Pre-Book Airport Transfer Market Snapshot
As per the latest study by Future Market Insights (FMI), the pre-book airport transfer market size is expected to surpass US$ 6.3 Bn in 2021. Between 2021 and 2031, the market is expected to exhibit compound annual growth rate (CAGR) of 23.6%.
Increasing demand for travel and tourism along with ease of travel and availability of low cost airlines are contributing towards the growth of the global pre-book airport transfer market. The market also will gain from the increasing penetration of smart phones and improving connectivity, especially in emerging economies. Spurred by this, the global market valuation is expected to total US$ 52.42 Bn by 2031.
Key Points Covered in Pre-Book Airport Transfer Market Survey
- Market estimates and forecast 2015-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Pre-Book Airport Transfer and How to Navigate
- Recommendation on Key Winning Strategies
2016-2020 Pre-book Airport Transfer Market Outlook Compared to 2021-2031 Forecast
The global pre-book airport transfer market has witnessed a significant transformation in recent years owing to the expansion of aviation industry, technological progression, advancement of airports and increase in tourism and frequency of foreign tourists.
Shift in consumer preferences towards traveling economically in private cars and shuttles rather than investing in traditional modes of transportation is expected to be a key growth driver of pre-book airport transfer market. Rising vehicles and fuel prices, high traffic conditions, low cost of shuttle/car ridership and limited parking space are the factors compelling people, especially millennials, to opt for airport transfer services.
Lack of proper conveyance is one of the many factors which results in unpleasant traveling encounters. However, with the introduction of airport transfer services, availing proper conveyance has become simpler.
Difficulty in pre-booking cars and unprofessional behavior of cab-drivers are fuelling the demand for pre-book airport transfer services. Additionally, errors due to poor network connection, lack of transparency & reliability and security are encouraging travelers to opt for airport transfer services.
Moreover, integration of advanced technologies such as artificial intelligence (AI), chat box, and digital payment has simplified the booking process for airport transfers, thereby, shaping the overall travel experience.
Also, most companies provide such services at lower rates than common taxis and offer attractive discounts. Alongside this, simple booking process, professional customer support services, drivers from top taxi company, zero cancellation fees, flexible payment mode guaranteed service and hassle free transfer are some of the factors projected to augment the pre-book airport transfer services growth.
For instance, in July 2021, Hertz introduced two exclusive offers for U.S. customers to make their travel more memorable and rewarding. Customers who join the Hertz Gold Plus Rewards will automatically upgrade to Five Star Elite status by 2021 and existing members can earn double points on rentals through September 30.
Other aspects such as increasing standard of living, growing influence of travel blogger experts, promotional strategies undertaken on the part of players are driving the demand for airport transfer services.
On the back of these factors FMI predicts the global pre-book airport transfer market is poised to expand at a stellar rate of 23.6% CAGR, totaling US$ 52.4 Bn through 2031.
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How will Rising Air Travel Affordability Stimulate the Adoption of Pre-Book Airport Transfer Services?
There has been tremendous growth in passenger traffic with the steady decline in the cost of air travel, a reduction of over 70% since 1970. The decrease in the cost has led to an increase in accessibility of air travel democratization. Further, air travel is becoming increasingly accessible in the developing countries, with various low-cost travel options, it is no longer a privilege and luxury commodity.
Further, the aviation industry has undergone a structural transformation and adjusted to a dynamic marketplace by consolidating and expanding into new markets. Development of low-cost carriers (LCCs), especially since the early 21st century, has been notable in emerging economies, making air travel more affordable.
For instance, in 2018, LCCs carried an estimated 1.3 billion passengers, which was about 31% of the world's total scheduled passengers. This indicated an increase of 8.7% compared to the number of passengers carried by LCC in 2017, which is about 1.4x the rate of the world total average passenger growth.
Hence, exponential growth of air traffic and rapid growth of air passengers is expected to push the adoption of pre-book airport transfer services in the market.
What Is the Impact Of COVID-19 On Pre-Book Airport Transfer Market?
The pre-booked airport transfer industry was one of the worst hit by the COVID-19, as the government imposed global shutdown, restricting international and domestic air travel. The cancellation of flights wielded an adverse impact on the airport transfer industry.
With the spread of COVID-19 and subsequent lockdowns, travel restrictions and other restrictions significantly affected the business travel industry.
