Airline Retailing Market

Description

The airline retailing market is anticipated to grow from US$ 24.95 billion in 2023 to US$ 40.77 billion by 2031, reflecting a compound annual growth rate (CAGR) of 7.88% during the period from 2031 to 2031. A significant trend in the market is the shift from desktop to mobile, voice, and automated systems.

Analysis of the Airline Retailing Market

Retailing is transforming the way travel is purchased. In the broader retail landscape, companies have adopted sophisticated merchandising strategies to better cater to their customers. Airlines are also exploring new travel service offerings to enhance passenger value and improve profitability. Airline retailing not only increases revenue for airlines but also boosts customer satisfaction. Airlines provide retail services in two primary modes: pre-boarding and post-boarding. While some airlines offer both options, others may focus on just one.

Overview of the Airline Retailing Market

Currently, many airlines engage in both pre-boarding and post-boarding retail sales. The pre-boarding segment has been the market leader in recent years and is expected to continue driving growth in the airline retailing sector. This shift is partly due to some airlines eliminating in-flight merchandising across their fleets, leading to a greater focus on pre-boarding sales. Numerous airlines operate their own retail brands with extensive product offerings. For instance, Singapore Airlines' KrisShop Pte. Ltd. features a wide array of products including perfumes, bags, electronics, watches, and wines & spirits. Similarly, British Airways operates the High Life Shop, which also boasts a large selection of products. Airlines without in-house retail brands often partner with external retailers.

Strategic Insights

Drivers and Opportunities in the Airline Retailing Market

Growing Demand for Enhanced Customer Experience

The airline industry is highly competitive, with significant operational costs and seasonal demand fluctuations. As the number of airlines increases, companies are seeking ways to differentiate themselves in the market. To achieve this, airlines are concentrating on improving their services to enhance customer satisfaction.

Advancements in technology and customer insights are creating new opportunities for enhancing customer experiences. The use of customer intelligence is opening up fresh avenues for airline retailing. Airlines have a captive audience and extensive customer data, which can be leveraged through digital applications to create engaging in-flight retail experiences. Many airlines are still learning how to optimize retail opportunities, and by hiring external retail experts, they are enhancing their retail strategies. The application of big data is also influencing airline retail, optimizing customer value and experiences. The push for advanced technologies and the rising demand for improved customer experiences are significant factors propelling the airline retail market.

The Importance of Intelligent Technology Infrastructure for Vendors

To thrive in a customer-focused environment, airlines are prioritizing the implementation of intelligent retail solutions, which is generating demand for advanced technology infrastructure. This infrastructure integrates artificial intelligence (AI), machine learning (ML), sophisticated operations-research (OR) models, and customer data to yield valuable insights. Such data allows airlines to identify, analyze, and forecast consumer behavior.

Intelligent technology also facilitates departmental coordination, accelerates schedule deployment to boost revenue and minimize recommendation costs, automates fare monitoring and analysis, delivers personalized flight-plus-ancillary bundled offers, and provides pricing recommendations that adapt to market fluctuations, ensuring consistent personalized services across all channels.

Segmentation Analysis of the Airline Retailing Market Report

Key segments contributing to the airline retailing market analysis include retail type, shopping type, and carrier type.

The market is segmented by retail type into pre-boarding and post-boarding, with the pre-boarding segment holding a larger share in 2024.
By shopping type, the market is divided into accessories, alcohol, beauty products, merchandise, and others, with merchandise leading in market share in 2024.
Carrier type segmentation includes full-service carriers and low-cost carriers, with full-service carriers dominating the market in 2024.

Geographical Analysis of the Airline Retailing Market Share

The geographical scope of the airline retailing market report is categorized into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.

In 2024, Asia Pacific led the market, followed by North America and Europe. Asia Pacific is also projected to experience the highest CAGR in the coming years, with China being the dominant player in the region's airline retailing market. The Asia Pacific region includes rapidly growing economies like China and India, while Japan stands out as a technologically advanced nation, fostering the development and deployment of IoT/smart solutions. Additionally, emerging economies in Asia, such as South Korea, Taiwan, and Singapore, are witnessing growth in technology and smart trends, further driving the expansion of various services. The rapid economic growth in these developing nations has resulted in increased employment rates and higher disposable incomes, enabling a larger middle and upper-middle class to afford luxury services like air travel. Consequently, there has been a notable rise in air travel among passengers in these countries.

