Airline Retailing Market Forecast (2024-2031), Size, Share
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.
Airline Retailing Market Analysis
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.
Airline Retailing Market Overview
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.
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Airline Retailing Market: Strategic Insights
Airline Retailing Market
-
CAGR (2023 - 2031)
6.8%
-
Market Size 2023
US$ 24.08 Billion
-
Market Size 2031
US$ 40.77 Billion
Market Dynamics
GROWTH DRIVERS
- Increasing demand for enhanced customer experience
- Increasing demand for air travel
FUTURE TRENDS
- The moving trend from desktop to mobile, voice, and automated machines
OPPORTUNITIES
- Need for Intelligent Technology Infrastructure is a Key Opportunity for Vendors
Key Players
- Air Asia Group
- Air France
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
Retail Type
- Pre-Boarding
- Post-Boarding
Shopping Type
- Accessories
- Alcohol
- Beauty Products
- Merchandise
Carrier Type
- Full Service Carrier
- Low Cost Carrier
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Airline Retailing Market: Strategic Insights
-
CAGR (2023 - 2031)6.8% -
Market Size 2023
US$ 24.08 Billion -
Market Size 2031
US$ 40.77 Billion
Market Dynamics
- Increasing demand for enhanced customer experience
- Increasing demand for air travel
- The moving trend from desktop to mobile, voice, and automated machines
- Need for Intelligent Technology Infrastructure is a Key Opportunity for Vendors
Key Players
- Air Asia Group
- Air France
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
- Pre-Boarding
- Post-Boarding
- Accessories
- Alcohol
- Beauty Products
- Merchandise
- Full Service Carrier
- Low Cost Carrier
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Airline Retailing Market Drivers and Opportunities
Increasing Demand for Enhanced Customer Experience
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.
The need for Intelligent Technology Infrastructure is a Key Opportunity for Vendors
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.
Airline Retailing Market Report Segmentation Analysis
Key segments that contributed to the derivation of the airline retailing market analysis are retailing type, shopping type, and carrier type.
- Based on retail type, the airline retailing market is segmented into pre-boarding and post-boarding. The pre-boarding segment held a larger market share in 2023.
- Based on shopping type, the airline retailing market is segmented into accessories, alcohol, beauty products, merchandise, and others. The merchandise segment held a larger market share in 2023.
- Based on carrier type, the airline retailing market is segmented into full service carrier and low cost carrier. The full-service carrier segment held a larger market share in 2023.
Airline Retailing Market Share Analysis by Geography
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.
Airline Retailing Market Report Scope
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 |
|
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Airline Retailing Market News and Recent Developments
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:
- British Airways’ Gatwick-based short-haul subsidiary, BA Euroflyer, has expanded the options available for customers to purchase in Euro Traveller (economy) and launched new seasonal menus in Club Europe (business class). The airline, working with its retail partner Tourvest, has expanded its onboard offering by introducing new options for customers to purchase during the flight. Customers were previously only able to pre-order fresh food, or purchase ambient snacks during their journey. New options for customers include fresh Tom Kerridge Chicken Coronation sandwiches and Sweet & Spicy Falafel wraps, which can be bought on board without pre-ordering. Customers can pair this with Jimmy’s Iced Coffee or Punchy soft drinks.. (Source: British Airways, Press Release, Apr 2023)
- Qatar Airways introduces new menu items onboard sourced from local organic farms in Qatar. The airline’s latest delicious additions available for passengers travelling from Doha until March 2024. (Source: Qatar Airways, Press Release, Nov 2023)
Airline Retailing Market Report Coverage and Deliverables
The “Airline Retailing Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Airline retailing market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Airline retailing market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed porter’s five forces analysis
- Airline retailing market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the airline retailing market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Retail Type ; Shopping Type ; Carrier Type
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
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.