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Flights - South Korea

South Korea

South Korea is expected to see a significant growth in the Flights market in the coming years.
It is projected that revenue in this market will reach US$12.41bn by 2024, with an expected annual growth rate of 0.93% until 2028.
This will result in a projected market volume of US$12.88bn by 2028.
The number of users in this market is also expected to rise, reaching 14.06m users by 2028.
Furthermore, it is projected that user penetration will increase from 26.4% in 2024 to 27.3% by 2028.
The average revenue per user (ARPU) is expected to reach US$0.91k.
It is worth noting that 88% of total revenue in this market is expected to come from online sales by 2028.
In terms of global comparison, China is expected to generate the most revenue in the Flights market with a projected revenue of US$136bn in 2024.
Nonetheless, in South Korea is still expected to see significant growth in this market.
South Korea's airlines are expanding their routes and offering more direct flights to international destinations, making travel more convenient for Korean passengers.

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

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Analyst Opinion

The Flights market in South Korea has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Flights market in South Korea have been shifting towards more convenient and efficient travel options. With the rise of low-cost carriers and online travel agencies, customers are increasingly looking for affordable fares and easy booking processes. Additionally, there has been a growing demand for direct flights to popular destinations, as South Koreans are increasingly traveling abroad for leisure and business purposes. In terms of market trends, the Flights market in South Korea has seen an increase in competition among airlines. This has led to lower fares and improved services, as airlines strive to attract and retain customers. Airlines have also been expanding their routes and frequencies to cater to the growing demand for international travel. Moreover, there has been a rise in the number of partnerships and alliances between airlines, allowing them to offer more seamless travel experiences and access to a wider network of destinations. Local special circumstances in South Korea have also contributed to the development of the Flights market. South Korea is a geographically small country with limited domestic travel options, which has led to a greater reliance on air travel for domestic journeys. Additionally, the country's strong economy and high disposable income levels have made air travel more affordable and accessible to a larger segment of the population. Underlying macroeconomic factors have played a significant role in the growth of the Flights market in South Korea. The country's strong economic growth has led to an increase in business and leisure travel, both domestically and internationally. Furthermore, the government has implemented policies to promote tourism and attract foreign visitors, which has further boosted the demand for flights. In conclusion, the Flights market in South Korea has been developing rapidly due to customer preferences for convenience and affordability, market trends such as increased competition and partnerships, local special circumstances like limited domestic travel options, and underlying macroeconomic factors including strong economic growth and government initiatives. As these factors continue to shape the market, the Flights industry in South Korea is expected to see further growth and evolution 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.