Airport Lounges Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 13.72 Billion |
| Market Size (2029) | USD 17.48 Billion |
| CAGR (2024 - 2029) | 4.96 % |
| Fastest Growing Market | Middle East |
| Largest Market | Asia |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Airport Lounges Market Analysis
The Airport Lounges Market size is estimated at USD 11.40 billion in 2024, and is expected to reach USD 14.05 billion by 2029, at a CAGR of 4.28% during the forecast period (2024-2029).
The airport lounges market is poised for substantial growth in the coming years, driven by the rising middle-class population in emerging nations and a global appetite for luxury travel.
Once mere waiting areas, airport lounges have evolved into luxurious connectivity hubs. Today's lounges boast high-speed internet, gourmet dining, private sleeping pods, and spa services. With a focus on digital integration, lounges now utilize smart technologies, enhancing personalization through apps and biometric systems. Companies are leveraging digital transformating to cut into the market for lounge access and picking revenue shares from lounge operators as well as from dedicated access channels that were limited to large banks operating from developed nations. One such example is Dreamfolks, and Indian firm which has been operating as digital lounge access aggregator in Indian airports. The company claims to have 96% of banking card based footfall share at airport lounges in India, representing 60-70% of total traffic at lounges in India. Despite a slowing market, an increase in airport lounge access costs and change in access policies by banks, which led to a decline in traffic, the company showcased an impressive performance. For the year ending March 2024, the company reported revenues of USD 134 million, up from USD 92 million in 2023.
The airport lounges market features a diverse competitive landscape, encompassing airlines, airports, and independent operators. While airlines offer lounges as perks in their loyalty programs, independent entities provide access through varied membership models. Additionally, airports invest in their lounges to attract more passengers and boost revenue.
Eco-consciousness is shaping the design and operation of modern airport lounges. Many lounges embrace sustainable practices, from using eco-friendly materials to enhancing energy efficiency. This alignment with global environmental goals resonates deeply with today's travelers.
Airport lounges play a pivotal role in bolstering customer loyalty and satisfaction. They serve as a differentiating factor for airlines and airports in a saturated market. The experiences offered can sway a passenger's choice of airline or route, underscoring their strategic importance.
However, airport lounges' substantial operational costs significantly challenge market growth. Yet, as the industry leans into digitization, with trends like virtual reality and artificial intelligence, new business opportunities are set to emerge during the forecast period.
Airport Lounges Market Trends
Premium Class Lounges Held the Highest Share in The Market
Airport premium lounges serve as exclusive havens within airports, offering enhanced services and amenities. These lounges cater primarily to business or first-class travelers, elite frequent flyers, and those willing to pay for premium access. Compared to bustling airport terminals, these lounges provide a quieter and more comfortable ambiance.
With the uptick in global business travel, there's a burgeoning demand for premium services tailored to business travelers. These travelers prioritize comfort, privacy, and productivity. Furthermore, as disposable incomes rise, more passengers pay for premium services, including lounge access. Airlines are expanding their networks into emerging markets and witnessing a surge in premium travelers. This trend has spurred the construction and expansion of premium lounges in new and existing airports. For instance,
In August 2024, Cochin International Airport Limited unveiled its vision of a world-class airport experience at budget-friendly rates. Embracing the innovative concept of 'affordable luxury,' the 0484 Aero Lounge offers an unparalleled premium experience at hourly rates. Spanning an impressive 50,000 sq ft, the lounge boasts 37 rooms, four suites, three boardrooms, two conference halls, a co-working space, a gym, a spa, a library, an exclusive café lounge, and a restaurant, all curated to deliver a unique blend of aesthetic and self-contained luxury.
In June 2024, Delta Air Lines inaugurated its new Delta One Lounge at New York JFK, marking the debut of its ultra-premium lounge series. Following JFK, lounges are set to open in Boston (BOS) and LAX later in 2024, with Seattle-Tacoma International Airport (SEA) slated for 2025. Spanning 39,707 square feet, the Delta One Lounge at JFK is the airline's largest. Noteworthy features include a 140-seat full-service restaurant, beverage-cart service, a bakery, a wellness area, and a terrace equipped with a retractable roof for year-round enjoyment.
Airlines and airports prioritize enhancing the overall passenger experience to set themselves apart in a competitive landscape. Central to this strategy are premium lounges, which provide travelers with a serene and comfortable environment before their flights, thereby contributing to the segment's growth.