Scope of the Airline Retailing Market Report

Recent Developments in the Airline Retailing Market

The airline retailing market is assessed through qualitative and quantitative data collected from primary and secondary research, including key corporate publications, association data, and databases. Some recent developments in the airline retailing market include:

British Airways' Gatwick-based short-haul subsidiary, BA Euroflyer, has expanded its customer purchase options in Euro Traveller (economy) and introduced new seasonal menus in Club Europe (business class). Collaborating with retail partner Tourvest, the airline has enhanced its onboard offerings, allowing customers to buy fresh food items like Tom Kerridge Chicken Coronation sandwiches and Sweet & Spicy Falafel wraps during the flight without pre-ordering, alongside beverages like Jimmy's Iced Coffee and Punchy soft drinks. (Source: British Airways, Press Release, Apr 2023)
Qatar Airways has introduced new menu items onboard sourced from local organic farms in Qatar, available for passengers traveling from Doha until March 2024. (Source: Qatar Airways, Press Release, Nov 2023)

Coverage and Deliverables of the Airline Retailing Market Report

The report titled "Airline Retailing Market Size and Forecast (2021-2031)" provides a comprehensive analysis of the market, covering the following areas:

Market size and forecast for airline retailing at global, regional, and country levels across all key segments.
Trends and dynamics in the airline retailing market, including drivers, restraints, and key opportunities.
A detailed analysis using Porter's five forces framework.
Insights into key market trends, global and regional frameworks, major players, regulations, and recent developments in the airline retailing market.
An overview of the industry landscape and competition analysis, including market concentration, heat map analysis, prominent players, and recent developments.
In-depth company profiles of key players in the market.

Product Code: TIPRE00006366

1. Introduction

1.1 Scope of the Study
1.2 The Insight Partners Research Report Guidance
1.3 Market segmentation

2. Key Takeaways

3. Research Methodology

3.1 Coverage
3.2 Secondary Research
3.3 Primary Research

4. Airline Retailing Market Landscape

4.1 Market Overview
4.2 Ecosystem Analysis
4.3 PEST Analysis
- 4.3.1 North America and PEST Analysis
- 4.3.2 Europe and PEST Analysis
- 4.3.3 Asia-Pacific and PEST Analysis
- 4.3.4 Middle East and Africa and PEST Analysis
- 4.3.5 South America and PEST Analysis

5. Airline Retailing Market and Key Industry Dynamics

5.1 Key Market Drivers
- 5.1.1 Increasing Number of Air Travellers is Fuelling the Airline Retailing Market
- 5.1.2 Increasing Demand for Enhanced Customer Experience
5.2 Key Market Restraints
- 5.2.1 Access to Inventory In and Array of Data Real-Time
5.3 Key Market Opportunities
- 5.3.1 Need for Intelligent Technology Infrastructure is a Key Opportunity for Vendors
5.4 Future Trends
- 5.4.1 Moving Trend From Desktop to Mobile, Voice, and Bots
5.5 Impact Analysis of Drivers And Restraints

6. Airline Retailing Market and Global Market Analysis

6.1 Global Airline Retailing Market Overview
6.2 Global Airline Retailing Market Forecast And Analysis
6.3 Market Positioning - 2018

7. Airline Retailing Market and By Retail Type

7.1 Overview
7.2 Airline Retailing Market Breakdown, by Retail Type, 2018 and 2031
7.3 Pre-Boarding
- 7.3.1 Overview
- 7.3.2 Pre-Boarding Market Revenue and Forecasts to 2031 (US$ Mn)
7.4 Post-Boarding
- 7.4.1 Overview
- 7.4.2 Post-Boarding Market Revenue and Forecasts to 2031 (US$ Mn)

8. Airline Retailing Market Revenue and Forecasts To 2031and Shopping Type

8.1 Overview
8.2 Global Airline Retailing Market Breakdown, By Shopping Type, 2018 and 2031
8.3 Accessories Market
- 8.3.1 Overview
- 8.3.2 Accessories Market Forecast and Analysis
8.4 Alcohol Market
- 8.4.1 Overview
- 8.4.2 Alcohol Market Forecast and Analysis
8.5 Beauty Products Market
- 8.5.1 Overview
- 8.5.2 Beauty Products Market Forecast and Analysis
8.6 Merchandise Market
- 8.6.1 Overview
- 8.6.2 Merchandise Market Forecast and Analysis
8.7 Others Market
- 8.7.1 Overview
- 8.7.2 Others Market Forecast and Analysis

