Delivered November 26, 2019. Contributor: Jennifer P.
Gain an understanding of the competitive landscape & regulations of the airport transfers industry in order to find pain points and needs, understand trends and risks, as associated with a potential new solution in the space
The total revenue for airport shuttles in 2019 is estimated to be $1 billion.
Market growth between 2014 and 2019 is estimated at approximately 1.5%.
It's also noted that the number of passengers flying for business and leisure grows alongside increases in per capita disposable income, which in effect increases demand for airport transfer services.
Risks in industry profit are most associated with crude oil prices, one of the major cost items for airport transportation providers. When gas prices increase, the profit margin of providing these services declines.
Another competitive threat in the airport transfer industry is the increase of Transportation Network Companies (TNCs) like Uber and Lyft, which can create revenue losses for other airport ground transportation operators.
However shared ride airport operators such as SuperShuttle have begun to step up their ability to offer mobile and app based ride ordering in order to stay competitive with TNCs.