In 2018, the global airline retailing market was valued at US$ 7.25 billion and is projected to expand at a compound annual growth rate (CAGR) of 16.4% from 2019 to 2027, reaching approximately US$ 27.66 billion by the end of the forecast period.
The pace of operations within the global commercial aviation industry has been on the rise in recent years. This remarkable growth in the commercial aviation sector can be largely attributed to the significant increase in the number of air travelers, encompassing both leisure and business passengers. Airlines worldwide are consistently investing in a growing fleet of aircraft each year. Additionally, airlines are focusing on enhancing their ancillary services to generate more revenue. However, the persistent increase in aviation fuel prices poses a considerable challenge to the operational viability of airlines. To sustain their operational frameworks, both full-service carriers (FSCs) and low-cost carriers (LCCs) have adopted strategies to market a diverse range of products both on-board and at airports.
North America stands out as the leading region in the airline retailing market. This region comprises highly developed nations that are experiencing robust growth in their airline sectors. Airline customers in North America favor seamless and hassle-free shopping experiences, presenting a significant opportunity for airline retailers. With a growing emphasis on enhancing customer service, vendors are actively seeking new technologies and capabilities to provide uninterrupted services to their clientele. The airline retailing market in North America is expected to see substantial growth throughout the forecast period.
The airline industry is also witnessing a surge in travelers from the Asia-Pacific region, with growth rates nearly double those of visitors from the Americas and Europe over the past decade. Vendors are keenly focused on capitalizing on the emerging airline retailing market in the Asia-Pacific area. In China, the influx of travelers is anticipated to increasingly originate from outside the major tier 1 cities, such as Beijing, Shanghai, Guangzhou, and Shenzhen. The growth of the airline retailing market is expected to be significantly influenced by the tier 1 cities in China.
North America is characterized by a high density of airlines and aircraft fleets. The region supports both full-service carriers and low-cost carriers. The governments of the United States and Canada are actively promoting the growth of LCCs to boost the overall revenue of the aviation sector. The U.S. is recognized as one of the most competitive markets for low-cost carriers. Notable North American LCCs include WestJet, Flair Airlines, Interjet, Porter Airlines, Volaris, VivaAerobus, and Air North, among others. The increasing presence of LCCs is driving the adoption of various low-cost airline services, thereby propelling the airline retailing market in North America. The ongoing governmental support for low-cost carriers in the region is having a positive impact on the airline retailing landscape.
The global airline retailing market is categorized based on retail type, shopping type, and carrier type. In terms of retail type, the market is divided into pre-boarding and post-boarding segments. Regarding shopping type, it is further classified into categories such as accessories, alcohol, beauty products, merchandise, and others. By carrier type, the market is split into full-service carriers and low-cost carriers. Geographically, the market is segmented into five regions: North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
Key players in the airline retailing market include well-established companies such as Air France/KLM, AirAsia Group Berhad, British Airways Plc, Deutsche Lufthansa AG, EasyJet PLC, Korean Air Lines Co., Ltd, Qantas Airways Limited, Singapore Airlines Limited, Thai Airways International Public Co., Ltd, and The Emirates Group.
The overall size of the global airline retailing market has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the global airline retailing market. This research also provides an overview and forecast for the airline retailing market based on the various segments identified across global regions. Additionally, primary interviews are conducted with industry participants and experts to validate the data and analysis. Participants typically include industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the airline retailing sector.