Flights - NAFTA | Statista Market Forecast

Flights - NAFTA

NAFTA

Highlights

It is projected that the Flights market in NAFTA will generate a revenue of US$163.40bn by 2024.
Moreover, the market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 2.57%, resulting in a projected market volume of US$185.60bn by 2029.
In terms of user base, the Flights market is expected to have 126.00m users users by 2029.
The user penetration is anticipated to increase from 20.5% in 2024 to 24.0% by 2029.
Additionally, the average revenue per user (ARPU) is estimated to be US$1.56k.
It is projected that 92% of the total revenue generated by the Flights market will be through online sales by 2029.
Finally, in comparison to other countries, United States is expected to generate the highest revenue of US$143bn in 2024.
The NAFTA region is experiencing a surge in domestic air travel as consumers seek convenient and affordable alternatives to ground transportation.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Flights market in NAFTA has been experiencing significant growth and development in recent years. Customer preferences in the Flights market in NAFTA have been shifting towards more affordable and convenient options. With the rise of low-cost carriers and online travel agencies, customers are now able to find and book flights at lower prices and with greater ease. This has led to increased competition among airlines, as they strive to attract and retain customers by offering more competitive prices and improved services. Additionally, customers are increasingly looking for personalized and unique travel experiences, leading to the growth of niche airlines and travel companies that cater to specific customer needs and preferences. Trends in the market include the increasing popularity of budget airlines, which offer lower fares by providing fewer amenities and services. This has led to a decrease in the market share of traditional full-service airlines, as customers prioritize cost savings over additional services. Another trend is the growth of online travel agencies, which provide customers with a one-stop shop for booking flights, accommodation, and other travel-related services. These online platforms offer convenience and often provide customers with discounted rates, further driving the demand for online booking. Local special circumstances in the Flights market in NAFTA vary across the three countries. In the United States, the market is highly competitive, with a large number of airlines vying for market share. This has led to intense price competition and a focus on cost-saving measures, such as reducing overhead costs and increasing operational efficiency. In Canada, the market is characterized by a smaller number of airlines and higher fares due to a lack of competition. However, the government has introduced measures to promote competition and lower fares, such as allowing foreign airlines to operate domestic flights. In Mexico, the market is dominated by a few major airlines, which has limited competition and led to higher fares. Underlying macroeconomic factors driving the development of the Flights market in NAFTA include economic growth, rising disposable incomes, and increasing tourism. As the economies of the three NAFTA countries continue to grow, more people have the financial means to travel by air. Additionally, the tourism industry has been expanding, with more people traveling for leisure and business purposes. This has led to increased demand for flights and has incentivized airlines to expand their routes and services. Overall, the Flights market in NAFTA is evolving to meet the changing preferences and demands of customers. The rise of low-cost carriers and online travel agencies, along with macroeconomic factors such as economic growth and increasing tourism, are driving the growth and development of the market.

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.