Indian Travelers Prioritize Lounge Access, Driving Demand For Superior Airport Services

Wednesday, July 10, 2024

India booming aviation sector sees a surge in lounge usage, redefining airport experiences and setting global benchmarks.

In India, which is rapidly emerging as the world’s most dynamic aviation market, travelers demonstrate an unparalleled zeal for airport lounge access, underscoring their growing demand for enhanced airport experiences. This trend positions India as a potential leader in the sector, potentially surpassing established hubs like Singapore, China, and Hong Kong.

The report “AX24: The Age of the Airport Experience” by Airport Dimensions, which specializes in airport lounge and experience services, surveyed over 9,000 travelers. This research delves into passenger satisfaction and the improvements they seek during their airport visits.

Findings indicate that Indian passengers are likely to travel twice as often as the global average, signaling a vast opportunity within India’s aviation sector. The AX24 findings are crucial for airport operators and concessionaires, guiding them to refine their services to boost revenue and align better with customer expectations.

India is set to invest about 980 billion rupees (approximately $12 billion) from 2023 to 2025 to enhance its airport infrastructure in response to increasing demand. By 2025, the number of airports in India is expected to rise to 220 from 148.

The survey forecasts a 16% increase in travel frequency among Indian travelers over the next year, outpacing the global average of 8%. This growth is driven by a 22% increase in business travel and a 35% surge in international travel within this market, largely fueled by Millennial and Gen Z demographics.

Indian travelers display a distinct preference for traditional airport retail but are increasingly drawn to enhanced experiences that offer more than just shopping. Personalized shopping, interactive experiences, and pop-up concepts are particularly appealing to them, and they are willing to pay for these premium experiences.

Moreover, 76% of Indian travelers utilize airport lounges when available, a significant contrast to the 50% usage rate globally. An impressive 84% believe that increased lounge access would greatly improve their airport experience. This demand also helps manage passenger flows and reduces overcrowding at lounges.

In terms of lounge amenities, Indian travelers prioritize food and beverage options above all, even more than waiting times at airports. Family provisions and leisure facilities are also highly valued, reflecting a shift from a purely business-oriented lounge use to one that supports broader lifestyle and leisure needs.

Unlike their global counterparts, Indian travelers often use non-airline based access to lounges, such as Priority Pass or benefits through banks and credit cards, due to lower participation in Frequent Flyer Programs.

Lastly, Indian passengers are highly digitally savvy, with a vast majority using mobile apps and digital services to enhance their airport experience. This digital engagement extends to preferences for managing flight information and food and beverage orders via personal devices, highlighting an opportunity for airports to strengthen traveler relationships through enhanced digital platforms.

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 travelers’ 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 travelers, helping airport decision makers to ensure their offerings are best in class.” 

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