According to the new research report published by The Insight Partners, titled “Airline Retailing Market - Global Analysis and Forecast to 2027”, the global airline retailing market is expected to reach US$ 27.66 Bn by 2027, registering a CAGR of 16.4% during the forecast period 2019-2027.
In 2018, North America the global airline retailing market accounted for the largest share, growing at a CAGR of 11.0%
North America comprises of the US, Canada, and Mexico. North America has a developed aviation market and is the most influential region in the world, and so is its aviation industry. The US has a wide array of airlines with extensively large fleet size connecting across the globe. The federal government is constantly supporting the aviation industry to gain revenues from the market. Pertaining to the continuous support, the industry is experiencing huge growth in aircraft fleet, which is increasing and associated services as the airlines operating in the region are continuously emphasizing on airline retailing services in order to improve the passenger travel experience.
North America is one of the most influential regions in the world, and so is its aviation industry. In the year 2017, the region had primed its contribution to the global airline industry. However, the region is expected to experienced shrinkage in its profitability in 2018 due to the cost pressure pertains to grow. Despite, in the coming years, North America would continue to generate relatively higher profit, contributing to the growth of the global airline industry.
High per capita income of people in the region is driving the growth of the regions aviation sector, so as the airline retailing market across the region. Increasing disposable income especially in the US and Canada along with rising time constraints among the US and Canadian individuals has led the region to witness substantial growth in the demand of post-boarding as well as pre-boarding retailing among the passengers. But the major US airlines namely: American Airlines, United Airlines, and Delta Airlines announced that they are stopping ceasing of their inflight duty-free retailing. This has led to downfall of airline retailing market in the US, which resulted in 10-12 sales on a short-haul flight as well as 30-40 on a wide-body long haul flight. The airline industry in North America is not only growing monetarily but also technologically. The investment in the industry towards technological development is expanding at an exponential rate, where connectivity technologies play a significant role. These advanced technologies play an essential role in airline retailing to booking the items for purchasing of products by using smartphones, and tablets among others. This trend prevails in the North American market for quite a while now and have been already adopted by several airlines individuals of different age groups. The trend has enabled the region to focus on the development of airline retailing which also includes post-boarding shopping as well as pre-boarding shopping option to the passenger.
Among global regions, Asia Pacific is the fastest growing region in the global airline retailing market. The aviation sector in the Asia Pacific region is experiencing stupendous growth in the current scenario. Most of the countries in the region are observing tremendous growth in passenger counts, aircraft fleet, and revenue generation from aeronautical resources as well as non-aeronautical resources. According to International Air Transport Association (IATA), Asia Pacific is anticipated to be maximum revenue-generating region worldwide, attributing to the huge rise in air traffic in countries namely China, India, Singapore, and Japan among others. China is foreseen to outpace the United States by 2024, owing to the stupendous growth in air traffic in the nation. India is expected to displace the United Kingdom to become the third-largest commercial air carriers in the world.
Developing and growing regions such as Middle East and Africa and South America are expected to offer substantial growth opportunities for market players operating in the global airline retailing market.
Key findings of the study:
In order 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 department 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. It is expected that the airline retailing market will witness a considerable demand for intelligent retail solutions during the forecast period.
Some of the key players operating in the global airline retailing market are 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.
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