As airports evolve into bustling hubs of commerce, these travel hubs have become a key player in retail & tourism. From luxury boutiques and lavish dining halls to tech gadgets and local souvenirs, the airport economy reflects a broader trend of enhancing passenger experience. With global travel on a rise, airports have become more than just a gateway to destinations.
The post covid travel has seen a remarkable rise with an increased passenger traffic. The expansion of various airports in India has become a witness to this growing presence of brands and exclusive products at these gateways. The current boom in the economy acts as a major key-player in the growing footfall across
every airport, especially amongst the metro cities. While a lot of major brands have not marked their presence at all Indian airports, they have still managed to create an exclusivity and a demand amongst frequent flyers.
In regions like Asia-Pacific, the investments in infrastructure and modernization contribute to annual growth rates over 10% in some markets. IRHPL's growing presence has marked the contribution of retail and hospitality in the Indian airports economy. The evolving needs of travellers gives the retail business a huge expansion opportunity, as the importance of comfort has taken over other various factors.
Ever since the rapid growth of the aviation economy, aero and non-aero incomes have played a key role in the growth of this sector. Although airports have generated almost 60% of their income from the aero-income, in the last decade non-aero income has drastically increased.The growing retail sector continues to open more opportunities for upcoming brands, pulling the F&B sector parallelly. One top brand’s presence at an airport creates a buzz amongst various competitors, thus giving the customer a wide range of options. A modern day traveller likes to ease out on various factors. IRHPL's own concept stores are
targeted towards providing those last minute essentials, which not only are requirement specific but also cater towards gifting.
The reports suggest that the airport retail market alone is projected to grow at a compound annual growth rate of 7-8% over the next several years. If the number of travellers increases in comparison to the pre-covid numbers, these numbers could see an even bigger rise.
