What are the factors that drive the demand for air travel?
The demand for air travel has risen in the past years, as more people prefer this kind of travel owing to convenience and reliability. There are various factors that have contributed to this rise, which is expected to double in the next two decades around the globe. The first factor that has contributed to the rise in demand for air travel is low airfares owing to an increase in the number of air travel operators. This then means that more people can afford to pay air travel expenses. The lower fares are coupled with higher living standards, which translate to an improved ability to afford air travel (Cook and Billig, 2018). Additionally, the rise in demand for air travel is related to anticipation that the world gross domestic product is set to recover. In this regard, international trade will improve which will necessitate the need for faster and reliable traveling options.
What is the prospect for long-term travel growth?
Owing to the rise in demand for air travel, airlines around the world are keen on tapping into the prospects of long-term travel growth. The International Air Transport Association (IATA) establishes that going by the current trends shows that the number of airline passengers will rise to 8.2 billion by 2037 (2018). The doubling of air travel demand means that there is a possibility of an increase in jobs by 100 million across the globe something that is positive future prospect. IATA establishes that there is going to be an Eastward shift in this regard as the Asia-Pacific region will contribute more than half of the passengers in the next 20 years. According to Reed (2019), China will edge out the US to become the largest aviation market with India following the US in the third place. The association is concerned that restrictive and tough protectionist laws may negatively affect this growth. It is for this reason, that the world should have policies that are more effective to ensure that the air travel agencies handle the rising demand when it comes.
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References
Cook, G. N., & Billig, B. G. (2018). Airline Operations and Management: A Management Textbook . New York: Routledge.
International Air Transport Association. (2018, October 24). IATA Forecast Predicts 8.2 billion Air Travelers in 2037. Retrieved on 21 September 2019 from https://www.iata.org/pressroom/pr/Pages/2018-10-24-02.aspx
Reed, D. (2019, August 29). Global Demand for Air Travel has reached the 50% Level, and it likely won't slow up. Forbes . Retrieved on 21 September 2019 from https://www.forbes.com/sites/danielreed/2019/08/29/global-demand-for-air-travel-has-reached-the-50-level-and-it-likely-wont-slow-up/#2f69476d43f9
