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Flights - LATAM

LATAM

Revenue in the Flights market is projected to reach US$40.24bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.64%, resulting in a projected market volume of US$48.12bn by 2029.
In the Flights market, the number of users is expected to amount to 108.20m users by 2029.
User penetration is projected to be 13.7% in 2024 and 16.5% by 2029.
The average revenue per user (ARPU) is expected to amount to US$0.46k.
In the Flights market, 91% of total revenue will be generated through online sales by 2029.
In global comparison, most revenue will be generated in the United States (US$143bn in 2024).

Key regions: India, China, Europe, Indonesia, Thailand

Market

Region

Region comparison

Currency

Analyst Opinion

The Flights market in LATAM has been experiencing significant growth and development in recent years.

Customer preferences: Customers in LATAM have shown a strong preference for affordable flights and convenient travel options. They are increasingly looking for low-cost carriers and budget airlines that offer competitive prices and flexible booking options. This shift in customer preferences has led to the rise of budget airlines in the region, which have been able to capture a significant market share by offering affordable fares and a wide range of destinations.

Trends in the market: One of the prominent trends in the Flights market in LATAM is the increasing competition among airlines. This competition has led to a decrease in ticket prices and an increase in the number of flights available to customers. Airlines are constantly looking for ways to attract customers and differentiate themselves from their competitors. As a result, customers in LATAM have access to a wide range of flight options and can choose the one that best suits their needs and budget. Another trend in the market is the growing popularity of online booking platforms. Customers in LATAM are increasingly using online platforms to book their flights, as it offers convenience and flexibility. Online platforms also provide customers with the ability to compare prices and choose the best deal. This trend has led to an increase in the number of online travel agencies and flight comparison websites in the region.

Local special circumstances: The Flights market in LATAM is influenced by various local special circumstances. One of the key factors is the geography of the region. LATAM consists of multiple countries with diverse landscapes and tourist attractions. This has led to an increase in domestic and international travel within the region. Customers in LATAM are keen to explore different destinations within their own countries and also travel to neighboring countries for leisure and business purposes. Another special circumstance is the presence of popular tourist destinations in LATAM. Countries like Brazil, Mexico, and Argentina attract a large number of international tourists each year. This has created a demand for flights to these destinations, leading to increased competition among airlines and a wider range of flight options for customers.

Underlying macroeconomic factors: The growth of the Flights market in LATAM can also be attributed to underlying macroeconomic factors. The region has experienced steady economic growth in recent years, leading to an increase in disposable income among the middle class. This has resulted in a higher demand for travel and tourism, both domestically and internationally. Furthermore, governments in LATAM have been actively promoting tourism and investing in infrastructure development. This has improved connectivity and accessibility, making it easier for customers to travel within the region. The combination of economic growth and government initiatives has created a favorable environment for the growth of the Flights market in LATAM. In conclusion, the Flights market in LATAM is developing at a rapid pace due to changing customer preferences, increasing competition among airlines, the popularity of online booking platforms, local special circumstances, and underlying macroeconomic factors. As the region continues to grow and attract more tourists, the Flights market is expected to further expand and evolve in the coming years.

Methodology

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.