In Punta Cana, a report highlights how AI has remolded the market scenario: Technovio anticipates the global non-aeronautical revenue market size of airports to expand by up to USD 43.99 billion between 2025-2029.
It’s projected that the market will see a CAGR of 8.4% during the forecast period. State-of-the-art airport terminals are driving this growth, with an emerging trend being the evolution of airport cities and aerotropolis concepts. However, the challenge remains the high-cost market penetration.
Key Market Trends Propelling Growth
Airports have evolved from simple transit facilities into shopping hubs, now known as airport cities or aerotropolis. Among major contributions to this shift are commercial activities within passenger terminals, particularly in the operations zone, such as retail and gallery spaces. Airport cities today provide a myriad of commercial functions, including shopping and dining, within their premises.
Airports are transforming into centers of retail and food service, offering ample non-aeronautical revenue opportunities. Alongside this, services like rentals, digital advertising, and contactless payment methods are gaining traction.
Passenger and cargo operations are becoming increasingly efficient with advanced technology partnerships with major airports and retailers. Digital passenger engagement strategies, including personalized shopping recommendations and contactless payment solutions through mobile apps, are trending.
Major industry players are harnessing technology to deliver memorable and convenient passenger experiences. They are partnering with e-commerce platforms and luxury brands to meet the changing consumer preferences for superior retail experiences and seamless travel. The future of airport revenue lies in offering an enjoyable journey, starting from food pre-ordering to integrated shopping experiences.
Market Challenges
Non-aeronautical revenues of airports, especially from sleeping cabins, are rising due to increased passenger traffic and investments. However, the market expansion is limited by various challenges. Travelers with budget constraints may find cabin rentals, priced between 15 and 20 dollars per hour, costly.
Moreover, the need for sleeping cabins is reduced for executive class passengers, who usually have free access to lounging areas as part of their airline loyalty programs. Some airports offer alternatives like sun-loungers, diminishing the demand for sleeping cabins.
Non-aeronautical revenues, stemming from various sources like ground support equipment, luggage systems, and car rentals, significantly supplement airports’ income. These services, plus amenities like restaurants, duty-free shops, advertising spaces, parking lots, and improvements in passenger experience all play a vital role in the success of airport business.
