Programme overview
Introduction:
Travel retail and duty free management, covering airport concessions and spend per passenger, is a 5-day course for airport commercial, concession and retail operator teams that ends with a Concession and Category Plan for a case new terminal. Terminals lose commercial income when concessions are tendered on weak guarantees, shops sit off the main passenger flow, category mix ignores the passenger profile and bonded stock is not reconciled. Nominees already manage concessions, categories or shop teams and learn through a modelling build on passenger, sales and space data. CoreConcept Training Center delivers this travel retail course.
Course Objectives:
- Map the travel retail channel and passenger journey and set a baseline of penetration, average transaction value and spend per passenger
- Compare concession models and prepare tender documents, evaluation criteria and bid scoring for retail lots
- Set minimum annual guarantees and revenue share tiers that balance grantor income with operator viability
- Allocate terminal space and category and brand mix to passenger flow, passenger profile and sales per square metre
- Apply bonded stock, point-of-sale allowance and concession sales audit controls, and plan pricing, pre-order, promotions and staffing to lift conversion
- Build a Concession and Category Plan for a new terminal with a financial model and sensitivity tests
Target Audience:
- Staff responsible for non-aeronautical retail income and concession performance at an airport
- Staff responsible for retail concession tenders, agreements and grantor reporting
- Staff responsible for running duty free and travel retail shops in departure, arrival and transit zones
- Staff responsible for range, brand mix and pricing decisions in the travel channel
- Staff responsible for bonded inventory, stock reconciliation and concession sales audits
Course Outline:
Day 1: Travel Retail Channel, Passenger Journey and Commercial Baseline
- Channel Map Separating Duty Free, Duty Paid and Tax-Free
- Departure, Arrival and Transit Passenger Journey Touchpoint Mapping
- Passenger Profile Segmentation by Nationality Mix, Route and Cabin
- Airside Dwell Time Analysis From Security Exit to Gate
- Baseline Scorecard for Penetration, Transaction Value and Spend per Passenger
Day 2: Concession Models, Tenders and Commercial Terms
- Concession Model Options From Master Concession to Category Lots
- Concession Tender Documents, Evaluation Criteria and Bid Scoring Matrix
- Minimum Annual Guarantee Setting per Passenger and Ratchet Rules
- Revenue Share Tiers by Category and Sales Band
- Concession Agreement Clauses for Capital Investment, Term and Handback
Day 3: Terminal Space Planning, Category Mix and Pricing
- Walk-Through Store Layout Sized to Peak Passenger Flow
- Category Space Allocation Using Sales per Square Metre
- Core Category Roles for Fragrance, Cosmetics, Confectionery and Tobacco
- Luxury Boutique and Local Product Brand Mix Planning
- Price Benchmarking Against High Street With Savings Communication
Day 4: Bonded Stock, Audit Controls, Promotions and Sales Conversion
- Bonded Warehouse Receipt, Transfer and Stock Reconciliation Controls
- Boarding Pass Capture and Allowance Checks at Point of Sale
- Concession Sales Audit and Turnover Reporting to the Grantor
- Digital Pre-Order, Reserve and Collect and Gate Promotions
- Shift Rostering to Departure Banks and Conversion Coaching
Day 5: Modelling Build of the Concession and Category Plan for a New Terminal
- Case New Terminal Brief With Passenger Forecast and Floor Plan
- Concession Package Design and MAG Plus Revenue Share Model
- Category Space and Brand Mix Allocation for the Case Terminal
- Spend per Passenger and Penetration Forecast Sensitivity Testing
- Concession and Category Plan Completion and Grantor Panel Review
Skills You Will Gain:
- Passenger Journey Mapping
- Concession Tender Evaluation
- Minimum Annual Guarantee Modelling
- Revenue Share Structuring
- Terminal Space Allocation
- Travel Retail Category Planning
- Bonded Stock Control
- Sales Conversion Analysis
Why Attend This Course:
- Present a Concession and Category Plan for a case new terminal to the airport commercial lead and the concession evaluation committee
- Decide which concession package, guarantee level and revenue share tier to offer or bid, and which categories earn space beside the main passenger flow
- Avoid income lost to guarantees set above passenger reality, unreconciled bonded stock and shops placed away from the passenger flow
- Pass on tender scoring matrices, spend per passenger dashboards and stock reconciliation checklists to commercial and operator colleagues
Conclusion:
Back at work, the participant hands the Concession and Category Plan to the airport commercial lead, the tender committee and the operator's management. They use it to set the concession packages and guarantee terms for the next tender, agree space and category allocation with the operator and fix the audit routine for bonded stock and sales reporting. After the first trading quarter in the terminal, the team should compare penetration, spend per passenger, sales per square metre and guarantee cover against the plan and adjust the category mix, staffing or promotions where passenger behaviour differs from the forecast.
Frequently Asked Questions (FAQ):
What should participants know before the travel retail and duty free management course?
Participants should already work in airport commercial, concession or travel retail operator roles and read basic sales and passenger reports. Bringing anonymised passenger numbers, a shop sales report or a concession agreement summary helps them apply the modelling build to their own terminal.
How does travel retail and duty free management differ from a general retail store management course?
It concentrates on what is specific to the airport channel: concession tenders, guarantees and revenue share, passenger flow, bonded stock and spend per passenger. High street store routines and shopping centre leasing are touched on only where they help explain terminal shops.
How do airport concessions in travel retail and duty free combine a minimum annual guarantee with revenue share?
The operator commonly pays the greater of a fixed minimum annual guarantee or a percentage of sales. The guarantee protects the grantor's income when traffic falls, while the revenue share lets the grantor share in growth, so both are set from realistic passenger and spend forecasts.
What do participants take back from the travel retail and duty free management course?
Participants take back a Concession and Category Plan for a case new terminal, with concession packages, a guarantee and revenue share model, category space and brand mix, control routines and spend per passenger forecasts they can adapt to their own airport.