Sunday, December 18, 2011

Making Money at Miami International Airport: A Case Study

Luggage Wrapping at Miami Intl Airport (Miami Herald photo)
Often, the simple, everyday things is where money -- a great deal of money -- is made. I'm not talking about underworld activities, or recondite algorithmic schemes, but just plain vanilla commercial transactions, objects, and services. These largely anonymous, occasionally lucrative activities -- and the stories about them -- are quite illuminating windows into human motivation.

Today's online edition of the Miami Herald offers insights into just such a situation. The story involves the luggage-wrap business at Miami International Airport (MIA). The business is succinctly characterized by Herald journalist Martha Brannigan: "The luggage-wrap business, on its face, is simple: AT MIA's passenger check-in areas, the bags are machine wrapped in stretchy plastic that protects against pilfering and damage and deters anyone from inserting anything."

It turns out the luggage-wrap deal at MIA is quite valuable for both the service provider and for the counterparty. Of course, in the world of politically connected contracts, such as for various services at local airports, there are "competing interests" in play. The Herald story details these commercial conflicts, the scale of money involved, and the various interests' posturing.

The mix of business acumen, shifting alliances, financial gain, and plenty of human strength and weakness, can seem dry. Just add a little of your own imagination, and you'll find you have an interesting story just in time for the holiday travel season.

Finally, demand for luggage wrap is far more widespread outside the United States. For a further look at this phenomenon, go to Mark Ashley's Upgrade: Travel Better blog and his post on this issue. The reader comments offer some further, and useful, perspectives on the pros and cons of luggage wrapping.

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