Abstract

About this report

• Retailers continue to represent the main competition to airport caterers:. Seven million consumers have purchased food and/or drink from a retailer, such as newsagent, convenience store or M&S Food, at an airport in the last 12 months.
• People believe that food at airports is too expensive and of low quality. Despite prices being contractual, controlled and linked to the high street, nearly 15 million people see airport food as being too expensive and 9 million argue that the quality isn' t very good.
• Some 9 million consumers only buy food at an airport to refuel.
• Although many consumers, particularly low-cost airline passengers, may be anxious to get to the front of the boarding queue, the majority of passengers do have time to buy food & drink at airports. Only 3.5 million people say that time constraints stop them from spending on food & drink at airports, suggesting stress rather than time constraints limits their purchases.
• Seven million consumers dislike the food served on planes, representing an obvious target market for airport caterers. Appealing to these consumers should involve visual prompts, such as packed lunch-type products and a focus on carry-on packaging concepts.
• As air travel has become more and more commonplace, so the notion of a holiday starting once the holidaymaker has reached the airport has decreased over time. Only one in ten consumers feel they have already started their holiday at the airport.

Research Methodology

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Table of Contents

ISSUES IN THE MARKET

• Definition
• Consumer research
• Abbreviations

MARKET IN BRIEF

• Unique market conditions
• Impact of the recession
  • Figure 1: Trends in products bought at an airport, 2008 and 2009
• Market size and forecast
• In-house versus high street brands
• Consumer habits and attitudes

INTERNAL MARKET ENVIRONMENT

• Key points
• Passenger numbers fell in 2009
  • Figure 2: Trends in UK airport passenger numbers, 2002-09
  • Figure 3: Airport passengers, by airport, 2001 and 2009
• Competition Commission review of UK airport ownership
• Airport expansion
• Impact of low-cost carriers
  • Figure 4: Scheduled passengers carried, by main low-cost airlines, 2001-09
  • No-frills trend continues
• The profile of airport passengers
  • Figure 5: Demographic profile of passengers at select BAA airports, 2009
  • Figure 6: Trends in reasons for travel, 2007-09
• Industrial relations

BROADER MARKET ENVIRONMENT

• Key points
• Economic factors
  • Figure 7: GDP, PDI, consumer expenditure and savings, at constant 2004 prices, 2004-14
  • Figure 8: Trends in consumer confidence, May 2008-November 2009
  • Figure 9: Trends in how respondents would describe their financial situation, February-November 2009
• Demographic factors
  • Figure 10: Forecast adult population trends, by lifestage, 2004-14
• Eating out market
  • Figure 11: UK eating out market size and forecast, 2004-14
  • Figure 12: Trends in what extra money is spent on, December 2009

COMPETITIVE CONTEXT

• Key point
• Competition from airport retailers
  • Figure 13: Types of outlets visited at UK airport terminals, December 2009

STRENGTHS AND WEAKNESSES IN THE MARKET

• Strengths
• Weaknesses

MARKET SIZE AND FORECAST

• Key points
• Past performance
  • Figure 14: The UK airport catering market and forecast, 2004-14
• FACTORS USED IN FORECAST

MARKET SHARE

• Key points
  • Figure 15: Catering outlets in BAA airports, 2009

COMPANIES AND PRODUCTS

• Key points
  • Figure 16: Airport catering operators and brands, 2009
• MAJOR PLAYERS
• JD Wetherspoon plc
  • Figure 17: JD Wetherspoon Plc: Airport catering operations, by brand, airport and location, 2009
• Ponti' s Group Ltd
  • Figure 18: Ponti' s Group Ltd: Airport catering operations, by brand, airport and location, 2009
  • Figure 19: Ponti' s Group Limited financials, 2008 and 2009
• Select Service Partner
  • Figure 20: Select Service Partner: Airport catering operations, by brand, airport and location, December 2009
• The Restaurant Group plc
  • Figure 21: TRG Concessions: Airport catering brands, by category, 2009
  • Figure 22: The Restaurant Group: Airport catering operations, by brand, airport and location, December 2009
  • Figure 23: Financials for TRG Concessions, 2007 and 2008
  • Figure 24: Half-year financials (unaudited) for TRG Concessions, 2008 and 2009
• Whitbread plc
  • Figure 25: Whitbread Plc: Airport catering operations, by brand, airport and location, December 2009

WHERE DO PEOPLE BUY FOOD AND DRINK FROM IN AIRPORTS?

• Key points
• Types of outlet visited
  • Figure 26: Types of outlets visited at UK airport terminals, December 2009
• Convenience stores encroaching on catering sales
  • Boredom factor
• Preferences of different demographics
• Other brands consumers would like to see at airports

HOW MUCH DO PEOPLE SPEND ON CATERING IN AIRPORTS?

• Key points
• How much do people spend on catering at airports?
  • Figure 27: Spend per visit, December 2009
• Children drive food/beverage expenditure at airports

APPENDIX - WHERE DO PEOPLE BUY FOOD AND DRINK FROM IN AIRPORTS?

• Figure 28: Most popular types of outlets visited at UK airport terminals, by detailed demographics, December 2009
• Figure 29: Next most popular types of outlets visited at UK airport terminals, by detailed demographics, December 2009
• Figure 30: Types of outlets visited at UK airport terminals, by types of outlets visited at UK airport terminals, December 2009

APPENDIX - HOW MUCH DO PEOPLE SPEND ON CATERING IN AIRPORTS?

• Figure 31: Spend per visit, by detailed demographics, December 2009
• Figure 32: Spend per visit, by types of outlets visited at UK airports, December 2009

APPENDIX: RESEARCH METHODOLOGY