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Global Aviation Retail Growth Opportunities

Global Aviation Retail Growth Opportunities

  • November 2021
  • 32 pages
  • ID: 6188602
  • Format: PDF
  • Frost & Sullivan

Summary

Table of Contents

Revenue from retail and related activities forms the majority share of non-aeronautical revenue for both airports and airlines. There are significant differences in the retail environment of airports and airlines.

However, some common trends, like new technology implementation and new business models, can be seen across both segments. The COVID-19 pandemic has accelerated the usage of new technologies in almost all markets.

Retailers outside the aviation ecosystem were already using technologies like the Internet of Things (IoT), Big Data, and location-based services.This study examines how their use in the aviation ecosystem is also gaining prominence.

Retail outlets operating out of airports are expected to adopt solutions based on these technologies in the near future. The eCommerce business model has been successfully implemented in the retail sector. Omnichannel retailing, in particular, has proved to be an ideal model for the airport setting. Omnichannel retailing requires stakeholders to form collaborative relationships, which is common among airports and retailers. For customers, this model offers unparalleled personalization. Some airports in the Asia-Pacific and Europe have already utilized this model and achieved great success. Certain external factors have also influenced the retail ecosystem at airports. A region-wise breakdown of the impact of these factors has been provided in this study. This study analyses the impact of new technologies on aviation retail, identifies the new business models being adopted in the segment, and examines trends like privatization and the aerotropolis in detail. Moreover, it covers the latest technological trends prevalent in the adjacent markets and analyzes their feasibility for the aviation retail segment.

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