Rising Passenger Traffic Augurs Well for In-Flight Catering Services Market, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on the In-Flight Catering Services markets. Global market for In-Flight Catering Services is projected to reach US$16.5 billion by 2018, driven by addition of new, efficient airplanes with enhanced passenger capacity, rising demand for quality food, and innovative offerings in menus.

In-Flight Catering Services: A Global Strategic Business Report

Follow us on LinkedIn – Growth dynamics of the global airline catering market are largely dependent on the developments in the aviation sector. With the rise in the number of aircraft in the global airline industry, the demand for in-flight catering services has also increased in the past few years. Being closely related to the growth in the number of passengers, trends governing the airline sector also percolate to the in-flight catering services market. Prior to 2009, strong growth in airline passenger traffic translated into positive results for the airline catering market. However, revenues fell dramatically in 2009 owing to the global economic downturn and rising fuel prices. With airline carriers focusing on reducing overall expenditure in times of financial distress, airline catering was given the axe by several airline operators.

A number of carriers abandoned in-flight catering on short and mid haul flights, while complimentary meals in flights disappeared in Europe. The cost-cutting focus of airline operators also gave strength to buy-on-board practices. Low-cost airlines, which played a significant role in boosting overall traffic, have also put pressure on the in-flight catering services market. Amount spent by airline caterers per passenger is expected to witness an incremental decline in the coming years. The market is expected to grow at a moderate pace in the next few years with growth emerging primarily from the increasing passenger traffic worldwide, addition of new aircrafts, and continuing innovations in on-board menus.

Passengers’ attitude towards airlines has changed drastically over the years as they are demanding more at a lesser cost. People’s changing preferences in favor of a wide variety of foods, particularly in view of the growing health consciousness and increasing awareness about nutrition, are also influencing trends in the in-flight catering services market. In response to changing consumer trends and increasing competition, in-flight catering companies started establishing operations in multiple countries. Networking became a crucial factor for success of airline caterers. By gaining presence in multiple locations, airline caterers managed to deliver a consistent and high quality service to the clients.

Food safety is another focus area for companies operating in the global in-flight catering services market. This is because of several reported instances of low quality food being served in air carriers. Apart from concerns over slide in food taste, issues are also arising over the lack of hygiene in kitchen areas. With quality and hygiene becoming a deciding factor for passengers in choosing a flight, catering companies are adopting stringent security measures such as GPS tracking and 24-hour security surveillance to maintain quality of foods offered by them.

As stated by the new market research report on In-Flight Catering Services, the United States represents the single largest market for in-flight catering services. Of late, most of the airlines in the US have begun charging customers for virtually every service, including choosing seats, early boarding and on-board food. Lower passenger numbers and heavy losses have incited many carriers to cut down on expenditures through unbundling services and minimizing operational costs, which included rescinding offer of free hot meals aboard an aircraft. Many travelers have shown willingness to pay for on-board food since the introduction of this concept. Banking on this trend, some carriers have begun selling premium meals in the economy class on certain routes. Following significant declines in revenues during the recession struck period of 2008-2009, the US In-Flight Catering Services market recovered since 2010. With further recovery and increase in accessibility of air travel over the following years, the market is projected to register positive growth over the following years, albeit at a moderate rate.

On the other hand, rising passenger traffic across Asia, Middle East, and Africa is expected to offer huge opportunities for in-flight catering services market participants. Despite the dismal performance of the airline sector globally in the past few years, these regions continue to be profit-generating centers for leading airlines. In particular, the Middle East is emerging as a hub of international airline activity with the region registering the highest number of order bookings for new aircrafts. In Asia and Middle East regions, traditional airlines continue to own and operate in-flight catering services despite the increasing cost pressures amidst uncertain economic environment.

Worldwide in-flight catering services market is dominated by LSG SkyChefs, Gate Gourmet, and Servair. Major players profiled in the report include dnata, DO & CO Restaurants & Catering AG, Emirates Flight Catering Co. LLC, Flying Food Group LLC, Gate Gourmet Switzerland GmbH, Journey Group Plc, LSG Sky Chefs, Newrest Group International S.A.S, SATS Limited, and Servair SA, among others.

The research report titled “In-Flight Catering Services: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for all major geographic markets including the US, Canada, Japan, Europe, Asia-Pacific (China and Rest of Asia-Pacific), Middle East, Africa, and Latin America.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/In_Flight_Catering_Services_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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