Amadeus-Oxford Economics report titled Shaping the Future of Travel was released on 2 April 2014. As per the report India, China and other emerging economies like Brazil and Russia will lead the growth in global aviation market over the next 10 years.
The driver of this growth in the aviation industry of these countries would be rising wealth and changing consumer habits.
Main highlights of the Report
- Global travel rebounded rapidly from the 2009 financial crisis and is expected to grow robustly over the next decade.
- Global overnight visitor flows will grow at 5.4% per annum over the next decade which is faster than the GDP growth of 3.4% and is more in line with the expected expansion in global trade flows of 5.8%.
- In terms of regional overnight visitor flows, Asia Pacific, the Middle East and Africa will be the fastest growing regions over the next decade.
- Over the next 10 years, Asia will grow at nearly double the rate it achieved in the period 2002-2012. Yet, the share of Europe in the visitor flows will remain dominant out to 2023.
- For outbound travel spend, the Asia Pacific region will be the growth leader over the next ten years, overtaking Europe to dominate global outbound travel spend by 2023.
- North East Asia alone will account for 42% of the growth in global outbound business travel expenditure over the next decade, with South East Asia accounting for a further 13%.
- Non-OECD countries accounted for 44% of global air traffic in 2013 and it is expected to rise to 51% in the next ten years, driven primarily by the expansion of large emerging markets, especially China.
- Non-OECD air traffic is increasingly independent of mature Western markets, with South-South journeys accounting for 40% of global air traffic in the past five years.
China may overtake the US as the largest source of outbound travel expenditure in the world in 2014, with China’s share of global outbound travel expenditure set to rise from 1% in 2005 to 20% in 2023.
- In fact, the potential market for outbound Chinese tourism could more than double to 220 million households in the next decade.
China may also surpass the US as the world’s largest domestic travel market by 2017.
- Growth would not be exclusive to China. It is forecast that other large emerging markets such as Russia, Brazil, India, Indonesia and Turkey will also average more than five per cent annual growth over the next 10 years
The Amadeus-Oxford Economic Report concludes that emerging market travel sectors are not only growing, but also innovating to meet the demands of rapidly expanding and maturing domestic markets, with lessons for Western providers. Technologically, emerging markets are often more open to change and local agents are more experimental than their advanced market counterparts.
About Amadeus IT Group
Amadeus IT Group was born on 21 October 1987 in accordance with an agreement between Air France, Iberia, Lufthansa and SAS to create a new global distribution system. It is headquartered in Madrid, Spain.
It is a technology provider for travelling sector across the world. It operates in 195 countries with a worldwide team of more than 11000 people.
Amadeus is listed on the Spanish Stock Exchange and forms part of the IBEX 35 Index.
Luis Maroto is the present President and CEO of Amadeus IT Group.