Flights - Chile | Statista Market Forecast

Flights - Chile

Chile

Highlights

The Flights market in Chile is expected to experience a significant increase in revenue, with projections estimating a revenue of US$2.13bn in 2024.
This revenue is expected to grow at an annual rate of 5.77% (CAGR 2024-2029), resulting in a projected market volume of US$2.82bn by 2029.
The number of users in this market is also expected to rise to 4.07m users by 2029, with a projected user penetration of 16.7% in 2024 and 20.5% by 2029.
Moreover, the average revenue per user (ARPU) is expected to be US$648.30.
In Chile's Flights market, an estimated 93% of total revenue will be generated through online sales by 2029.
It is interesting to note that in global comparison, United States is projected to generate the highest revenue in this market, with an estimated revenue of US$143bn in 2024.
Chilean airlines are expanding their routes to cater to the growing demand for domestic travel within the country.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Flights market in Chile has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: Chilean travelers have shown a growing preference for air travel, which has contributed to the development of the Flights market. This can be attributed to several reasons, including the increasing affordability of airfares, the convenience and speed of air travel, and the expansion of flight routes and destinations offered by airlines operating in Chile. Additionally, the rise of low-cost carriers has made air travel more accessible to a wider range of consumers, further fueling the demand for flights in the country.

Trends in the market: One of the notable trends in the Flights market in Chile is the increasing popularity of domestic travel. Chile is a geographically diverse country with a wide range of attractions, from the stunning landscapes of Patagonia to the vibrant city life of Santiago. As a result, more Chileans are choosing to explore their own country, leading to a higher demand for domestic flights. This trend is expected to continue as travelers seek to discover more of what Chile has to offer. Another trend in the Flights market is the growing number of international tourists visiting Chile. The country has become increasingly popular as a tourist destination, attracting visitors from all over the world. The diverse natural beauty, rich cultural heritage, and unique experiences offered by Chile have made it a top choice for travelers. This has led to an increase in international flights to and from Chile, as airlines expand their routes to cater to the growing demand.

Local special circumstances: Chile's geographical location presents unique challenges and opportunities for the Flights market. The country is long and narrow, stretching over 4,300 kilometers from north to south. This means that air travel is often the most efficient way to travel within the country, especially for long distances. The demand for flights is particularly high for routes connecting major cities such as Santiago, Valparaíso, and Concepción. Furthermore, Chile's economy has been growing steadily in recent years, leading to an increase in disposable income among the population. This has allowed more Chileans to afford air travel, contributing to the growth of the Flights market. Additionally, the government has been actively promoting tourism in Chile, investing in infrastructure and marketing campaigns to attract more visitors. These efforts have further boosted the demand for flights in the country.

Underlying macroeconomic factors: The Flights market in Chile is influenced by several macroeconomic factors. The stability of the Chilean economy, low inflation rates, and a favorable business environment have attracted foreign investment and contributed to economic growth. This has had a positive impact on the Flights market, as both domestic and international travelers have more confidence in the country's economy and are more willing to spend on air travel. Furthermore, the government has implemented policies to promote air connectivity and attract international airlines to operate in Chile. This has led to increased competition among airlines, resulting in more affordable airfares and a wider range of flight options for consumers. The government's commitment to improving airport infrastructure and expanding flight routes has also played a significant role in the development of the Flights market in Chile. In conclusion, the Flights market in Chile is experiencing significant growth due to customer preferences for air travel, the increasing popularity of domestic and international tourism, unique local circumstances, and favorable macroeconomic factors. These factors are expected to continue driving the growth of the Flights market in Chile in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of flights.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.