The airline retailing market size is projected to reach US$ 40.77 billion by 2031 from US$ 24.08 billion in 2023. The market is expected to register a CAGR of 6.8% during 2023–2031. The moving trend from desktop to mobile, voice, and automated machines is likely to remain a key trend in the market.
Retailing is driving a transformation in how travel is purchased. In the broader sphere, retailers have established advanced merchandising practices to better serve their clients. Also, airlines are discovering new forms of travel services to add value to their passengers’ and enhance profitability. Airline retail helps in boosting airline revenue along with enhancing the level of customer satisfaction. The airlines offer retailing services through two different modes i.e. pre-boarding and post-boarding. Some of the airline companies offer both modes, however, certain airlines offer one of the mentioned modes.
Several airlines offer both pre-boarding retailing sales and post-boarding retailing sales in the current market scenario. The pre-boarding sales segment has dominated the market in recent years and is also anticipated to drive the airline retailing market in the forthcoming years. This is due to the fact that some airlines are terminating in-flight merchandising options from their entire fleet. This is resulting in increased emphasis on the pre-boarding segment. Various airlines have their in-house retailers with significant product lines. For example, Singapore Airline’s in-house retailer KrisShop Pte. Ltd. offers an extensive range of perfumes, bags, electronics, watches, and wine & spirits, among others. Similarly, British Airways High Life Shop is an in-house retailer of British Airways, which offers significantly large product lines. Various airlines with no in-house retailers collaborate with retailers.
The airline sector is a highly competitive market. The operational cost of airlines is very high, and the demand is subject to significant seasonal fluctuations. With the increasing number of airline companies, businesses are looking for alternatives that could help airlines to gain an edge in the competitive market. In order to gain an edge in the market, airline companies are highly focused on enhancing their services for high customer satisfaction.
Advanced technology and customer intelligence are enabling new opportunities for improving customer experiences. The implementation of customer intelligence is enabling new opportunities for airline retail. The airline has a captive audience and extensive customer knowledge, enabled by digital applications, which can be stimulated with smart and entertaining in-flight retail opportunities utilizing emotional momentum. Most of the airlines are on the learning curve when it comes to retail opportunities. With the external recruits, who have experience in retail, airlines are improving their retail performance. Big data utilization is also impacting airline retail and is optimizing customer value and experiences. The introduction of advanced technologies and the increasing demand for enhanced customer experience are significantly driving the airline retail market.
To operate in a customer-centric environment, airlines are focusing on implementing intelligent retail solutions and are creating potential demand for intelligent technology infrastructure. The intelligent technology infrastructure combines artificial intelligence (AI), machine learning (ML), sophisticated operations-research (OR) models, and customer data to provide relevant insights. The customer data enables airlines to identify, analyze, and predict consumer behavior.
Intelligent technology also empowers departments to schedule synchronization, deploy schedules faster to increase revenue and reduce recommendation costs, monitor and analyze fares automatically, deliver persona-based, flight-plus-ancillary bundled offers, provide pricing recommendations that use multi-channel availability and are buffered from abrupt market changes, and provide personalized offers and services that are consistent across all channels.
Key segments that contributed to the derivation of the airline retailing market analysis are retailing type, shopping type, and carrier type.
The geographic scope of the airline retailing market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.
Asia Pacific has dominated the market in 2023 followed by North America and Europe regions. Further, Asia Pacific is also likely to witness highest CAGR in the coming years. China dominated the Asia Pacific airline retailing market in 2023. APAC includes some of the fastest growing world economies such as China and India. Along with that, Japan is the most technologically advanced country in the region giving an opportunity for the development of deployment of IoT/smart solution in the region. Also, emerging economies of Asia such as South Korea, Taiwan, Singapore, and others are experiencing a growth in their technological and smart trend thus, propelling the growth of various services. Furthermore, the developing economies in the APAC region have witnessed exponential growth in their economies in the last few years. This has also led to higher employment percentages, as well as higher disposable incomes with individuals. High disposable incomes has facilitated the middle class and the upper middle class population in the countries to avail for luxurious services such as airplane travel. There has been a marked increase in the number of passengers that travel through flight in these countries.
The regional trends and factors influencing the Airline Retailing Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Airline Retailing Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 24.08 Billion |
| Market Size by 2031 | US$ 40.77 Billion |
| Global CAGR (2023 - 2031) | 6.8% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Retail Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Airline Retailing Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Airline Retailing Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The airline retailing market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the airline retailing market are listed below:
The “Airline Retailing Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
Asia Pacific region dominated the airline retailing market in 2023.
Increasing demand for enhanced customer experience and increasing demand for air travel are some of the factors driving the growth for airline retailing market.
The moving trend from desktop to mobile, voice, and automated machines is one of the major trends of the market.
Air Asia Group, Air France – KLM SA, British Airways Plc, easyJet Plc, Korean Air Lines Co Ltd, Duetsche Lufthansa AG Qantas Airways Limited Singapore Airline Limited Thai Airways International Public Co Ltd, and The Emirates Group are some of the key players profiled under the report.
The estimated value of the airline retailing market by 2031 would be around US$ 40.77 billion.
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