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Airline Retailing Market Emerging trends 2027 | Key Companies Qantas Airways Limited Singapore Airlines Limited, Deutsche Lufthansa AG, Korean Air Lines
Airline Retailing Market
Airline retailing market in global is expected to grow from US$ 7.25 Bn in 2018 to US$ 27.66 Bn by the year 2027. This represents a CAGR of 16.4% from the year 2019 to 2027.
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The major players operating in the market for global airline retailing market Air France/ KLM, AirAsia Group Berhad British Airways Plc, Deutsche Lufthansa AG, Easy Jet PLC, Korean Air Lines Co., Ltd, Qantas Airways Limited Singapore Airlines Limited, Thai Airways International Public Co., Ltd, and The Emirates Group among others.
The airline retail market is witnessing growth through the pre-boarding segment. This is due to the fact that the major airlines are offering an opportunity to the flyers to pre-book their merchandises, accessories, alcohol, and beauty products, among others during ticket booking. The airline customers also have the flexibility to purchase the products any time before their flights depending on the airline’s terms & conditions. The key benefit of the pre-booking of products is that customers can choose the delivery of the product at the airport or on-board. This benefits the passengers by carrying a lesser quantity of the luggage, which further reduces the risk of incurring excess baggage fees.
The post-board retailing segment is experiencing turbulence in the current years, as several well-established full service carriers are ceasing their in-flight duty-free retail segment. This is majorly due to the rising trend of airport shopping and online shopping. To counter the trend of shopping at the airports, various airlines are partnering with retailers, and are offering products at discounted prices. Despite this strategy, multiple airlines are still facing a decline in their on-board retail revenues.
The future of the airline retailing market is prominent attributing to the fact that, several airline companies are introducing advanced technologies to boost their retailing business. The increasing trend of adoption of budding technologies such as artificial intelligence (AI) and analytics into retailing sector ensures the airlines to understand customer preferences. This enables the company to invest new and flexible product offerings, which is foreseen to drive the airline retailing market. Moreover, the increasing number of low cost carriers offering both pre-boarding and post-boarding duty-free shopping opportunities is anticipated to attract a significant percentage of air passengers, thus, catalyzing the growth of airline retailing market.
The global airline retailing market has been derived from market trends and revenue generation factors from five different regions across the globe namely; North America, Europe, Asia Pacific, Middle East, and Africa, and South America. Europe is expected to contribute largest market share by the year 2027.
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