Last Wednesday we hosted our Future of Air Travel in Europe webinar with Michael Cawley: Non-Executive Director Ryanair and Hans Heerkens: Founder and former Chairman at Platform Unmanned Cargo Aircraft.
It was full of interesting insights, facts and views about where growth in airline travel will come from in the future for example:
- Did you know that only 5% of the world population has so far travelled by air?
- Price is the key driver of long term growth
- Unbundled products will be the way forward: buy your seat and add extras as required.
- The demand elasticity multiple of air travel is estimated to be 4-5 times of other industries which means a 20% reduction in price will deliver 80% increase in sales.
- Last 20 years have seen phenomenal short haul growth in Europe and all with low cost carriers.
- Business is concentrated on developed markets such as Spain, Italy, UK and Ireland however declining prices will open up low cost air travel to countries such as Poland where average income is increasing, the appetite for travel is growing and the air travel is so far relatively under developed.
- A more united Europe could lead to even easier travel (like the airpass model within the States).
- The market is set to explode!
A key takeaway was that air travel will resume it’s pre-corona growth pace. Prices may increase short term but ultimately for more people to travel you have to lower the price. And the winners? The market leaders who master the art of staying hungry in paradise - for being able to retain competitive advantage is key to success.
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View a video of the full talk click here.
View the slides here.