Travellers in the world’s fastest-growing aviation market, India, are some of the world’s most enthusiastic lounge users, with an ever-growing appetite for an elevated airport experience that positions the region as a contender to overtake current experience leaders like Singapore, China and Hong Kong.
‘AX24: The Age of the Airport Experience’, the latest round of research from global airport lounge and experience specialists Airport Dimensions, is a comprehensive study of more than 9,000 travellers1 about their journeys through the airport, examining how satisfied they are and what changes they would introduce in order to improve their experience.
The research found that Indian travellers have an anticipated increase in trip frequency of double the global average, highlighting the scale of the opportunity available in the Indian aviation ecosystem. Given the rapid pace of sector expansion in this market, the AX24 data helps to identify several areas for airport operators and concessionaires to focus and improve their offerings to deliver revenue growth and be better placed to meet customer expectations.
A Burgeoning Market
India will spend approximately 980 billion rupees ($12 billion) between 2023-2025 on airports, in order to ease the pressures that ever-growing demand is putting on existing infrastructure. By 2025, there will be 220 airports in the country – up from 148 at the start of 20232.
Indian travellers expect 16% growth in travel frequency over the next 12 months, compared to a global average of 8%. That means that of those surveyed for AX24, each Indian traveller is predicted to make an average of 6.5 trips in the year ahead.
This growth is being driven by increased expectations on business travel, which are growing at 22% in this market versus a global average of 11%, and increased international travel of 35% against the global average of 16%. India mirrors the wider global trend for travel frequency being driven primarily by Millenial and Gen Z travellers.
Affinity for Airport Shopping
Indian travellers show continued interest in traditional airport retail, more so than their global counterparts. This enthusiasm is likely fueled by the recent surge in new, modern airport infrastructure boasting a wider variety of shops and brands.
However, the AX24 data also outlines a growing desire for experiences that offer greater value than just traditional shopping – 63% of Indian travellers identify as ‘experience seeking’. Personalized shopping, interactive elements and pop-up concepts are more appealing and memorable for travellers, and they’re willing to pay for this added value.
Indian travellers also over index on desire for wellness and grooming and gaming services versus the global average, showing a keen appetite for unique ways to elevate their time at the airport.
Lounge Lovers
When the amenities are available3, Indian travellers are some of the most enthusiastic global lounge users, with three-quarters (76%) suggesting that they use airport lounges, compared to 50% worldwide. 84% Indian travellers believe that more lounge access options would significantly enhance their airport experience. Increased lounge access options can also be instrumental in helping to manage passenger flow and addressing overcrowding at the lounge check-in counters.
Aligned to a global trend towards the importance of food and beverage (F&B), Indian travellers say that the F&B offering is the most important factor when deciding to purchase lounge access, even more important than their wait time at the airport. They rank provisions for family a close second (85%), and leisure facilities rank at 76% when it comes to purchasing intent, reflecting a pivot away from a business focus to lounges supporting leisure and lifestyle aspirations.
Indian travellers rely less on their airline, e.g. class of travel and Frequent Flyer Program (FFP) status, for lounge access, and instead use either network programs such as Priority Pass, or lounge benefits provided through banks or credit cards. With lower levels of FFP participation, 35% in India, verses a global average of 51%, they are seeking rewards, recognition and benefits from alternative sources, and like the flexibility of travel benefits, such as lounge access, that are not tied to a particular airline. This opens up greater opportunities for airports to influence travellers’ loyalty. This is a trend that will likely be mirrored around the world over time as lounge propositions and access options continue to evolve.
Digital Natives
Indian travellers are among the most digitally engaged in the world, actively using mobile apps and other digital tools to enhance their airport journey. Only 15% of Indian travellers report never interacting with airport digital assets, compared to a global average of 21%.
This demand for digital services extends into the lounge. 90% of respondents said that they would prefer accessing flight information from their phone in-lounge, closely followed by the ability to place food and beverage orders via their own device (86%).
This presents an opportunity for airports to leverage mobile apps and develop robust digital platforms to build stronger relationships with travellers, particularly to fill the vacancy created by the declining role of Frequent Flyer Programs.
Errol McGlothan, President, EMEA & APAC at Airport Dimensions, said: “As one might expect from the fastest-growing aviation market in the world, the Indian travel sector is redefining modern travellers’ expectations for airport experiences. These evolving expectations and behaviors will significantly influence the global airport landscape. Airport Dimensions is excited to support this transformation by developing innovative experiences tailored to the needs of these forward-thinking travellers, helping airport decision makers to ensure their offerings are best in class.”
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