June 27, 2017
The fact that travelers are spending more time in airports, mostly due to security check-in demands, means they have time to kill, and how they spend that time is proving lucrative to retailers housed in airports.
A new GlobalData report reveals spending in airports hit $38 billion worldwide last year and is projected to grow by 27 percent, hitting $49 billion, in just four years.
"Apart from the growing number of air travelers, increased security over recent years delivers a constantly changing captive audience for airside retailers, which claim 83 percent of all spending in airports. This audience has time to kill and, especially when on holiday, is in the mood to spend," said Maureen Hinton, group research director, in a press release.
Yet U.S. airports aren't benefiting the most, as Asia-Pacific airports generated the most spend, attaining $14.8 billion. European airports are in second place, with $10.7 billion. The U.S., which the release said has "traditionally offered a poor shopping experience," is starting to cash in and developing new retail spaces and offers.
"Airports appreciate the extra revenue and are willing to invest in creating a more inviting space for travelers. For example, in Singapore's Changi airport you can catch a movie, browse new art, play games, pamper yourself in a spa and entertain your kids — the airport equivalent of a modern shopping center," stated Hinton in the release.
