The air travel services market was valued at around $727 billion and is anticipated to reach revenues of $900 billion by 2020
Procurement market intelligence analysts have announced the top five leading suppliers for the air travel services in their latest research report. APAC and the Middle East are witnessing a sharp increase in international travel with growing focus on higher frequency routes. China, India, Indonesia, Japan, and Brazil are expected to be the five fastest growing markets in terms of passenger traffic.
This category spend intelligence report is based on the synthesis, analysis, and interpretation of information about the global air travel services market collected from specialized sources. The analysts have derived insights using a mix of primary and secondary research with an aim to provide a holistic picture of the market.
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Competitive vendor landscape
Air travel service providers cater to diverse service requirements including corporate travel, chartered flights, and bulk volume offers for group travel for different industry segments. Vendors in the market are overcoming lack of differentiation by incorporating digital technologies to improve customer experience and offer real-time data monitoring and reporting tools. Such advancements will help buyers gain visibility on category spend and optimize expenses. Suppliers are also providing buyers with travel management solutions to minimize risks related to managing multiple suppliers. A few areas where the vendors are focusing to enhance customer experience include high quality on-board services, technological integration, and engagements with one-stop shops for cost savings.
According to Angad Singh, a category specialist at Technavio, “Airlines are increasing their passenger capacities to cater to the growing demand and decreasing airfares. They are increasingly forging strategic alliances to extend their reach. Several airlines are also offering additional benefits, such as buyer brand recognition, preferential rates, frequent flyer discounts, dedicated account managers, and support teams to strengthen their service portfolios.”
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Top five suppliers in the air travel services market space
American Airlines Group
American Airlines is the market leader with the domestic travelers occupying around 77% of its passengers. The company operates around 6,700 flights daily and covers about 350 destinations across 50 countries. This airlines group is the founding member of the One World Alliance, the members and members-elect of which run 14,250 flights every day to cross 1,000 destinations across 150 countries.
Key services of American Airlines Group include domestic/international flights, travel deals, corporate travel, business travel programs, and loyalty programs.
Delta Airlines
Delta Airlines is the largest airlines in terms of passengers and the go-to airline for over 129,000 passengers. This company is the second most-preferred airline for the American passengers. It runs a fleet of more than 800 aircrafts that cross 324 destinations through 53 countries. Delta Airlines, and its collaborating partner at Sky Team Global Alliance, operates around 15,000 flights daily to cover more than 600 destinations across 119 countries.
Key services of Delta Airlines include domestic/international flights, shuttle services, corporate travel, business travel programs, and loyalty programs.
United Continental Holding
United Continental Holding runs around 4,654 flights regularly to cross over 336 destinations across 56 countries. It was the first airline to offer satellite-based Wi-Fi on both domestic and international flights. In 2015, the company’s travel application for handheld devices was nominated as a Weblee Award honoree and it received the Digital Edge25 Award for adopting digital technologies to improve business value.
Key services of United Continental Holding include domestic/international flights, corporate travel, business travel programs, and loyalty programs.
Deutsche Lufthansa
Deutsche Lufthansa is considered to be the largest airline in Europe, in terms of overall passenger volumes as well as fleet size. The airline uses a fleet of around 280 aircraft to cover 18 destinations in Europe and 197 destinations worldwide. Lufthansa is one of the founding members of the Star Alliance, which is the world’s largest alliance of airlines. In 2015, Deutsche Lufthansa was awarded as the best airline in Western Europe at the World Airline Awards.
Key services of Deutsche Lufthansa include domestic/international flights, flights and hotel accommodation, corporate travel, private jets, traveller miles and rewards, and air freight, catering, and airline IT.
Air France-KLM
Air France-KLM runs around 2,200 flights daily to cross over 316 destinations across 115 countries. The company has a major presence in the low-cost airlines segment in Europe and the Mediterranean region. It operates one of the most modern fleets with an average aircraft age of around 11 years. Air France is a member of the Sky Team Airline Alliance, along with about 20 other major airlines, such as Delta Airlines, Saudi, and Air Europa.
Key services of Air France-KLM include domestic/international flights, corporate travel, traveller miles and rewards, air catering, and MRO.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Air Travel Services – Procurement Market Intelligence 2016’.
