Customer perception on Bandaranaike International Airport duty free segment

Abstract

Nowadays, airport earns more profit from nonaeronautical activities than aeronautical activities. BIA is also same. Duty free shops' sales contribute more revenue than other non aeronautical activities. Due to that, many companies find opportunities on duty-free market in airports for establishing and expanding their business. Before invest on duty free shops it is important to understand current scenario of the segment. It will help investors to decide on investments. To identify that, best way is to address the passengers. In this research passenger perception about BIA Duty Free segment is explored. Questionnaire was utilized to collect data. Sample consisted 100 passengers including arrival,departure and transit. Data was analyzed by descriptive statistics and factor analysis. Layout factors, product satisfaction and service level, were identified as the main factors that help to identify customer perception at BIA duty free shops and to increase passenger attraction. Therefore this research will support the airport management to develop and improve an effective and profitable strategy for duty free segment which match the needs and expectations of the passengers.