A new study by Airports Council International Asia-Pacific and Middle East suggests that the long-held belief that higher passenger numbers automatically lead to higher airport revenues is no longer accurate, highlighting a shift in how airports generate and sustain income.
According to gulfnews, the study, covering 36 major airports across 21 countries and drawing insights from 4,000 passengers and retail operators, points to a structural shift in airport commercial performance.
Instead, airport retail growth is now shaped by who is travelling, how they behave and how satisfied they are, not just how many pass through terminals.
Passenger mix matters more than footfall
While passenger volumes across Asia-Pacific and the Middle East have largely recovered or even surpassed pre-pandemic levels, revenue outcomes vary sharply depending on passenger mix and spending behaviour.
“The traditional assumption that commercial performance scales automatically with passenger volumes is no longer reliable,” said Stefano Baronci, Director General of ACI Asia-Pacific & Middle East. “What this study highlights is a structural change: as passenger behaviour becomes more segmented, revenue outcomes depend increasingly on who travels, not simply how many travel.”
Middle East leads in retail yield
Nowhere is this shift more evident than in the Middle East. Non-aeronautical revenues, including retail, food and beverage, and duty-free, accounted for 43.3 per cent of total airport revenues in the region in 2023, the highest share globally. Operating non-aeronautical revenue per passenger also peaked in the Middle East at $16.36, well ahead of Europe and North America.
The report shows that 56 per cent of surveyed airports are now generating higher commercial revenues than in 2019, even where traffic recovery remains uneven. A further 44 per cent expect commercial revenue per passenger to rise over the next year, underscoring growing confidence in non-aeronautical income streams.
Satisfaction drives spending
Passenger satisfaction has emerged as a critical driver. According to the study, a 1 per cent increase in passenger satisfaction leads to a 1.5 per cent rise in non-aeronautical revenue. Factors such as efficient terminal layouts, ease of access, service quality and reduced friction are increasingly linked directly to spending levels.
Regional dynamics, however, differ markedly. Asia-Pacific remains a high-volume, mid-margin market, fuelled by domestic travel and a growing middle class. The Middle East, by contrast, operates as a moderate-volume but high-yield market, optimised for premium international travellers and transfer passengers – a model that aligns closely with major UAE hubs.
Duty-free anchors revenues
Duty-free retail has emerged as the financial backbone of airport commercial performance across the region. In the Middle East, duty-free accounts for a significant share of total airport sales: 38 per cent in Qatar, 36 per cent in the UAE, 34 per cent in Bahrain, and 31 per cent in Saudi Arabia and Oman. Revenue dependence is even more pronounced, with duty-free contributing around 60 per cent of airport revenues in Saudi Arabia and Qatar, and more than 50 per cent across the UAE, Bahrain and Oman.
Consumer preferences also reveal regional contrasts. Middle East duty-free baskets are dominated by confectionery and perfumes, while Asia-Pacific and Oceania hubs skew more premium, with alcohol playing a larger role.
With airports across Asia-Pacific and the Middle East expected to invest $240 billion over the next decade, the study suggests that future success will depend less on expanding terminals and more on understanding traveller demographics, behaviour and spending motivations.