9. Airline Retailing Market Revenue and Forecasts To 2031and Carrier Type

9.1 Overview
9.2 Global Airline Retailing Market Breakdown, By Carrier Type, 2018 and 2031
9.3 Full Service Carrier Market
- 9.3.1 Overview
- 9.3.2 Full Service Carrier Market Forecast and Analysis
9.4 Low Cost Carrier Market
- 9.4.1 Overview
- 9.4.2 Low Cost Carrier Market Forecast and Analysis

10. Airline Retailing Market and Geographical Analysis

10.1 Overview
10.2 North America Airline Retailing Market Revenue and Forecasts to 2031
- 10.2.1 Overview
- 10.2.2 North America Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
- 10.2.3 North America Airline Retailing Market Breakdown by Retail Type
- 10.2.4 North America Airline Retailing Market Breakdown by Shopping Type
- 10.2.5 North America Airline Retailing Market Breakdown by Carrier Type
- 10.2.6 North America Airline Retailing Market Breakdown by Key Countries
  - 10.2.6.1 US Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.2.6.1.1 US Airline Retailing Market Breakdown by Retail Type
    - 10.2.6.1.2 US Airline Retailing Market Breakdown by Shopping Type
    - 10.2.6.1.3 US Airline Retailing Market Breakdown by Carrier Type
  - 10.2.6.2 Canada Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.2.6.2.1 Canada Airline Retailing Market Breakdown by Retail Type
    - 10.2.6.2.2 Canada Airline Retailing Market Breakdown by Shopping Type
    - 10.2.6.2.3 Canada Airline Retailing Market Breakdown by Carrier Type
  - 10.2.6.3 Mexico Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.2.6.3.1 Mexico Airline Retailing Market Breakdown by Retail Type
    - 10.2.6.3.2 Mexico Airline Retailing Market Breakdown by Shopping Type
    - 10.2.6.3.3 Mexico Airline Retailing Market Breakdown by Carrier Type
10.3 Europe Airline Retailing Market Revenue and Forecasts To 2031
- 10.3.1 Overview
- 10.3.2 Europe Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
- 10.3.3 Europe Airline Retailing Market Breakdown by Retail Type
- 10.3.4 Europe Airline Retailing Market Breakdown by Shopping Type
- 10.3.5 Europe Airline Retailing Market Breakdown by Carrier Type
- 10.3.6 Europe Airline Retailing Market Breakdown, by Key Countries
  - 10.3.6.1 Germany Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.3.6.1.1 Germany Airline Retailing Market Breakdown by Retail Type
    - 10.3.6.1.2 Germany Airline Retailing Market Breakdown by Shopping Type
    - 10.3.6.1.3 Germany Airline Retailing Market Breakdown by Carrier Type
  - 10.3.6.2 France Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.3.6.2.1 France Airline Retailing Market Breakdown by Retail Type
    - 10.3.6.2.2 France Airline Retailing Market Breakdown by Shopping Type
    - 10.3.6.2.3 France Airline Retailing Market Breakdown by Carrier Type
  - 10.3.6.3 Italy Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.3.6.3.1 Italy Airline Retailing Market Breakdown by Retail Type
    - 10.3.6.3.2 Italy Airline Retailing Market Breakdown by Shopping Type
    - 10.3.6.3.3 Italy Airline Retailing Market Breakdown by Carrier Type
  - 10.3.6.4 United Kingdom Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.3.6.4.1 UK Airline Retailing Market Breakdown by Retail Type
    - 10.3.6.4.2 UK Airline Retailing Market Breakdown by Shopping Type
    - 10.3.6.4.3 UK Airline Retailing Market Breakdown by Carrier Type
  - 10.3.6.5 Russia Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.3.6.5.1 Russia Airline Retailing Market Breakdown by Retail Type
    - 10.3.6.5.2 Russia Airline Retailing Market Breakdown by Shopping Type
    - 10.3.6.5.3 Russia Airline Retailing Market Breakdown by Carrier Type
  - 10.3.6.6 Rest of Europe Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.3.6.6.1 Rest of Europe Airline Retailing Market Breakdown by Retail Type
    - 10.3.6.6.2 Rest of Europe Airline Retailing Market Breakdown by Shopping Type
    - 10.3.6.6.3 Rest of Europe Airline Retailing Market Breakdown by Carrier Type
10.4 Asia-Pacific Airline Retailing Market Revenue and Forecasts To 2031
- 10.4.1 Overview
- 10.4.2 Asia-Pacific Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
- 10.4.3 Asia-Pacific Airline Retailing Market Breakdown by Retail Type
- 10.4.4 Asia-Pacific Airline Retailing Market Breakdown by Shopping Type
- 10.4.5 Asia-Pacific Airline Retailing Market Breakdown by Carrier Type
- 10.4.6 Asia-Pacific Airline Retailing Market Breakdown, by Key Countries
  - 10.4.6.1 Australia Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.4.6.1.1 Australia Airline Retailing Market Breakdown by Retail Type