Further, airline industry touched the pre-crisis level in terms of overall revenue and passenger traffic. Due to imposition of restriction of air travel, many airlines limited their flight schedules, which has adversely affected the revenue of airline companies and airports.
To curb the losses, airlines have resorted to cost-cutting measures such as canceling flights and relocating aircraft to places with lower parking fees, which has negatively impacted the pre-book airport transfer market.
Why is Demand for Pre-book Airport Transfer Service Increasing in Germany?
FMI has projected Europe to remain one of the most lucrative markets throughout the course of the forecast period. Rising number of business and leisure trips across the region, both internationally and locally, is among the prominent factors influencing the market growth.
Additionally, continuous shift in consumer preference toward airport transfer services, as well as the presence of major service providers in the region, such as Enterprise Rent-a-Car and Avis Budget Group, is expected to accelerate revenue generation prospects.
Recently, increasing adoption of these services across the region, driven by increased initiative by service operators is propelling the demand. For example, Uber Technologies Inc. adopted mobile technologies and other devices to meet the personal transportation needs of consumers efficiently.
How is the Pre-book Airport Transfer Market Faring in the U.S.?
The U.S. is predicted to be one of the most attractive markets during the forecast period, opines Future Market Insights. Growth is primarily driven by increasing travel and tourism activities and increasing availability of high-end luxury as well as economy vehicles, in the region.
Moreover, growing aging population in the region contributes as potential clients in the airport transfer services, expected to generate lucrative revenue during the forecast period.
Further, pre-book airport transfer service providers and operators are focusing on technological innovations to upgrade their distribution channels, enhance customer experience, and reduce in-person contact by including online digital payment, and providing loyalty programs with incentives.
How big is the Opportunity for Pre-book Airport Transfer Services in India?
India’s pre-book airport transfer market is expected to grow at the fastest pace owing to the rapidly increasing population in cities like Delhi, Mumbai, Pune, estimates Future Market Insights.
Additionally, the state of public transportation in India has remained in a dilapidated state over the years with low connectivity. The launch of airport transfer services in the market has transformed with ever-changing need of consumers.
Increasing usage of smartphones, growing popularity regarding safe and comfortable travel and cheap internet services has aided the growth of the market.
Will South Korea Emerge as a Lucrative Market in East Asia?
Expansion of existing airports and heavy investments in airport infrastructure across East Asia will stimulate the market demand. In the past few years, there has been a rapid increase in passenger traffic handled by airports in countries such as China, Japan and South Korea.
Due to this, the government and airport authorities have announced significant investments in the construction and expansion of airports. Thereby, accelerating the growth of airport transfer services in the market.
For instance, in 2019, South Korea’s Ministry of Land, Infrastructure and Transport announced its plans to invest approximately US$ 4.2 billion over a five-year period to expand the airport’s passenger handling capacity to 106 million passengers by 2024.
How will Rising Number of International Travelers Affect the Market Growth?
Based on traveler type, international traveler segment account for a significant share in the market. The growth of the international traveler is driven by the expansion of the travel & tourism industry, surge in government initiatives for the development of meetings, incentives, conferences, and increasing globalization.
On the other hand, the domestic traveler segment is likely to witness the fastest growth over the forecast period due to the growing trend of ‘staycation’. An internal holiday can be a cost-effective option for individuals and also has other benefits, such as making residents aware of the history and culture of their country.
Which Transportation Type is Mostly Preferred?
In terms of transportation, public transport account for a notable share as compared to private transportation. Rapidly changing economic reforms and increasing urbanization across the globe is fueling the global public transportation.
Moreover, public transportation is cost-effective, affordable, and provides safe transportation which is accessible in rural and urban areas. Therefore, consumers are opting for public transportation services, widening future growth prospects.
Which Age Group Drives the Demand for Pre-book Airport Transfer Services?
In terms of age group, the 26-45 years’ segment dominated the global market and is expected to retain its dominance during the forecast period. However, 45-60 years’ segment is anticipated to garner significant market growth during the upcoming years.
As millennials are constantly in search for uncommon destinations to gather unique experience, travel activities from this age group is expected to improve the sales. Further, rising trend of leisure travel, for business or personal purpose, for recreational activities and improve work efficiency will boost the market demand.
Which Tourist Type Holds Major Revenue Share?
Leisure travel accounted for around 3/4th in global pre-book airport transfer market value by end of 2021. The segment is expected to exhibit fastest growth over the forecast period as a result of expansion of logistics and infrastructure. Rising consumer’s income and favorable government policies and promotion of tourism will augment growth.
