Product details

Aer Rianta is a semi-state company responsible for managing the Republic of Ireland''s three state airports. This case is concerned with the marketing challenge facing Aer Rianta when the proposed abolition of intra-EU duty free sales becomes a reality. Dublin''s Airport''s duty free shops form the Group''s most profitable business unit. Currently, Aer Rianta is heavily dependent on the revenue from duty free sales and its differential advantage vis-a-vis down-town/high street stores is mainly price based. With the erosion of this advantage, the company will need to reposition itself in the eyes of the travelling public. The litmus test for airport retailing at Dublin will be management''s ability to develop a strategy that encourages passengers to spend freely, despite the absence of a strong price differential.