    - 10.4.6.1.2 Australia Airline Retailing Market Breakdown by Shopping Type
    - 10.4.6.1.3 Australia Airline Retailing Market Breakdown by Carrier Type
  - 10.4.6.2 China Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.4.6.2.1 China Airline Retailing Market Breakdown by Retail Type
    - 10.4.6.2.2 China Airline Retailing Market Breakdown by Shopping Type
    - 10.4.6.2.3 China Airline Retailing Market Breakdown by Carrier Type
  - 10.4.6.3 India Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.4.6.3.1 India Airline Retailing Market Breakdown by Retail Type
    - 10.4.6.3.2 India Airline Retailing Market Breakdown by Shopping Type
    - 10.4.6.3.3 India Airline Retailing Market Breakdown by Carrier Type
  - 10.4.6.4 Japan Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.4.6.4.1 Japan Airline Retailing Market Breakdown by Retail Type
    - 10.4.6.4.2 Japan Airline Retailing Market Breakdown by Shopping Type
    - 10.4.6.4.3 Japan Airline Retailing Market Breakdown by Carrier Type
  - 10.4.6.5 South Korea Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.4.6.5.1 South Korea Airline Retailing Market Breakdown by Retail Type
    - 10.4.6.5.2 South Korea Airline Retailing Market Breakdown by Shopping Type
    - 10.4.6.5.3 South Korea Airline Retailing Market Breakdown by Carrier Type
  - 10.4.6.6 Rest of APAC Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.4.6.6.1 Rest of APAC Airline Retailing Market Breakdown by Retail Type
    - 10.4.6.6.2 Rest of APAC Airline Retailing Market Breakdown by Shopping Type
    - 10.4.6.6.3 Rest of APAC Airline Retailing Market Breakdown by Carrier Type
10.5 Middle East and Africa Airline Retailing Market Revenue and Forecasts To 2031
- 10.5.1 Overview
- 10.5.2 Middle East and Africa Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
- 10.5.3 Middle East and Africa Airline Retailing Market Breakdown by Retail Type
- 10.5.4 Middle East and Africa Airline Retailing Market Breakdown by Shopping Type
- 10.5.5 Middle East and Africa Airline Retailing Market Breakdown by Carrier Type
- 10.5.6 Middle East and Africa Airline Retailing Market Breakdown, by Key Countries
  - 10.5.6.1 South Africa Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.5.6.1.1 South Africa Airline Retailing Market Breakdown by Retail Type
    - 10.5.6.1.2 South Africa Airline Retailing Market Breakdown by Shopping Type
    - 10.5.6.1.3 South Africa Airline Retailing Market Breakdown by Carrier Type
  - 10.5.6.2 Saudi Arabia Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.5.6.2.1 Saudi Arabia Airline Retailing Market Breakdown by Retail Type
    - 10.5.6.2.2 Saudi Arabia Airline Retailing Market Breakdown by Shopping Type
    - 10.5.6.2.3 Saudi Arabia Airline Retailing Market Breakdown by Carrier Type
  - 10.5.6.3 UAE Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.5.6.3.1 UAE Airline Retailing Market Breakdown by Retail Type
    - 10.5.6.3.2 UAE Airline Retailing Market Breakdown by Shopping Type
    - 10.5.6.3.3 UAE Airline Retailing Market Breakdown by Carrier Type
  - 10.5.6.4 Rest of Middle East and Africa Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.5.6.4.1 Rest of Middle East and Africa Airline Retailing Market Breakdown by Retail Type
    - 10.5.6.4.2 Rest of Middle East and Africa Airline Retailing Market Breakdown by Shopping Type
    - 10.5.6.4.3 Rest of Middle East and Africa Airline Retailing Market Breakdown by Carrier Type
10.6 South America Airline Retailing Market Revenue and Forecasts To 2031
- 10.6.1 Overview
- 10.6.2 South America Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
- 10.6.3 South America Airline Retailing Market Breakdown by Retail Type
- 10.6.4 South America Airline Retailing Market Breakdown by Shopping Type
- 10.6.5 South America Airline Retailing Market Breakdown by Carrier Type
- 10.6.6 South America Airline Retailing Market Breakdown, by Key Countries
  - 10.6.6.1 Brazil Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.6.6.1.1 Brazil Airline Retailing Market Breakdown by Retail Type
    - 10.6.6.1.2 Brazil Airline Retailing Market Breakdown by Shopping Type
    - 10.6.6.1.3 Brazil Airline Retailing Market Breakdown by Carrier Type
  - 10.6.6.2 Rest of South America Airline Retailing Market Revenue and Forecasts to 2031 (US$ Mn)
    - 10.6.6.2.1 Rest of South America Airline Retailing Market Breakdown by Retail Type
    - 10.6.6.2.2 Rest of South America Airline Retailing Market Breakdown by Shopping Type
    - 10.6.6.2.3 Rest of South America Airline Retailing Market Breakdown by Carrier Type

