Everybody hates flight delays, right? Well according to a story in Forbes Magazine, there is one group of people who love the delays because they are seeing increased profits. That would be the folks who run the shops in airports.
“In 1990, only about 30 percent of airport revenue came from retail, parking, concessions and other business partnerships. Most of the money came from landing and cargo fees, hanger charges etc. But in the past few years, a full fifty percent and in some cases 60 % of revenue is coming from non-aeronautical sources.”
In 2005, while airlines lost $10 billion, airports earned $2 billion. Only five US airports out of more than 65 failed to turn a profit.
“Nobody blames Starbucks when their flight is delayed, in fact, they’ll likely buy a latte while they wait. what else is there to do?”
The biggest player in the business is Paradies Group, a family-owned firm based in Atlanta with a 48-years of consecutive growth. Now they have more than 500 stores. Business has never been better in their CNBC and other airport boutiques, where they sell lots of books and clothing to bored, waiting air passengers.
There is even a plan to bring five-star steak house the Palm into airports. Who wants to chow on Chiles when you’ve got enough time to savor a leisurely steak dinner at the terminal while you wait for your delayed flight?