FlyerTalk Forums - View Single Post - HAL are enhancing T5
View Single Post
Old Aug 27, 2014, 1:48 am
  #79  
jbfield
 
Join Date: Jan 2005
Location: SIN 5 days out of 7
Programs: BD*G, A3*G, BA-S, Accor Gold, IHG Amb
Posts: 5,505
Originally Posted by ginger50
I am not sure I agree with you there. We don't know HAL's business model and so cannot speculate as to how they calculate profit from retail vs profit from customer services. If they get greater profitability from retail than customer services then they will tend to make CS the poor cousin. Witness the crowded nature of the transfer area.... knocking down a few shops and providing more space for passengers would not occur to an organisation fixated on retail rather that what should be their prime role.... getting passengers to and from aircraft.

Other countries are able to sort out their national airport hubs without them being crowded with shops and other stuff irrelevant to the task in hand, and those places have a much more open feel. I would cite HEL, SIN, HKG and KUL as good examples of this.

Personally I detest the stench of ghastly perfume that I am forced to walk through, I resent the fact that HAL force me to go past all of the shops to get to the lounge. I make a point of NOT buying anything there and waiting until I get to a shop that I need, when I need it.

I am sorry, but stuff their shops and their retail plans, if I have to pay more to get to my flight then I would welcome the opportunity!
It could be argued that the crux of the problem is the regulatory regime. HAL's airport fees are regulated and there is a limit to the profit they can make from those (any extra revenue above forecast is given back to the airlines as a discount). Their other stream of revenue is from retail - as that part is not regulated they maximize it. Combine that with ownership from investors who want a return, then the terminal gets stuff with shops to the full.

You're right - other airports haven't developed the same hassle factor as HAL (or GAL...or other former BAA airports) [although some Scandinavian airports are heading that way...like CPH]. I suspect they had a view on global competition more than BAA did in the day (it was a monopoly after all) and focused on passenger experience, including convenience, above retail exposure.
jbfield is offline