The Airline Retailing Market is expected to reach $27.66 billion by the year 2027 from $7.25 billion in 2018 at a CAGR of 16.4% during forecast period 2019 to 2027.
The idea of retailing is driving a revolution in how travel is purchased. The airline industry has exhibited themselves on high-street retailers and their classy merchandising techniques to add value to the passenger and to enhance profitability. Retailers across the world have developed high-level retailing techniques to better cater to their customers. Retailers handle shoppers through their stores, which can be online and offline in a way that boosts them to add products to their real or virtual shopping carts. This has become an opportunity for the airline industry to sell the customers beyond the seat.
Benefits of airline retailing help customers to take advantage of the on-board internet connectivity by using their own devices for on-board entertainment and to order refreshments or products during the flight. On-board connectivity opens up a host of extra retail offerings such as customer service delivery, destination inventory, and mobile transactions.
The demand for improved connectivity provides numerous possibilities. The passengers can able to browse the internet on-board and can purchase their requirements. Airlines are increasingly teaming up with providers such as Amazon, Inc. to offer on-demand streaming services during in-flight. Hence, on-board internet connectivity opens up opportunities for the airline industry which drives the Airline Retailing Market during the forecast period.
Many well-known, as well as small local companies, are present in the market that are engaged in provisioning a diversified portfolio for their customers. The larger firms are adopting the strategy of acquiring small firms to enhance its product portfolio and expand its footprint in different geographies. Few of the significant strategy and business planning from the industry are mentioned below:
|2019||Lagardère Travel Retail AirAsia’s OurShop announced a strategic partnership which would enable the customers to pre-order and collect items from arrival and departure points.||Asia-Pacific|
|2019||Air France teamed up with Saint James||Europe|
|2018||KrisShop introduced 60-Minute advanced Pre-Order for Duty-Free Merchandise. Accursing to this the customers would be able to preorder, duty-free goods up to 60 minutes prior to their flight departure out of Singapore.||Asia-Pacific|