The Middle East and Africa Region Poised for Rapid Growth in Demand During the Forecast Period
During the forecast period, the Middle East and Africa are experiencing the fastest market growth (CAGR) at 6.56%. This growth rate surpasses that of larger markets, such as APAC and Europe, which are projected to be valued at USD 4.1 billion and USD 4.3 billion in 2024, respectively.. This surge is attributed to hefty investments in airport infrastructure, a booming population, and rising air travel demand. The Middle East and Africa's strategic positioning as a global transit hub, alongside an influx of migrant workers and tourists, propels this growth. Middle Eastern countries are upgrading their airport facilities to handle rising passenger numbers. This effort encompasses constructing new terminals and modernizing existing ones, directly leading to expanding airport lounge facilities to meet heightened traffic and service expectations. The strategic development aligns with the countries’ broader infrastructure goals, ensuring the aviation sector can support increased passenger throughput and enhanced service quality.
For instance, as part of Saudi Vision 2030, the nation is diversifying its economy with a pronounced emphasis on tourism. This strategy, which includes relaxing visa restrictions and bolstering tourist attractions, is poised to boost international air travel and elevate the demand for airport lounges that cater to tourists desiring premium services. The initiative aims to create a more welcoming environment for international visitors, thereby increasing the volume of inbound tourism and enhancing the overall travel experience.
Similarly, in April 2024, Dubai's leadership greenlit a monumental USD 35 billion expansion plan for Al Maktoum International Airport. The ambitious project aims to construct a new passenger terminal, making Al Maktoum five times the size of the current Dubai International Airport. With a staggering projected capacity of 260 million passengers, Al Maktoum is on track to claim the world’s largest airport title. This expansion opens vast opportunities for the UAE lounge market, as the expected influx of passengers will heighten the demand for premium lounge services, enhancing passenger experiences and offering a competitive edge to service providers in this burgeoning market.
Moreover, in recent years, major South African airports, including OR Tambo International, Cape Town International, and King Shaka International, have undergone significant upgrades to boost capacity and enhance passenger experiences. These upgrades include elevating airport lounges to global standards, ensuring superior comfort and service. The enhancements aim to accommodate increasing passenger volumes and provide a seamless travel experience, aligning with international benchmarks for quality and efficiency.
Airport Lounges Industry Overview
While the airport lounges market remains fragmented, several key players command substantial market shares. Prominent names include American Airlines Group Inc., Lufthansa Group, United Airlines, The Emirates Group, and Qatar Airways Group.
United Airlines boasts its exclusive lounges, branded as United Clubs, providing travelers a tranquil space to relax, work, dine, or drink. United has a significant presence with over 45 United Club locations, six United Polaris lounges, and partner lounges for eligible travelers. In 2023, the company's other segment's operating revenue saw a 15.4% uptick from 2022, primarily fueled by increased mileage revenue from non-airline partners. Key drivers included heightened credit card spending and new member onboarding via a cobranded credit card partnership with JPMorgan Chase Bank, N.A. Furthermore, purchases of United Club memberships and one-time lounge passes increased from the prior year.
The Indian airport lounge market is expected to be valued at over USD 900 million by 2029, at an estimated CAGR of 5%.Dreamfolks a digital lounge access agreggator operating solely in Indian airport lounge access, accounted to USD 134 million in revenue in 2024.
Recently, airport lounge providers have prioritized upgrading their infrastructures to offer passengers a more luxurious and comforting experience. Additionally, many are forging partnerships with tech companies, focusing on premium lounges to enhance passenger amenities. Adopting modern technologies, like smart check-ins and virtual reality experiences, is poised to unlock significant business opportunities in the market.
These companies are broadening their global footprint, collaborating with regional airlines and airports to penetrate emerging markets and secure enduring contracts. These key players uphold a competitive advantage in the lounges market by synchronizing their strategies with market trends and technological advancements. For example, in September 2023, United Airlines unveiled the world's largest airport lounge at its Denver International Airport (DEN) hub. Located near gate B44 on the eastern side of DEN's B Concourse, the expansive 35,000-square-foot lounge spans three levels and boasts over 600 seating options.
Airport Lounges Market Leaders
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American Airlines Group Inc.
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Lufthansa Group
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United Airlines, Inc.
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Qatar Airways Group
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The Emirates Group
*Disclaimer: Major Players sorted in no particular order
Airport Lounges Market News
- June 2024: Air France unveiled its latest signature lounge at Los Angeles airport. The lounge, which covers 11,500 square feet, boasts a Clarins spa offering complimentary facial treatments and an expansive dining area specializing in French cuisine and champagne.
