DUBLIN--(BUSINESS WIRE)--The "Airport Lounges Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)" report has been added to ResearchAndMarkets.com's offering.
The Airport Lounges market is poised for a promising ascent, projected to achieve a robust Compound Annual Growth Rate (CAGR) of 6% through 2023-2028
As passenger traffic stages a resolute comeback to pre-COVID levels, the airport lounge sector is witnessing a newfound stability. Airports across the globe are proactively enhancing their offerings by introducing novel lounges and expanding services within existing ones, strategically luring more passengers to indulge in premium lounge experiences.
This strategic maneuver not only acts as a catalyst for market growth but also leads to a surge in the overall revenue generated by these establishments. A notable catalyst further invigorating this market landscape is the strategic collaboration between credit and debit card companies and airport lounges.
By extending lounge access benefits to their cardholders, financial institutions are propelling the market forward, fostering a symbiotic relationship that is expected to fuel sustained growth over the forecast period.
Construction of New Airports and Expansion of Existing Airports Will increase the Demand for Airport Lounge Market During the Forecast period
Many countries have been planning to construct new airports with the increase in air passenger traffic. In March 2022 Indian aviation ministry approved the construction of 21 greenfield airports in the country. According to the Center for Aviation report, a total of 633 projects are ongoing at existing airports globally, and the amount estimated for the projects collectively is about USD 565.7 billion.
New airports would allow the market to grow, as more lounges will be constructed for passengers. Airports worldwide have faced losses during the COVID and are currently recovering. The expansion of the existing airports has increased to accommodate the passenger and meet the air passenger traffic.
For instance, at Newark International Airport in the United States, a new terminal, Terminal A, has been constructed and will be unveiled in November 2022. The terminal has nearly 30,00 sq ft dedicated to four different lounges, one of which is the American Express Centurion lounge spread across an 18,000 sq ft area. This lounge has a piano lounge, a Jersey jazz-themed bar, and a speakeasy-themed cocktail lounge. American Express is also planning on adding wellness rooms, workstations, and multiple food buffets.
Asia-Pacific is expected to Grow During the Forecast period
Currently, North America holds the biggest share in the Airport Lounges market, and the United Arab Emirates has the most and best premium class lounges. But Asia-Pacific has become a significant hub for the aviation industry.
The emerging economies in the region, like India and China, are experiencing a massive surge in their respective civil aviation markets due to an increased demand for air travel. Hence, the revenues from Asia-Pacific are projected to witness a high growth rate during the forecast period.
According to a report released by the Centre of Aviation in March 2022, Asia-Pacific holds the largest number of ongoing airport construction projects, 40.2% of the global value, and the estimated value is USD 227 billion. Along with these two major countries, Singapore and Australia also witness growth in the airport lounge market. According to a statement released by the Ministry of Civil Aviation, it is expected that the number of airport lounges in India will increase to 150-160 by 2030.
In October 2022, JP Morgan opened a new lounge, the Chase Sapphire, at Hong Kong International Airport. This is an upgrade to the already existing The Club lounge, located at the terminal 1 of the airport.
Such developments are likely to propel the growth of the airport lounges market over the forecast period.
Airport Lounges Market Competitor Analysis
The Airport Lounges market has several players, and the market's concentration is moderate. American Express Centurion Lounge, Plaza Premium Lounge, DreamFolks, Airport Dimension, and United Airlines are some of the prominent players in the market.
Airport Lounge providing airlines and companies are now concentrating on providing more comforting and luxurious experiences to travelers and working on premium class lounges with amenities such as spas, clubs, etc.; in October 2022, United Airlines unveiled its new lounge concept, 'ClubFly,' at Denver Airport, which is described as a 'grab-and-go' lounge. The lounge can be accessed via automated gate entry, and eligible travelers can avail of the services by scanning their passes.
The lounge has coffee, non-alcoholic drinks, and on-the-go food like sandwiches, salads, wraps, etc. A few lounge companies are collaborating as well. In November 2022, Airport Dimensions and AMBAAR Lounge opened two new Ambaar Club lounges at Salvador Bahia International Airport, Brazil. Collaborations and new concept lounges such as the aforementioned will drive the market during the forecast period.
Company Profiles
- United Airlines
- American Express - Centurion Lounge
- DreamFolks
- Airport Dimensions
- Plaza Premium Lounge
- Marhaba Lounge
- Qantas Lounge
- Cathay Pacific Lounge
- Lufthansa Lounge
- Escape Lounge
- American Airlines
Key Topics Covered:
1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
5 MARKET SEGMENTATION
5.1 By Service
5.1.1 Food and Beverage
5.1.2 Connectivity and Entertainment
5.1.3 Passenger Services
5.2 By Lounge Ownership
5.2.1 Airline, Airport, and Government Owned
5.2.2 Privately Owned
5.3 By Type
5.3.1 Economy Lounge
5.3.2 Premium Lounge
5.4 By Geography
6 COMPETITIVE LANDSCAPE
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