Why Are Airports Such a Profitable Place to Have a Retail

question 74

Multiple Choice

Why are airports such a profitable place to have a retail business?

• A) Airport leases are affordable and short-term.
• B) Tourists find unique stores at airport not available to them at other shopping centers.
• C) Travelers tend to carry more money than a traditional shopper.
• D) Changes in security have encouraged travelers to arrive earlier and make more purchases after they go through security.
• E) Airport retailers can pay employees lesser wages than what they pay at other shopping centers.

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Definitions:

Inflation-Adjusted

Inflation-adjusted refers to financial figures that have been modified to account for the effects of inflation, providing a more accurate comparison over time.

Nominal Rate

The interest rate stated on a loan or financial product, not adjusted for inflation, representing the face value of the interest charged or earned.

Real Rate

The interest rate adjusted for inflation, representing the real cost of borrowing or the true return on investment, removing the inflationary impact.

Discounts

Reductions from the regular price of goods or services, often used as a strategy to increase demand or reward customers.