- June 2024: Emirates launched a premium lounge at Paris Charles de Gaulle Airport. The lounge is 925 square meters and caters to First- and Business-Class passengers and Emirates Skywards members. As the world's largest international airline, Emirates has invested over USD 1.58 million in crafting a remarkable lounge experience in Paris. This elevates the standards of premium travel with an emphasis on comfort and convenience.
- March 2024: Flynas, a budget airline from Saudi Arabia, unveiled its revamped lounge, aptly named 'Flynas Lounge,’ at Domestic Terminal No. 5 of King Khalid International Airport's Departures area in Riyadh. The newly opened lounge boasts modern, comfortable furniture to ensure travelers enjoy privacy and relaxation before their flights. Open 24/7, the lounge caters to Flynas passengers and those from other airlines.
Airport Lounges Market Report - Table of Contents
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 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Service Type
5.1.1 Food and Beverages
5.1.2 Connectivity and Entertainment
5.1.3 Passenger Services
5.2 Lounge Ownership
5.2.1 Airline, Airport and Government
5.2.2 Privately Owned
5.3 By Lounge Class
5.3.1 Economy Lounge
5.3.2 Premium Lounge
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 Italy
5.4.2.4 France
5.4.2.5 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 South Korea
5.4.3.5 Rest of Asia-Pacific
5.4.4 Latin America
5.4.4.1 Brazil
5.4.4.2 Mexico
5.4.4.3 Rest of Latin America
5.4.5 Middle East and Africa
5.4.5.1 United Arab Emirates
5.4.5.2 Saudi Arabia
5.4.5.3 Qatar
5.4.5.4 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Priority Pass Limited
6.2.2 Plaza Premium Group
6.2.3 Delta Air Lines, Inc.
6.2.4 United Airlines, Inc.
6.2.5 The Emirates Group
6.2.6 Qatar Airways Group
6.2.7 Cathay Pacific Airways Limited
6.2.8 Qantas Airways Limited
6.2.9 American Airlines Group Inc.
6.2.10 Lufthansa Group
6.2.11 DragonPass International Ltd.
6.2.12 Airport Dimensions (Collinson Group Ltd.)
6.2.13 Dreamfolks Services Ltd.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Airport Lounges Industry Segmentation
Airport lounges enhance the travel experience for select passengers, providing premium seating, serene environments, and improved customer service access. Beyond just comfort, these lounges offer a broader range of amenities, setting them apart from typical airport waiting areas.
The airport lounges market is segmented by service type, lounge class, and geography. By service type, the market is segmented into food and beverages, connectivity and entertainment, and passenger services. Connectivity and entertainment includes Wi-Fi, leisure, reading, and entertainment services, while passenger services include wellness, resting, and shower. By lounge class the market is segmented into economylounge and premium lounge. The report also covers the market sizes and forecasts for the airport lounges market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
| Service Type | |
| Food and Beverages | |
| Connectivity and Entertainment | |
| Passenger Services |
| Lounge Ownership | |
| Airline, Airport and Government | |
| Privately Owned |
| By Lounge Class | |
| Economy Lounge | |
| Premium Lounge |
| Geography | |||||||
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Airport Lounges Market Research FAQs
How big is the Airport Lounges Market?
The Airport Lounges Market size is expected to reach USD 13.72 billion in 2024 and grow at a CAGR of 4.96% to reach USD 17.48 billion by 2029.
What is the current Airport Lounges Market size?
In 2024, the Airport Lounges Market size is expected to reach USD 13.72 billion.
Who are the key players in Airport Lounges Market?
American Airlines Group Inc., Lufthansa Group, United Airlines, Inc., Qatar Airways Group and The Emirates Group are the major companies operating in the Airport Lounges Market.
Which is the fastest growing region in Airport Lounges Market?
Middle East is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Airport Lounges Market?
In 2024, the Asia accounts for the largest market share in Airport Lounges Market.
What years does this Airport Lounges Market cover, and what was the market size in 2023?
In 2023, the Airport Lounges Market size was estimated at USD 13.04 billion. The report covers the Airport Lounges Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Airport Lounges Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Airport Lounges Industry Report
Statistics for the 2024 Airport Lounges market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Airport Lounges analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Airport Lounges Market Report Snapshots
