Travel is one of the fastest -growing sectors, with bookings hitting close to $1.6 trillion in 2017 in which less than 20% of the world populations has set foot on an airplane, it is going to increase dramatically.
As per IATA expectation, it is going to reach 7.8 billion passengers who would be traveling by air by 2036, a count which is nearly doubling 4 billion in count expected this year. Isn’t this thought-provoking and the most fascinating part is India is one of the fastest growing domestic aviation markets for the third straight year by IATA report with a measure of passenger volumes rose by 7.6% in 2017, followed by China.
- From where the air growth is going to increase
As per the same IATA research, most of the air travel passengers are going to raise from Asia specifically from China, India, and Indonesia. China is expected to overtake the US as the largest passenger aviation market in the world around 2024, by which time India is also expected to jump ahead of the UK for the number.
Reasons why these states are expected:
- An increase of Low-Cost carriers
As per the report released by ICAO, low-cost carriers transported more than 1 billion passengers for the first time in 2016 and accounted for 28% of air traffic, For the moment, they have created enough pressure in certain markets to bring airfares down.
According to IATA, Senior Economist David Oxely “A larger flying population with lower incomes mean that for airlines to succeed, they need to offer a cheaper entry point into the market. They’re not going after the wealthy people in the region who can already afford to fly and do fly. They will try to grow the base market.”
While he also noted that the low airfares we have seen in recent years are primarily a result of the sudden increase in competition in the market, he does believe we will see a continuation of this trend, whether fares continue to fall as sharply as they have so far.
- The other essential reason
Picking a low-cost model
More ways to pay for tickets
As per the prediction, the world will need 41,300, this will also increase the manufacturing count
Alliance with airlines
AI and IOT technology emerging techniques to attract customers.
All these details will be explained in the continuous blog of this, so stay tuned to know more information about the fastest growing sector and what all there’s new to evaluate in the aviation industry.
After a decade of underwhelming performance, large US carriers are turning things around, and now look to define the future of flying with key infrastructure and technology investments. The key themes for 2018 center around low-cost cost competition, air traffic reform, cabin segmentation, and leveraging maturing technology such as AI and Internet of Things (IoT) to redefine a new experience.