Global Airport Non-Aeronautical Revenue Market 2017-2021
About Airport Non-Aeronautical Revenue
Over the past decade, the aviation industry has seen many changes in consumer behavior and preferences toward airports. Airline passengers have been significantly influenced by the sophisticated services, high-quality food, and comfortable stay that airports have to offer. Also, services that assist airlines in performing their operations in airports generate a significant portion of non-aeronautical revenue. Also, competitive offerings by airports will influence the choice of carriers. From an airport perspective, generation of non-aeronautical revenue is imperative to keep the revenue flowing. Aviation charges, such as landing and parking fees, play a vital role in the generation of non-aeronautical revenue; therefore, aviation experts are endeavoring to make them economical.
Technavio’s analysts forecast the global airport non-aeronautical revenue market to grow at a CAGR of 8.95% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global airport non-aeronautical revenue market for 2017-2021. To calculate the market size, the report considers the revenue generated from concessionaires, parking and car rentals, land rent, terminal rentals, and other services.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Airport Non-Aeronautical Revenue Market 2017-2021
Technavio recognizes the following companies as the key players in the global airport non-aeronautical revenue market: Department of Aviation, Airport Authority Hong Kong, Metropolitan Airports Commission, Copenhagen Airports, and Korea Airports Corporation.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is progression of airport cities and aerotropolis concepts. Gradual adoption of airport city strategies and evolution of aerotropolis (urban economic zones centered around airports) are being realized worldwide. One of the major instruments supporting this growth attribute is the development of airports from mere air transport facility to a multi-functional, commercial business hub within airport boundaries and beyond.”
According to the report, one driver in market is evolving sophisticated airport terminals. Though the main functional core of an airport is its passenger terminals, it also carries out various commercial activities that generate non-aeronautical revenues through luxury commercial spaces offering high-end products and services. Airport operators are morphing terminal spaces to shopping malls, along with artistic and recreational venues, to attract passengers and earn non-aeronautical revenues. Airport operators are also providing conference rooms to business passengers to reduce their travel time and eliminate their need to travel to cities. Airport terminal areas are no longer restricted to food courts, magazine shops, and duty-free stores. They also contain gallerias and shopping streets featuring specialty retail, brand name boutiques, upscale restaurants, along with entertainment, live music, arts, and cultural attractions. International brands are being complemented with locally-themed products and dining outlets.
Further, the report states that one challenges in market is cost-intensive market penetration. Though factors such growing passenger traffic and significant investments are driving airport non-aeronautical revenue, few challenges hinder the growth of the market. For instance, most domestic or regional airports are only used for arrival and departure and offer very few concessionaires. Passengers who are traveling through these airports do not wait for a long time, thereby bringing down the need for sleeping pods or any other rest areas in these terminals. Also, the limited terminal space at airports is one of the major constraints for the deployment of sleeping pods, especially at brown-field airports where the airport terminal space is already saturated. In addition, most airports have lounges and other rest areas that offer more privacy to passengers than sleeping pods.
Department of Aviation, Airport Authority Hong Kong, Metropolitan Airports Commission, Copenhagen Airports, and Korea Airports Corporation.
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