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How Airport Lounge Market Is Benefiting And Expanding Aviation Industry

The industry must continue to work constructively with its key stakeholders including the government and policy-makers to ensure that this sizeable increase in demand can be met for it is necessary to realize the full benefits that the air transport industry can deliver to India.

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The aviation Industry continues to be an indispensable medium of transport around the world. And the demand for it continues to grow owing to multiple factors. The Indian air transport sector has shown very strong growth in recent years – particularly on the domestic market segment. As it is headed towards a promising future, it also needs to equip itself for the demand it is going to face in a country with a population of 1.3 billion. It requires a solution which along with aiding it in its growth also arranges to handle its challenges in future.

The aviation industry has seen multiple trends and developments since its inception. Limited to business and premium class travelers once upon a time, today it has come up to cater to a wide segment of society. Over the decades the industry has expanded its roots, assimilating and blending the services of various industries, creating an ecosystem within itself. And the sustainability and adaptability of this ecosystem have made it the first choice of its customers over the period. 

On the same tracks, introduced long back in the 1980s, the airport lounges have now become a trend in aviation cum hospitality industry. These lounges offer world-class amenities, great seating areas, comfortable massage recliners, exquisite cuisines, beverages, space to work and many other facilities that are a traveler`s delight amid a long journey. Airports have become much more than a travel stop now and people look forward to spending the gaps amid their journey relaxing in the lounges. And this is reflected by the fact that while in 2010, 79 million people traveled to/from/or within India. By 2017 that had doubled to 158 million. This number is expected to treble to 520 million by 2037. 

Apart from serving as an attraction hub for its customers and improving the guest experience, airport lounges also contribute in generating revenue through retail, making optimum use of the portion of real estate on airports which doesn`t serve as a good location for stores or restaurants. 

Besides that, airport lounges also aid in growing the business of airport by attracting new airlines whether it’s an international carrier or even other domestic carriers who don’t have their lounges. For an airport to grow, they must have a lounge. San Jose, California has become a favourite for new airlines and one of the key reason was that they had a lounge available that they could use.

Moreover, as the world’s largest democracy with a population of more than 1.3 billion citizens, India’s potential for further growth and industry development is very clear. Air passenger numbers to, from and within India is expected to increase by 3.3x over the next 20 years, to more than 500 million passenger journeys per year. This strong growth outlook for air passenger demand will see India overtake Germany, Japan, Spain, and the UK within the next 10 years, to become the world’s third-largest air passenger market.

 Managing such a huge volume of passengers would be impossible without taking care of their comfort during travel. The ongoing trend of the development of lounges would prove to be a smart and far-sighted solution for the future endeavours of the industry. 

The industry must continue to work constructively with its key stakeholders including the government and policy-makers to ensure that this sizeable increase in demand can be met for it is necessary to realize the full benefits that the air transport industry can deliver to India. Thus, airport lounges are not only pushing the industry towards newer heights but also arming it in advance for the challenges that are inevitable but also indispensable.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


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Bhavya Kukreja

Bhavya Kukreja is the General Manager (PR and Marcom) at Plaza Premium Group India.

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