China Forecast To Become The World's Largest Air Travel Market By 2020 | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Airborne Unlimited-
Monday

Airborne-Unmanned w/AUVSI-
Tuesday

Airborne Unlimited-
Wednesday

AMA Drone Report-
Thursday

Airborne Unlimited-
Friday

Airborne On ANN

Airborne Unlimited--01.13.20

Airborne UnManned--
01.21.20

Airborne Unlimited--01.22.20

AMA Drone Report--01.23.20

Airborne Unlimited--01.17.20

Airborne-YouTube

Airborne Unlimited--01.13.20

Airborne UnManned--
01-21.20

Airborne Unlimited--01.22.20

AMA Drone Report--01.23.20

Airborne Unlimited--01.17.20

Wed, Dec 19, 2018

China Forecast To Become The World's Largest Air Travel Market By 2020

Growth Coming Despite Anticipated Economic Slowdown

Despite its recent economic slowdown, air travel demand in China remains high and the country is expected to become the world's largest air travel market by 2020, according to North Carolina-based procurement intelligence firm Beroe Inc. Meanwhile, global airline prices are expected to grow by 2.6 percent with an increase in oil prices, competitive pressure from the shortage of pilots, potential trade wars, and increasing fare segmentation to improve yield.

"[The] Chinese economy witnessed a recent slowdown, but is expected to remain the largest business travel market, with a sustained high growth rate. However, growing trade tensions between China and the U.S. could potentially impact the business travel between the two countries," Beroe Inc's Valekumar Krishnan, Practice Head -- APAC and Middle East.

The global market for corporate travel is anticipated to grow at a CAGR of 5-5.5 percent to reach a net value of $1.7 trillion by 2021. The travel and expense market is also projected to reach $2.5 billion by 2020, with Concur expected to be the leading market player. Factors such as a need for enhanced operational efficiency, visibility, and transparency are the major growth drivers, the report suggested.

Buyers can now directly engage with airlines, hotels, and car agencies and can either utilize TMCs (Travel Management Companies) exclusively for reporting or for reservations. Travel companies are also focusing on supplier negotiation and contract management to ensure better consumer experience. Industry best practices such as automated T&E processing, mobile accessibility, and booking-based travel itineraries have been adopted by chief industry players.

Key Findings:

  • Many air carriers are now modernizing their fleet to incorporate more fuel-efficient aircraft.
  • Increase in environmental concerns are incentivising car-rental agencies to add eco-friendly cars.
  • TMCs are expanding their geographical presence by entering new markets, either through direct engagement or through partnership.
  • Car rental companies are facing strict competition from companies such as Uber and Lyft, as they offer easier and more flexible tariff rates to travelers.
  • Air travel market in North-America is expected to experience a price increase of 1.8 percent in the near future.
  • Most large companies are deploying travel and expense management software to manage and audit expenses related to travel and entertainment.
  • Mobile technology has had a significant impact on the global corporate travel industry, fueled by an increased smartphone adoption and internet penetration.

Beroe's unique business model involves providing market intelligence and analytics to the procurement teams of businesses across the globe. Beroe leverages its deep domain expertise in 300 + categories across 14 industries. It boasts of more than 80 of the Fortune 500 companies as its clients.

(Source: Beroe Inc. news release)

FMI: www.beroeinc.com

Advertisement

More News

Airborne-Unmanned 01.21.20: Apple Lobbyist, Camcopter S-100, Autel 8K Evo II

Also: Super Bowl LIV Restrictions, Electric Silent Falcon E1, Phantom Drone Returns, 2020 AUVSI XCELLENCE Apple has hired an attorney specializing in drone and aviation law to act >[...]

Airborne-Unmanned 01.21.20: Apple Lobbyist, Camcopter S-100, Autel 8K Evo II

Also: Super Bowl LIV Restrictions, Electric Silent Falcon E1, Phantom Drone Returns, 2020 AUVSI XCELLENCE Apple has hired an attorney specializing in drone and aviation law to act >[...]

Airborne 01.17.20: A/C Registration Warning, iFly GPS Update, Boeing's Net Loss

Also: NBAA Updates Jet Resource, New Virgin Galactic COO, Heathrow Anti-Drone System, Gogo And Hispasat Deal EAA is warning the aviation community to regard any solicitation they m>[...]

AMA Drone Report 01.16.20: Remote ID Opposition, DRL Tryouts, Karma Updated

Also: Super Bowl LIV Regs, Drone-Based Home Security, Unlawful Drone Ops, Red Cat Acquisition With the recent announcement of a Model Aircraft Political Action Committee and dozens>[...]

Airborne 01.22.20: SpaceX Abort Test, Airport Attack, Airbus Vahana

Also: Production Airlander 10, Rhode Island AirShow, Sinclair Av Training Ctr, Dream Chaser NASA and SpaceX completed a launch escape demonstration of the company's Crew Dragon spa>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2020 Web Development & Design by Pauli Systems, LC