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Research Outline
Prepared for Rebeca N. | Delivered November 26, 2019
Airport Transfers Industry
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Goals
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
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Early Findings
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%.
The market for airport ground transportation tends to grow alongside
the increase of air travel,
but it’s noted that
intense competition
in the space may contribute to declines in revenue.
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 (
T
N
C
s
)
like
U
b
e
r
and
L
y
f
t
, 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
T
N
C
s
.
It's also noted that airports and airlines can benefit from
integrating airport transfer booking
with flight booking, and can avoid decreased revenues through convenience.
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