European Airport Concessions: Retail Strategies to Improve Commercial Revenue from Leisure ...

144 Pages·2016·1.43 MB·English

Walden University
ScholarWorks
Walden Dissertations and Doctoral Studies
Walden Dissertations and Doctoral Studies
Collection
2015
European Airport Concessions: Retail Strategies to
Improve Commercial Revenue from Leisure
Travelers
René W. B. Puls
Walden University
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Walden University

College of Management and Technology

This is to certify that the doctoral study by

René Werner Bernd Puls

has been found to be complete and satisfactory in all respects,
and that any and all revisions required by
the review committee have been made.

Review Committee
Dr. Cheryl Lentz, Committee Chairperson, Doctor of Business Administration Faculty

Dr. Gwendolyn Dooley, Committee Member, Doctor of Business Administration Faculty

Dr. Judith Blando, University Reviewer, Doctor of Business Administration Faculty

Chief Academic Officer
Eric Riedel, Ph.D.

Walden University
2015
Abstract

European Airport Concessions: Retail Strategies to Improve Commercial Revenue from
Leisure Travelers
by
René Werner Bernd Puls

MBA, Troy University (USA), 2007
BBA, Graduate School of Business Administration (CH), 2004

Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration

Walden University
December 2015
Abstract
Aeronautical revenue from landing and handling charges to carriers is falling
significantly below 60% of total revenue and will not persist as the main source of
income for airports. Airports in Europe cannot continue to rely on profits from airlines;
operating companies need to improve the competitiveness through commercial income
from different traveler types. The purpose of this multiple case study was to understand
the elements of successful sales strategies by concessionaires (retailers) at the
metropolitan airport system of Zurich and Basel in hopes of improving the
nonaeronautical revenue from leisure travelers, a price-sensitive customer segment. The
conceptual framework was corporate strategic planning with the underlying concept of
sustainable business operations. Semistructured interviews included 9 executives and
senior managers of concessions and retail operations at Zurich International and Basel
EuroAirport, and covered major themes such as managing the shopping experience of
passengers as well as collaboration between concessionaires, airports, and airlines. The
key findings, which emerged from an inductive analysis of the data, were that the
identification of personalized offerings and the inclusion of individual travelers’ needs
are required to ensure a flexible approach by each airport and shop location throughout
the terminal. The collected data contained indicators for holistic and targeted concepts by
retail concessions in cooperation with airport stakeholders. Social implications include
sustainable retail strategies by promoting value adding products and services, improving
the passenger’s travel experience, and ensuring the profitability of concessionaires in a
changing aviation market.
European Airport Concessions: Retail Strategies to Improve Commercial Revenue from
Leisure Travelers
by
René Werner Bernd Puls

MBA, Troy University (USA), 2007
BBA, Graduate School of Business Administration (CH), 2004

Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration

Walden University
December 2015
Dedication
To my beloved wife, who has been a continuous and patient supporter during this
period of learning, traveling, research, and writing. Without her, many achievements
would not have been possible. She provided an environment, in which I was able to focus
on the essence and quality of this doctoral study and during the course of the entire DBA
program.
Acknowledgments
The completion of this doctoral study would not have been possible without the
support of many people, who contributed at different stages of the DBA program. I would
like to thank my chair, Dr. Cheryl Lentz, for her dedication to my success and the
completion of a journey that I consider an experience of a lifetime. The working and
learning relationship spread from New Mexico to Switzerland across 8 time zones and,
thanks to her professionalism and the use of technology, she managed providing an
excellent support as a mentor and facilitator.
I would also like to acknowledge my committee members, Dr. Gwendolyn
Dooley and Dr. Judith Blando, who provided valuable feedback during the review
process and enabled the ultimate learning experience for achieving the goals and
objectives of such an endeavor called DBA study. For me as a non-native English
speaker, their support has been much appreciated. Having had such a great committee
was truly an honor and privilege to me.
Some of the required networking efforts would have been a lengthy and most
likely iterative cycle without the help of Dr. Andreas Wittmer, who managed to provide
contacts and making connections of invaluable contribution as part of the research
process. My appreciation to all interview participants, experts, and friends, who shared
their knowledge and opinions, making this doctoral study a solid contribution to the
academic and business world. I am grateful for their time, wisdom, and friendship.
Table of Contents
List of Tables .......................................................................................................................v

List of Figures .................................................................................................................... vi

Section 1: Foundation of the Study ......................................................................................1

Background of the Problem ...........................................................................................2

Problem Statement .........................................................................................................3

Purpose Statement ..........................................................................................................3

Nature of the Study ........................................................................................................4

Research Question .........................................................................................................5

Interview Questions ................................................................................................ 6

Conceptual Framework ..................................................................................................7

Definition of Terms ........................................................................................................8

Assumptions, Limitations, and Delimitations ................................................................9

Assumptions .......................................................................................................... 10

Limitations ............................................................................................................ 10

Delimitations ......................................................................................................... 11

Significance of the Study .............................................................................................11

Contribution to Business Practice ......................................................................... 11

Implications for Social Change ............................................................................. 12

A Review of the Professional and Academic Literature ..............................................13

Airport Competition .............................................................................................. 16

Performance Management .................................................................................... 22

i
Service Quality ...................................................................................................... 26

Consumer Behavior .............................................................................................. 32

Strategic Planning ................................................................................................. 37

Transition and Summary ..............................................................................................41

Section 2: The Project ........................................................................................................42

Purpose Statement ........................................................................................................42

Role of the Researcher .................................................................................................43

Participants ...................................................................................................................44

Research Method and Design ......................................................................................46

Research Method .................................................................................................. 47

Research Design .................................................................................................... 48

Population and Sampling .............................................................................................49

Ethical Research ...........................................................................................................51

Data Collection Instruments ........................................................................................52

Data Collection Technique ..........................................................................................53

Data Organization Techniques .....................................................................................56

Data Analysis ...............................................................................................................57

Reliability and Validity ................................................................................................60

Dependability ........................................................................................................ 60

Creditability .......................................................................................................... 61

Transferability ....................................................................................................... 62

Confirmability ....................................................................................................... 63

ii
Data Saturation ...................................................................................................... 63

Transition and Summary ..............................................................................................64

Section 3: Application to Professional Practice and Implications for Change ..................65

Overview of Study .......................................................................................................65

Presentation of the Findings .........................................................................................70

Interview Question 1 ............................................................................................. 71

Interview Question 2 ............................................................................................. 73

Interview Question 3 ............................................................................................. 74

Interview Question 4 ............................................................................................. 76

Interview Question 5 ............................................................................................. 77

Interview Question 6 ............................................................................................. 79

Interview Question 7 ............................................................................................. 80

Interview Question 8 ............................................................................................. 82

Interview Questions 9 and 10 ............................................................................... 83

Applications to Professional Practice ..........................................................................85

Relevance to Concessions ..................................................................................... 86

Relevance to Airports ........................................................................................... 87

Relevance to Passengers ....................................................................................... 88

Implications for Social Change ....................................................................................89

Recommendations for Action ......................................................................................90

Recommendations for Further Research ......................................................................92

Reflections ...................................................................................................................94

iii