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Flights - Argentina

Argentina

In Argentina, the Flights market is predicted to experience a substantial growth in revenue.
It is estimated that by 2024, the revenue will reach US$7.14bn, with a projected market volume of US$8.43bn by 2028, resulting from an annual growth rate of 4.24%.
The number of users in this market is expected to amount to 13.04m users by 2028, with a user penetration rate of 24.5% in 2024 and 27.6% by 2028.
The average revenue per user (ARPU) is expected to amount to US$0.63k.
Moreover, it is projected that by 2028, 95% of total revenue in this market will be generated through online sales.
When compared globally, most revenue will be generated in China, with an estimated revenue of US$136bn in 2024.
Argentina's domestic flight market is dominated by Aerolíneas Argentinas, with limited competition from low-cost carriers.

Key regions: Germany, China, Saudi Arabia, Malaysia, Thailand

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Analyst Opinion

The Flights market in Argentina has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development. Customer preferences in the Flights market in Argentina have shifted towards more affordable and convenient options. Travelers are increasingly looking for budget-friendly flights and flexible booking options. This has led to the rise of low-cost carriers and online travel agencies, which offer competitive prices and easy booking processes. Additionally, customers are prioritizing direct flights and shorter travel times, as they seek to maximize their time at their destination. Trends in the market reflect these customer preferences. Low-cost carriers have gained a larger market share in Argentina, offering affordable flights to both domestic and international destinations. These airlines have been able to keep costs low by operating smaller aircraft and focusing on popular routes. Furthermore, online travel agencies have become increasingly popular, providing customers with a wide range of flight options and the ability to compare prices and book tickets conveniently. Local special circumstances have also played a role in the development of the Flights market in Argentina. The country's large size and diverse geography make air travel the most efficient and convenient mode of transportation for many travelers. Additionally, Argentina has experienced a significant increase in tourism in recent years, with visitors coming from both domestic and international markets. This has created a higher demand for flights and has led to the expansion of airline routes and the introduction of new destinations. Underlying macroeconomic factors have also contributed to the growth of the Flights market in Argentina. The country has seen improvements in its economy, with rising disposable incomes and a growing middle class. This has led to an increase in leisure and business travel, as more people are able to afford flights. Additionally, the depreciation of the Argentine peso has made international travel more affordable for foreigners, attracting more tourists to the country. In conclusion, the Flights market in Argentina has been developing rapidly due to customer preferences for affordable and convenient options, the rise of low-cost carriers and online travel agencies, the country's large size and increasing tourism, and the underlying macroeconomic factors of a growing economy and a depreciated currency. These factors have created a favorable environment for the growth of the Flights market in Argentina, and the market is expected to continue expanding in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of flights.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.