically over the past three decades.
Having a thriving international airport or successful national airline can provide a significant contribution to a country’s economic prosperity
The primary benefits that may be expected to accrue include:
The generation of economic wealth ( including tourism and tourist-related activities)
The generation of employment. (the aviation industry employs more than 22 million persons, will grow to 30 million by 2010)
The generation of tax revenues ( travel tax)
Locational benefits ( example; local airports can help attract new business to the region by providing quick and direct accessibility to a transportation infrastructure
The rapid increase in air travel as a transport medium has been attributed to a number of both supply and demand side factors. These include
A change in consumer tastes and needs
A decline in the relative cost of air transport
Increased economic activity
The growth in international trade
Industry evolution
In analyzing the evolution of the air transport industry, two theoretical models assist in the process, these are:
Industrial life cycle ( ILC ) is a model that although simplistic in its approach, assists in providing a basic conceptualization of the evolutionary stages of the development of commercial air transport.
Embryonic - > Growth - > maturity -> Decline ( industrial life cycle)
Embryonic stage is where growth is slow and industry is beginning to develop
The growth stage is where new consumers enter the market having become familiar with the product
Maturity, competition remains intense, growth sow and profits begin to fall
Decline stage occurs when the industry

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