Global airport retail to reach 41.6 billion dollars by 2027
After two years of stagnation due to Covid-19, the skies are open once again for travellers, a boost to airport retail and tax free shopping. In 2021 during lockdowns and travel restrictions the global airport retail market was valued at 20.1 billion dollars according to data from Research and Market. These figures are expected to more than double to 41.6 billion dollars by 2027.
Airport Retailing Market Trends
The flourishing travel and tourism industry on account of rising bleisure travel represents one of the key factors strengthening the growth of the market. Apart from this, a significant increase in the time spent by passengers at airports due to early check-in times for security and operational concerns has positively influenced the demand for airport retailing worldwide. This can also be attributed to the surging disposable incomes and changing lifestyles of individuals around the world.
Furthermore, as retail stores at airports are duty-free, which is exempted payment of local or national taxes, they allow travelers to purchase available products at a relatively cheaper rate. This, in confluence with numerous initiates undertaken by brands to customize their offering and improve the overall shopping experience of travellers, is creating a favourable market outlook.
Moreover, brands are engaging in extensive research activities to collect data related to location, flight schedules, and the number of passengers in the flight. These activities assist brands in keeping check of warehouses, adopting price skimming strategies, and conducting promotional activities to meet the preferences of the customer base. Additionally, the market is projected to impel on account of the rising trend of bringing souvenirs while traveling.
A report from Allied Market Research confirms that leading vendors in the airport retailing market are continuing to focus their efforts on providing passengers with a first-rate shopping experience. Market leaders are channeling their efforts on acquiring critical travel data from various airports in order to assess passenger attitudes and behaviour and identify high-spending consumer groups arriving at various airports.
Multi-channel airport shopping
The growing importance of consumer convenience and shopping experience is encouraging airport retailing vendors to provide goods delivery services. For example, airport retailers at Frankfurt Airport provide home delivery services to passengers who purchase goods through the airport’s online shopping platform. By incorporating such online purchasing platforms, airport retailing suppliers are able to provide greater convenience to customers by offering multiple product delivery options.
Due to the increasing growth of the e-commerce industry, market players continue to face challenges in increasing consumer footfall in airports at uncertain and less-discovered tourist destinations. Vendors in the airport retailing market are focusing on unique end-user requirements in order to increase sales at less common airports.
Article source: Allied Market Research "Airport Retailing Market” report; Research and Markets Airport Retailing Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027