11. Airline Retailing Market - Industry Landscape

11.1 Market Initiative
11.2 New Development

12. Company Profiles

12.1 AIR FRANCE/ KLM
- 12.1.1 Key Facts
- 12.1.2 Business Description
- 12.1.3 Products and Services
- 12.1.4 Financial Overview
- 12.1.5 SWOT Analysis
- 12.1.6 Key Developments
12.2 AirAsia Group Berhad
- 12.2.1 Key Facts
- 12.2.2 Business Description
- 12.2.3 Products and Services
- 12.2.4 Financial Overview
- 12.2.5 SWOT Analysis
- 12.2.6 Key Developments
12.3 British Airways Plc
- 12.3.1 Key Facts
- 12.3.2 Business Description
- 12.3.3 Products and Services
- 12.3.4 Financial Overview
- 12.3.5 SWOT Analysis
- 12.3.6 Key Developments
12.4 Deutsche Lufthansa AG
- 12.4.1 Key Facts
- 12.4.2 Business Description
- 12.4.3 Products and Services
- 12.4.4 Financial Overview
- 12.4.5 SWOT Analysis
- 12.4.6 Key Developments
12.5 Easy Jet PLC
- 12.5.1 Key Facts
- 12.5.2 Business Description
- 12.5.3 Products and Services
- 12.5.4 Financial Overview
- 12.5.5 SWOT Analysis
- 12.5.6 Key Developments
12.6 Korean Air Lines Co., Ltd
- 12.6.1 Key Facts
- 12.6.2 Business Description
- 12.6.3 Products and Services
- 12.6.4 Financial Overview
- 12.6.5 SWOT Analysis
- 12.6.6 Key Developments
12.7 Qantas Airways Limited
- 12.7.1 Key Facts
- 12.7.2 Business Description
- 12.7.3 Products and Services
- 12.7.4 Financial Overview
- 12.7.5 SWOT Analysis
- 12.7.6 Key Developments
12.8 Singapore Airlines Limited
- 12.8.1 Key Facts
- 12.8.2 Business Description
- 12.8.3 Products and Services
- 12.8.4 Financial Overview
- 12.8.5 SWOT Analysis
- 12.8.6 Key Developments
12.9 Thai Airways International Public Co., Ltd
- 12.9.1 Key Facts
- 12.9.2 Business Description
- 12.9.3 Products and Services
- 12.9.4 Financial Overview
- 12.9.5 SWOT Analysis
- 12.9.6 Key Developments
12.10 The Emirates Group
- 12.10.1 Key Facts
- 12.10.2 Business Description
- 12.10.3 Products and Services
- 12.10.4 Financial Overview
- 12.10.5 SWOT Analysis
- 12.10.6 Key Developments

13. Appendix

13.1 About The Insight Partners
13.2 Glossary of Terms