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Flights - Sri Lanka

Sri Lanka

It is projected that the revenue in the Flights market in Sri Lanka will reach US$289.00m by 2024.
Moreover, it is expected that the revenue will grow annually at a rate of 3.53% between 2024 and 2028.
This growth rate will result in a projected market volume of US$332.00m by 2028.
Furthermore, it is estimated that the number of users in this market will reach 2.65m users by 2028.
The user penetration rate is also expected to increase from 10.9% in 2024 to 12.0% by 2028.
The average revenue per user (ARPU) is projected to be US$121.20.
Additionally, it is estimated that 74% of the total revenue in the Flights market will be generated through online sales by 2028.
Finally, when compared globally, the majority of revenue in this market will be generated in China, amounting to US$136bn in 2024.
Due to the increasing popularity of Sri Lanka as a tourist destination, the demand for domestic flights within the country is on the rise.

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

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Analyst Opinion

The Flights market in Sri Lanka has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Sri Lanka have shown a growing interest in air travel, both for domestic and international destinations. This can be attributed to several factors. Firstly, air travel offers convenience and time savings compared to other modes of transportation, especially for long-distance journeys. Secondly, the increasing affordability of flights has made air travel more accessible to a wider range of customers. Lastly, the desire for exploration and travel experiences has fueled the demand for flights, as people seek to discover new destinations and cultures.

Trends in the market: One of the key trends in the Flights market in Sri Lanka is the expansion of airline networks and routes. Airlines are continuously adding new destinations to their flight schedules, both within Sri Lanka and to international locations. This trend is driven by the increasing demand for travel and the desire to cater to a diverse range of customer preferences. Additionally, the introduction of low-cost carriers has further stimulated the market by offering affordable flight options to budget-conscious travelers. Another trend in the market is the adoption of technology and digital platforms. Sri Lanka has seen a rapid increase in internet penetration and smartphone usage, which has led to a shift in customer behavior. Travelers are now more likely to book flights online, compare prices, and seek out the best deals. This has created a more competitive market, with airlines and travel agencies offering attractive promotions and discounts to attract customers.

Local special circumstances: Sri Lanka's unique geographical location has also contributed to the development of the Flights market. As an island nation, air travel is often the most convenient and efficient mode of transportation for both domestic and international travel. This has created a strong demand for flights, particularly for routes connecting major cities and tourist destinations. Additionally, Sri Lanka's growing tourism industry has further fueled the demand for flights, as international visitors seek convenient and affordable travel options.

Underlying macroeconomic factors: The Flights market in Sri Lanka is also influenced by underlying macroeconomic factors. Economic growth, rising disposable incomes, and an expanding middle class have all contributed to increased travel and tourism activity. As people have more disposable income, they are able to allocate a larger portion of their budget to travel, including flights. Additionally, the government's focus on developing the tourism sector and improving infrastructure has created a favorable environment for the Flights market to thrive. In conclusion, the Flights market in Sri Lanka is experiencing significant growth due to customer preferences for convenience and travel experiences, market trends such as the expansion of airline networks and adoption of technology, local special circumstances including the island's geography and growing tourism industry, and underlying macroeconomic factors such as economic growth and government support for the tourism sector.

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.