Moreover, people often opt for leisure travel to unwind new cultures, and meet new people along with the pursuit of new experience. Emergence of mobile application, artificial intelligence and big data analytics in the tourism industry, as well as the rise in the social media influence will further drive the growth of leisure travel.
Why are Online Booking Channel Preferred by Users?
With rising penetration of internet, booking through online channels are expected to register significant growth. With advent of online platforms and growing knowledge of internet, airport transfer agencies are relying on digital media and websites to diversify their travel packages and offer attractive packages, generating revenues.
In addition, companies are now attracting a larger audience for airport transfer bookings through their innovative mobile travel apps. Various features powered by artificial intelligence are being developed to stay connected with passengers on the go and provide assistance throughout their journey.
These are some of the factors facilitating the growth of online booking in the pre-book airport transfer market.
How are Group Travelers Aiding Demand?
Based on traveler, the group traveler are expected to register a significant growth during the forecast period. The group segment is prospering as the cost involved in group travel is lower. Further, the service providers offers discounted rates on accommodation and transportation for group travel.
However, consumer trend of solo travel is becoming increasingly popular. Social media is motivating people to undertake solo international and domestic travel. Increasing number of travel enthusiasts at the global level is creating new opportunity for the pre-book airport transfer market.
Companies operating in pre-book airport transfer services are aiming at strategic collaborations and strategic partnerships with other companies to expand their services and address the demand of an expanding patient pool. Moreover, major player in the industry are focusing on introducing various packages in the airport transfer services.
- In August 2020, Lyft announced its partnership with rental car company Sixt in order to let user’s access rental cars through the "Rentals" tab in their app.
- In November 2020, SuperShuttle Express and ExecuCar, leaders in airport ground transportation, announce market expansion with the addition of several new locations and a new and improved Express model.
- In June 2020, Uber announced that it would manage the on-demand high-occupancy vehicle fleet for Marin Transit, a public bus agency in Marin County, California. This partnership is Uber's first SaaS partnership.
Scope of Report
Historical Data Available for
USD Million for Value
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa
Key Segments Covered
Traveler Type, Transportation Type, Age Group, Tourist Type, Booking Channel, Traveler Type, Region
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Key Questions Answered in the Report
How much is the pre-book airport transfer market worth?
The global pre-book airport transfer market is worth US$ 6.29 Bn in 2021 and is expected to reach US$ 52.4 Bn by 2031.
What was the pre-book airport transfer market growth for the last 5 years?
Historically, the market has grown at a 12% CAGR from 2016 to 2020.
What are the key trends shaping the pre-book airport transfer market?
Increasing adoption of artificial intelligence and growing investment towards promotion of tourism and travel will create key opportunities for market players in the coming decade.
What is driving the demand of the pre-book airport transfer market?
Affordable international travel has increased sales opportunities in the pre-book airport transfer market. Rapid development of airport infrastructure, especially in developing economies, will propel the market growth.
Who are top 5 players in the pre-book airport transfers market?
The top 5 players include Super Shuttle International Company (6.8%), A&M Rentals (0.1%), Charter Vans. Inc. (0.1%), Dayton Express Cab Co. (0.04%), and Avis Budget Group (14.6%).
What are the top countries driving demand for pre-book airport transfer?
The U.S., Germany, Singapore, Finland, Japan, and Switzerland are the top 5 countries that are driving the demand for the pre-book airport transfer market.
What is the U.K. pre-book airport transfer market outlook?
The U.K. is expected to be a key market for Europe’s pre-book airport transfers, exhibiting a CAGR of 4.6% over the forecast period.
At what rate is the pre-book airport transfer market going to register growth in Russia?
Russia is set to exhibit a CAGR of 6.8% during the forecast period.
Market by Category
By Traveler Type:
By Transportation Type:
- Private Transportation
- Taxes & Shuttles
- Car Rentals
- Ride Shares
- Public Transportation
- Inter-City Shuttles
- Inter-Terminal Shuttles
By Age Group:
- 23-25 Years
- 26-45 Years
- 45-60 Years
- More Than 60 Years
By Purpose/Tourist Type:
- Visit Friends/Relatives
- Health Treatment
By Booking Channel:
- Phone Booking
- Online Booking
- In Person Booking
By Traveler Type:
- Independent Traveler
- Group Traveler
- North America
- Latin America
- Asia Pacific
- Middle East and Africa (MEA)