The global air travel service market was valued at around USD 727 billion and is expected to surpass USD 871 billion by 2020.
Procurement market intelligence analysts have announced the launch of their latest market research report on air travel services for the period 2016-2020. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the air travel services market during the forecast period. Some of the top vendors listed in this industry analysis include American Airlines Group, Delta Airlines, United Continental Holding, Deutsche Lufthansa, and Air France-KLM.
In terms of geographical analysis, the Americas dominated the global market for air travel services by accounting for around 41% of the overall market share during 2015.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “Airlines across the globe are adopting advanced technological solutions to meet growing demand for more personalized experiences and on-the-go traveler services from customers. AeroCRS, for example, is a cloud-based system that allows service providers to gain complete visibility on airline operations”
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The new procurement market intelligence report analyzes some of the key cost drivers and trends affecting the supply landscape.
Low crude oil prices
Oil constitutes over 35% of the cost structure of airlines. The decrease in global crude oil prices enables airlines to provide services at lower costs. The fall in the prices of air travel services is propelling passenger traffic; thus, leading to the growth of the global air travel services market.
Increased spend by corporate travelers
Increased spending on air travel by corporates is the fundamental driving force behind the growth of the air travel services market. The trend, projected to continue through the forecast period, is expected to add to the global demand for air travel services.
Growth of hospitality industry
The hospitality sector plays a key role in the growth of the global air travel services market. The growth of the hospitality industry, projected at CAGR of almost 5% through 2017, is expected to reflect positively on the demand for air travel services in the coming years.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Air Travel Services – Procurement Market Intelligence 2016’.
