London event debates low-cost strategies

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A number of leading airports, retailers and suppliers were present at the Airport Retail Conference 2005, held in London earlier this week

AENA commercial analysis division director Juan Carlos Muria revealed spend per head, for both retail and food and beverage purchases, was 40% higher among low-cost passengers at its Spanish airport than for non low-cost travellers.

The low-cost debate was continued by Cologne Bonn airport real estate director Silke Horemans, who explained that low-cost passengers spend half of their travel budget on shopping and catering, while the ticket price accounts for only 30% of their overall travel spend. Low-cost travellers also have a high dwell time and spend an average period of 75 minutes at the airport.

London Luton airport managing director Paul Kehoe said he has witnessed a dramatic change in passenger profiles in recent years from families travelling on a package holidays to independent passengers using low-cost airlines.

Speakers also discussed how communication and partnership in the industry could be improved. The event, held at the Hilton Heathrow hotel, was organised by Marketing Week.