As a result of increasing air traffic, demand for airport shuttle services is forecast to expand
Los Angeles, CA (PRWEB) December 16, 2011
Competitive trends from the past five years will dominate the Airport Shuttle Operators industry over the five years to 2016. According to IBISWorld, growth will be aided by a more stable economic recovery, which is expected to increase air travel. From 2006 to 2011, the number of passengers boarding flights in the United States is projected to grow at an average annual rate of 3.5% to about 879.2 million. As a result of increasing air traffic, demand for airport shuttle services will likely expand. However, revenue growth will be limited by ongoing competition from external factors, such as travelers choosing to drive to and from the airport or opting for public transportation. Over the five years to 2016, industry revenue is projected to rise at an average yearly rate of 3.0% to $681.8 million. For this reason, industry research firm IBISWorld has added a report on the Airport Shuttle Operators Industry to its growing Travel Services report collection.
The Airport Shuttle Operators industry developed as air travelers sought cheaper and more convenient ways to reach airports and their final destinations. Urban sprawl, greater traffic congestion and more stringent security measures that have increased check-in and screening times have encouraged travelers to seek alternative transportation methods to reduce travel time. Airport shuttles provide the convenience of on-demand transportation service providers, such as taxis, while maintaining cost competitiveness through shared-rides and strategic partnerships with airports. As a result, the Airport Shuttle Operators Industry has grown over the past decade, though it still depends on upstream demand for air travel. Market share concentration has increased over the past five years, as Veolia Environnement SA acquired SuperShuttle, subsequently expanding its operations during the period. VE operates in the industry through its transportation segment (VE Transport), which includes airport hub services and management of regional and national public transit systems, including rail transport. Other industry firms typically operate on a regional basis and do not offer the coverage of the largest major player. According to IBISWorld, other firms that operate in the industry include Prime Time Shuttle, headquartered in Southern California, and The Go Group LLC, headquartered in Chicago, IL, is a franchisor of airport shuttles in North America and Europe.
The Airport Shuttle Operators industry experienced some turbulence during the past five years, along with a decrease in air passengers due to the negative effects of the recession on consumers and companies. When disposable incomes declined along with rising unemployment, air travel suffered a significant drop, and demand for related transportation services also fell. Furthermore, the drag on corporate profit during the financial crisis and subsequent recession forced companies to slash spending on business travel. In 2010, some economic recovery led to a rebound in air travel, improving industry conditions.
According to IBISWorld analyst, Brian Bueno, over the five years to 2016, a more stable economic recovery in the United States will likely increase air travel, supporting industry growth. Nevertheless, competitive trends from the previous five years will continue to dominate the industry. "As a result of increasing air traffic, demand for airport shuttle services is forecast to expand," says Bueno. However, revenue growth will be limited by ongoing competition from external factors, such as travelers choosing to drive to and from the airport or opting for public transportation. Over the five years to 2016, industry revenue is anticipated to rise at an average yearly rate of 3.0% to $681.8 million.
For more information, including latest Industry trends, statistics, analysis and market share information, download the full report from IBISWorld on the Airport Shuttle Operators industry
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