Space allocation for commercial activities in low-cost airport terminals: Soekarno-Hatta International Airport

Abstract

This study discusses space allocation for concessions in a low-cost terminal. An optimisation model is utilised to allocate space for each concession in a given location based on the concept of potential buyers. The model considers low-cost carrier passenger characteristics, specifically their concession preferences and dwelling time patterns. In this study, Terminal 3 in Soekarno-Hatta International Airport is used as a case study to demonstrate the applicability of the model. Food and beverages are found to be the most preferable and profitable concession. Concession sales from the airside account for a greater proportion of revenue, due to the greater number of potential buyers and higher penetration rate.