Research Support Specialist, USA
The global flights market size is expected to reach USD 208.1 billion by 2028, according to a new report by Million Insights. It is expected to expand at a CAGR of 4.5% from 2021 to 2028. The market is driven by significant growth in Asia Pacific and the Middle East. Rising disposable income, increasing spending on tourism, and the growing middle-class population are driving the market demand.
Expansion and spending on the aviation industry by various governments are facilitating heightened and easy accessibility of the airports and services, which also fuels the growth of the market. For instance, Beijing Daxing International Airport opened on September 26th, 2019 is one of the biggest airports in the world. In addition, some airports are under construction for further expansion, which is expected to drive the market. For instance, New Sharjah International Airport and Kuwait International Airport expansions are under process in the Middle East.
Like the travel and tourism industry, the flights industry witnessed a slump as a result of the outbreak of the Covid-19 pandemic and restrictions. International travel took a huge toll as many governments banned international tourists and closed international airports. Many airlines were grounded for most of the time in 2020 and remained uncertain due to the emerging new strains of Covid-19. The market is expected to make a slow recovery in the coming years and is mainly gaining momentum due to the resumption of domestic travel and domestic flights.
The international type segment is anticipated to register the highest CAGR of 6.7% from 2021 to 2028. In the coming years, international travel and tourism are expected to witness significant momentum post-pandemic. In addition, international flights, which were restricted in 2020, are expected to resume the operation. With the increasing vaccination process, the segment is poised to regain its share in the years to come.
The direct channel segment dominated the market with a revenue share of over 50.0% in 2020. This segment comprises airline websites and airline mobile apps that are used to book air tickets directly. Consumers are more inclined towards using direct channels because of the benefits such as loyalty programs and mileages. Consumer behavior also suggests that the OTA channel is used to find out more advantageous flights offered by different airlines and then book on the airline website directly.
Asia Pacific is projected to register a significant CAGR of 5.1% from 2021 to 2028. The market growth is attributed to the increasing percentage of Chinese tourists in the international market. The expansion of the aviation industry and the construction of new airports or the development of the existing airports are likely to support the regional market growth. Furthermore, increasing disposable income, swelling middle-class population, and escalating spending on tourism are expected to drive the market over the forecast period.
The report “Flights Market Size, Share & Trends Analysis Report By Type (Domestic, International), By Distribution Channel (Direct Channel, OTA, Offline/Retail Agency, TMC), By Region, And Segment Forecasts, 2021 - 2028” is available now to Million Insights.
Million Insights has segmented the global flights market on the basis of type, distribution channel, and region:
Flights Type Outlook (Revenue, USD Million, 2017 - 2028)
Flights Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)
Flights Regional Outlook (Revenue, USD Million, 2017 - 2028)