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Business Destinations Adding Growth to the Low-Cost Airline Industry: Ken Research

Posted on 26 December 2016 by KenResearch Automotive, Transportation and Warehousing,

Ken Research announced the recent publication on The Global Low-Cost Airline Market to 2020,” which offers insights on the global low-cost airlines industry, analyzing market data and provides historic and forecast revenue of global low-cost airlines market covering 40 countries combining with the detailed region-wise  such as Americas, Asia-Pacific, Europe, Middle East & Africa of low-cost airlines' key performance indicators such as the number of seats available and seats sold, load factor, average revenue per passenger, total revenues, revenue generating passenger kilometres and passenger kilometres available for the historic 2011-2015 and forecast 2016-2020 periods. This publication serves best to individuals seeking information to make strategic business decisions and also who need the understanding of the demand dynamics within the industry to study the trends and opportunities better.


Global political changes


Global politics is an imperative factor in international travel. As countries undergo change, uncertainty or in some cases such as violence, travel can slow or cease altogether. For instance, Egypt long was a fantasy destination for tourists across the globe. The revolutions of 2011 changed that, and tourism to that area dropped as an outcome. Major political events occur around the globe, and the travel industry must work accordingly. Instead of Egypt, travel marketing expanded around destinations such as Jordan and Israel, which also feature ancient historical sites and Middle Eastern settings.

Government Investment


The funds that regional, state and national governments set apart for tourism and travel marketing plays a vital role in the amount and the direction of that marketing across the globe. Amidst a large portion of travel marketing is funded by private companies such as hotel chains and airlines, it's also driven by government entities who wish to bring in traffic. The annual budgets as determined by politicians dictate the amount to be spent, while the tourism boards establish how. Economic successes can lead to elevated or decreased investment depending on the point of view of the locality. Some governments wish to bank of tourism for continued success, while others hope that investment in tourism will not be worth it.


Recent Trends


The US is the largest market across the world in terms of revenues and seats and the number of passengers carried total were 216.6 million. Spain and the UK held second and third position in terms of volume sold, amidst Japan was the fastest-growing market at a CAGR of 33.7% during the historic period 2011-2015. This is followed by Switzerland accounting for highest load factor in 2015, and France and Mexico positioning among 10th largest volume sold airlines markets.

Lost cost carriers are incrementally gaining a foothold in the global aviation industry and their growth is not driven only by leisure passengers. Today, LCCs are also offering direct flights to business destinations. For instance, Wizz Air and Ryanair run flights from London to Vilnius, the economic hub of Lithuania and one of the biggest financial centers of the Baltic States. Europe's two leading LCCs in terms of seats sold Ryanair and Easyjet are also making profits. In 2015, Ryanair 101.4 million sold more seats than IAG 95 million, which owns Iberia, British Airways, Vueling, and Aer Lingus

LCCs in general, do not provide any more services, which increase the cost; however, the trend is changing. For instance, flydubai offers free meals on flights from Prague to Dubai



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Ankur Gupta, Head Marketing & Communications