Quantcast

Airports strategically place luxury brands to target wealthy passengers

Delta crash passengers should take the $30,000 payment, their lawyers say. Here’s why.
Southwest's layoffs dent its worker-first culture
Abu Dhabi's long-haul carrier Etihad Airways sees record $476 million profit in 2024
Jet2 warns of profits squeeze from rising costs and late bookings
Southwest bends further to activist shareholder Elliott's demands
Downgraded on a flight? Take these simple but important steps to get your money back
Delta Offers Over $2 Million to CRJ Crash Passengers
Boeing Delays Continue for Alaska, Hawaiian
Hong Kong Airlines launches daily Sydney flights
Airline to launch new bunk beds in economy on long-haul flights next year
How Airline Employees Are Coping After Deadly Washington Crash
Major airline reverses in-flight menu change amid outcry
British Airways frequent flyer scheme changes: everything you need to know
Airline introduces world-first hand luggage ban on popular travel gadget
Air Canada Delays Boeing 767 Reentry
Flight Centre tips ‘price war’ as first direct Melbourne to LA Delta flights go on sale
FAA reverses course on meeting prohibition, blaming rogue employee
British Airways tweaks frequent flyer scheme after backlash
Delta flight from New York to Florida diverted to North Carolina due to ‘odor in the cabin’
EASA Certifies Safran’s First Electric Motor
US court blocks Biden administration's airline fee disclosure rule
JetBlue Issues Dim Outlook But Execs Remain Confident in Turnaround Plan
Delta to Resume Tel Aviv Flights April 1
Boeing CEO Ortberg outlines 2025 priorities after heavy losses
Storm Eowyn: Thousands of trains, flights and ferries cancelled as 100mph wind batters UK
Indian carrier long haul: IndiGo returns to profitability, plans long haul flights
These Frequent Fliers Are Done With Loyalty Programs
JetBlue accepting Venmo as payment method for flights purchased through mobile app
United Airlines stock rallies on results, as growing demand wasn’t just about premium seats
Delta Adds Another Alaska Route
Airports strategically place luxury brands to target wealthy passengers
Research
Webp txr36ytg6uuvd13i8xrjnuempd4m
Gary Leff Chief Financial Officer | View from the Wing

When flying, passengers are the airline's customers, not the airport's. Airports often do not know individual passengers but view them as products. Their real clients are airlines and local politicians. This perspective influences decisions such as the removal of moving walkways at airports like Dallas-Fort Worth and Chicago O'Hare to encourage shopping rather than convenience.

Both airports and airlines benefit from retail sales revenue, incentivizing them to promote shopping. Terminal renovations are frequently funded by selling income streams to private developers who favor high-end shops for their higher transaction values.

Despite appearances, luxury brands like Louis Vuitton, Chanel, and Cartier have a presence in airports worldwide. Tyler from Kenji Capital tweeted on June 22, 2024: "Are people really buying Gucci, Hermes, and luxury goods at the airport? San Francisco International pic.twitter.com/QlTl0mG8LO."

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

Five reasons explain why passengers purchase luxury items such as Hermès, Prada, and Gucci while waiting for flights:

1. Passenger demographics skew wealthy among long-haul business and first-class customers. High-end retailers are commonly found in international terminals serving expensive ticket holders.

2. Shoppers on vacation tend to monitor their spending less closely, making them more likely to buy expensive souvenirs or gifts.

3. Passengers from smaller cities without these stores may shop at major connecting hubs that support long-haul flights.

4. Jet lagged and bored travelers might make impulsive purchases influenced by mimetic desire—wanting what others want because they see others wanting it.

5. Money laundering can be a factor; purchasing expensive goods at airports allows individuals to carry items out of the country and sell them abroad for foreign cash.

The strategic placement and marketing of luxury brands ensure that even discerning travelers find themselves tempted to splurge while waiting for their flights—all benefiting the terminal’s residual claimants.

Organizations Included in this History
More News

United Airlines has announced the issuance of travel waivers for passengers whose flights were affected by closures at London Heathrow Airport.

Apr 2, 2025

ITA Airways announced that flight AZ806 managed to land safely after a brief hold due to nearby missile activity.

Apr 2, 2025

EVA Air has announced the reinstatement of its Premium Economy Class on the Seattle route, with three weekly flights scheduled from March 8 through July 27.

Apr 2, 2025

Emirates Airlines has announced the launch of a new door-to-door delivery service called 'Very Important Parcels' (VIPs), promising the same level of care as provided to its passengers.

Apr 2, 2025

Cargolux has announced the transportation of two lions, Tsar and Jamil, from captivity in Ukraine to a wildlife sanctuary in South Africa.

Apr 2, 2025

Hainan Airlines announced that its Beijing–Oslo flight HU769 landed successfully in Norway.

Apr 2, 2025