Airport Catering - UK - February 2008

Published by: Mintel International Group Ltd.

Published: Feb. 1, 2008 - 83 Pages

Table of Contents

Issues in the Market

Main issues

Definition

Abbreviations

Market in Brief

Airport catering enjoys boom times

Freshness and healthiness becoming more important

Traditionally dominant companies being challenged

Grab ‘n’ go popular for refuellers

Coffee shop most popular venue

Still some dissatisfaction over price, quality

Plenty of opportunities remain for developing the market

Internal Market Environment

Key points

Passenger numbers on the up

Figure 1: Trends in UK airport passenger numbers, 2002-07

Figure 2: Airport passengers by airport, 2001 and 2007*

Boom times for airports

The profile of airport passengers

Figure 3: Demographic profile of passengers at selected BAA airports

Business and long-haul passengers affect the mix

Increased security at airports

Budget airlines boom

Figure 4: Scheduled passengers carried by main low-cost airlines, 2001-06

Figure 5: In-flight catering market, 2002-07

Industrial relations - operators exposed

Rising fuel prices - the hidden enemy?

Rising airport taxes and duties add to the pain

Broader Market Environment

Key points

A more affluent society

Figure 6: Trends in personal disposable income and consumer expenditure, 2002-12

Population growth continues unabated

Figure 7: Trends in the age structure of the UK population, by gender, 2002-12

Socio-economic balance of the population shifting

Figure 8: Forecast adult population trends, by socio-economic group, 2002-12

Times of our lives

Figure 9: Trends in UK adult population, by lifestage, 2002-12

Household size

Figure 10: Trends in UK household composition, 2002-12

Eating out market trends

Figure 11: The UK market for eating out*, 2002-12

Figure 12: The UK eating out market*, by segment, at constant prices, 2007-12

The growth in snacking

Healthy eating trends

Environmental considerations

Competitive Context

Key points

Holidays and eating out biggest areas of leisure spend

Figure 13: UK spending priorities for year ahead, January 2005-08

Shift in holiday patterns to benefit airport catering?

Figure 14: UK onboard rail catering market, 2002-07

Railway catering providing stiffer competition

Roadside operations boosted by premium brands

Inflight catering ups the ante

More competition from in-flight in the future?

Strengths and Weaknesses in the Market

Strengths

A captive audience…

…and a growing market

Tighter security could help?

Growing number of familiar high street brands…

…and an expanding choice of outlets

Weaknesses

Longer check-in times…

…while move to airside may result in some lost trade

Perception that it is expensive…

…and still not meeting all needs

Vulnerable to downturn in air travel?

Market Size and Forecast

Key points

Past performance

Figure 15: The UK airport catering market, 2002-07

Present market performance

Improved catering and security concerns boost airside dwell times

Future market performance

Factors used in forecast

Companies and Products

Key points

Figure 16: Leading airport catering operators, brands and outlet numbers, February 2008

Select Service Partner

Figure 17: Select Service Partner: Airport catering operations, by brand, airport and location, February 2008

The Restaurant Group plc

Figure 18: TRG Concessions: Airport catering brands by category, February 2008

Figure 19: TRG Concessions: Airport catering operations by brand, airport and location, February 2008

New concept development

Alpha Group plc

Financial performance

Figure 20: Alpha Group Plc: Airport catering operations by brand, airport and location, February 2008

Whitbread plc

Brand portfolio

Figure 21: Whitbread Plc: Airport catering operations by brand, airport and location, February 2008

JD Wetherspoon plc

Figure 22: JD Wetherspoon Plc: Airport catering operations by brand, airport and location, February 2008

Caffè Nero Group Ltd

Figure 23: Caffe Nero Group Ltd: Airport catering operations by brand, airport and location, February 2008

Ponti’s Group Ltd

Figure 24: Ponti’s Group Ltd: Airport catering operations by brand, airport and location, February 2008

Other operators

New operators

Brand Communication and Promotion

Key points

Figure 25: Expenditure on main media advertising for selected airport catering operations, October 2006-September 2007

Activity limited mostly to POS promotions

Airport websites also promote catering facilities

Where do People Buy Food and Drink from in Airports?

Key points

Figure 26: Types of outlets visited at UK airport terminals in the last 12 months, October 2007

Informal offers predominate

Equal appeal is key

Specialism scores

Branding boost

Fast food: does it still have a place?

Affluence is all

Internet interest?

How Much do People Spend on Catering in Airports?

Key points

Figure 27: Amount spent on UK airport terminal catering on last visit, October 2007

Casual nature hinders average spend

Families biggest spenders

Big spenders hit the pubs/bars

Figure 28: Outlets visited by amount spent at UK airport terminal on last visit, October 2007

Appendix - Where do People Buy Food and Drink from in Airports?

Figure 38: Types of outlets visited at UK airport terminals in the last 12 months, by detailed demographics, October 2007

Appendix: How much do People Spend on Catering in Airports?

Figure 39: Amount spent at UK airport terminal on last visit, by detailed demographics, October 2007

Appendix: What do People Think About Airport Catering?

Figure 40: Attitudes towards airport catering, by detailed demographics, October 2007

Appendix: Airport Catering Targeting Opportunities

Average amount spent: detail demographics

Figure 41: Average amount spent on food and/or drink on last visit to a UK airport terminal, by demographics, October 2007

Airport catering target groups: detailed demographics

Figure 42: Airport catering target groups, by detailed demographics, October 2007

Abstract

The market for airport catering has enjoyed a boom period during the past five years as the quality of provision has improved, and an increasing number of consumers have opted to fly with no-frills or budget airlines that do not provide in-flight meals.

The value of the market increased by 61% between 2002 and 2007, some way ahead of the 27% increase in passenger numbers moving through UK airports during the same period. The reason for this is that more people are buying from airport catering outlets, and they are spending more per head.

This report examines the market for catering within airport terminal buildings, last reported on by Mintel in Airport Catering - UK, Leisure Intelligence, December 1999. This report considers the hypothesis ‘the trend for low cost travel has been a positive one for airport catering’. It assesses the value of the market, profiles the major operators and looks at consumer behaviour and attitudes relating to airport catering.

Main Issues:

• How have low-cost airlines affect the airport catering market?
• Do consumers want formal sit-down meals or simple grab ‘n’ go options?
• Is eating at the airport purely an exercise in refuelling for travellers or is it a leisure experience too?
• What comparisons can be made with trends in the wider eating out market and high street in particular?

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.