Airport Lounges Market Expected to Hit US$$9.4 Billion by 2029

The airport lounges market is projected to reach US$4.2 billion (MX$79 billion) in 2024 and grow to US$9.4 billion by 2029, reflecting a compound annual growth rate (CAGR) of 17.52% during the forecast period, according to a new report by Mordor Intelligence.

Key drivers of this growth include the rising middle-class population in emerging economies, increased spending on luxury travel, and the expansion of airport lounge amenities. The report highlights that the addition of new lounges with enhanced facilities and increased collaboration between credit card companies and airports are also contributing to market expansion.

Despite this positive outlook, high operational costs remain a significant challenge for the industry. However, advancements in digitization and the integration of virtual reality (VR) and artificial intelligence (AI) are expected to create new business opportunities.

"The growth in the number of air passengers worldwide, coupled with the need for airport lounge providers to upgrade their facilities, drives the market," the report states. It emphasizes that advanced connectivity and entertainment systems are critical for improving passenger experiences and propelling market growth.

Recent trends indicate a substantial increase in airport lounges globally. For instance, the Asia-Pacific region has seen a notable rise in air travelers and spending on aviation infrastructure. The International Air Transport Association (IATA) reported a 98.5% increase in air traffic passengers in Asia-Pacific from August 2022 to August 2023.

In this region, several new projects and upgrades have been announced. In December 2023, Hirsch Bedner Associates (HBA) partnered with Air India to enhance lounge experiences at New Delhi International Airport. Additionally, Delhi International Airport Limited (DIAL) launched the largest lounge facility in India, "Encalm Prive," at Terminal 3 in July 2023.

The market remains moderately fragmented with major players including Qantas Airways Limited, Lufthansa, Cathay Pacific Airways Limited, American Airlines, and United Airlines.