Fluctuating demand from major markets has led to volatile industry sales
London, United Kingdom (PRWEB) October 13, 2012
The Chartered Passenger Flights industry transports passengers on non-scheduled routes to domestic and international destinations. According to IBISWorld industry analyst Caroline Finch, “the industry is dominated by three major players, who are all involved in other areas of the travel industry such as the provision of all-inclusive tours”. Although the industry has the image of providing tailored travel services for the super wealthy, a large share of industry revenue is generated by the transport of customers to their holiday destination as part of a package. IBISWorld forecasts that industry revenue will contract at a compound annual rate of 1.0% over the five years through 2012-13. Revenue will continue its slow recovery by growing an estimated 2.5% over 2012-13 to total £4.09 billion. The limited recovery will stem largely from growth in demand for all-inclusive holidays, of which charter flights are a component. The weakening euro is expected to increase the competitiveness of international destinations.
The industry is expected to make a profit recovery over the next five years as the three major players that dominate the industry protect their margins by pushing wage expense down. However, revenue is expected to stagnate. IBISWorld estimates industry revenue will decline marginally over the five years through 2017-18. A general improvement in economic conditions is expected to boost demand for air travel. Finch adds, “competition in the industry is expected to intensify as companies increase their capacity and focus on marketing unique package products through the online and high street outlets of their related entities”. External competition is expected to increase as major airlines expand the number of routes to remote destinations. These tough operating conditions are likely to result in more merger and acquisition activity and the exit of some companies from the industry.
The Chartered Passenger Flights industry has a high level of market share concentration, with the top four players accounting for over 97% of sales. Major companies include Thomson Airways, Thomas Cook Airlines and Monarch Airlines.
For more information on the Chartered Passenger Flights industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Companies in the industry provide air transport services on an irregular or non-scheduled basis for passengers - also referred to as a charter arrangement. This includes domestic and international flights.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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