Flights - Guatemala

Guatemala

Highlights

By 2024, the Flights market in Guatemala is predicted to generate a revenue of US$350.40m.
According to the projections, the revenue is expected to grow annually at a rate of 9.1% percent from 2024 to 2029, which will lead to a market volume of US$408.80m by 2029.
It is estimated that the number of users in this market will reach 2.20m users by 2029.
The user penetration rate is expected to increase from 9.1% in 2024 to 11.1% by 2029.
The average revenue per user (ARPU) is predicted to be US$210.80.
Online sales are expected to contribute 84% of the total revenue in the Flights market by 2029.
In global comparison, United States is projected to generate the highest revenue of US$143bn in 2024.
The demand for domestic flights in Guatemala is increasing due to the country's growing tourism industry and improved infrastructure.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Flights market in Guatemala is experiencing significant growth and development in recent years.

Customer preferences: Customers in Guatemala are increasingly opting for air travel as their preferred mode of transportation. This can be attributed to several factors. Firstly, air travel offers convenience and time savings compared to other modes of transportation. With the increasing availability of low-cost carriers and competitive airfare prices, more Guatemalans are able to afford air travel. Furthermore, the growing middle class in Guatemala has led to an increase in disposable income, allowing more individuals to afford air travel for both business and leisure purposes.

Trends in the market: One of the key trends in the Flights market in Guatemala is the expansion of domestic and international routes. Airlines are constantly adding new destinations to cater to the growing demand for air travel. This expansion is driven by the increasing number of tourists visiting Guatemala, as well as the country's growing economy and business opportunities. Additionally, airlines are investing in modernizing their fleets and improving their services to attract more customers. This includes offering in-flight entertainment, comfortable seating, and better customer service. Another trend in the Flights market in Guatemala is the rise of low-cost carriers. These airlines offer affordable airfare options, making air travel more accessible to a wider range of customers. Low-cost carriers have been successful in attracting price-sensitive customers who are willing to compromise on certain amenities in exchange for cheaper flights. This has led to increased competition in the market, forcing traditional airlines to lower their prices and improve their services to remain competitive.

Local special circumstances: Guatemala is a popular tourist destination known for its rich cultural heritage, natural beauty, and archaeological sites. The country attracts a significant number of international tourists, especially from North America and Europe. This has led to an increase in demand for flights to Guatemala, both from major international hubs and regional airports. Additionally, the government of Guatemala has been actively promoting tourism and attracting foreign investment, which has further contributed to the growth of the Flights market in the country.

Underlying macroeconomic factors: The growing economy of Guatemala is a key driver of the development in the Flights market. The country has experienced steady economic growth in recent years, resulting in an increase in disposable income and consumer spending. This has led to a greater demand for air travel as more individuals can afford to travel for both business and leisure purposes. Additionally, the government has implemented policies to attract foreign investment and promote tourism, which has further boosted the Flights market in Guatemala. In conclusion, the Flights market in Guatemala is experiencing significant growth and development due to customer preferences for air travel, the expansion of domestic and international routes, the rise of low-cost carriers, the country's status as a popular tourist destination, and the underlying macroeconomic factors such as economic growth and government initiatives. As the market continues to evolve, airlines will need to adapt to changing customer preferences and market dynamics to remain competitive in Guatemala.

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.