After a major renovation of Terminal B and rave passenger reviews, Logan Airport’s master concessionaire BAA Boston has reported a 52% increase in spend per pax.
Spend per passenger (PSR) rose from US$7.42 at the start of the project to US$11.25 by the end of 2008.
The project resulted in 20 new stores including a Duty Free Americas shop, a Sunglass Hut outlet and a Techshowcase electronics store.
The model is sound. The assumptions have been stress-tested. And the project is still harder to deliver than the numbers suggested. The problem isn’t the modelling. It’s what the model assumes about the world.
Luxury has always communicated something beyond the object or experience itself. Status, taste, access, position within a hierarchy that does not need to be made explicit to be understood. These signals are embedded in brands, materials, locations, and the particular...
Luxury has always operated by a different logic than the rest of the market. Where most consumption responds to price, luxury responds to meaning. The relationship between cost and demand runs in directions that conventional economics finds awkward. Price increases...