The information in this document would present an understanding of the consumers market in the UK to support a commercial airline company gain new customers and subsequently increase its revenue and profits for the year 2010.
The air travel market has grown resilient in spite of the ongoing recession. In 2007, the number of passengers at the UK air ports has reached more than 271 million. As more people seek commercial air travel, the low-cost, no frills airline model has proved to be efficient with 18% gain in market share between 2000 and 2004. Several factors affect the cost of air travel of which was the drop in fuel prices in 2009 and an increase in the retirement age, meaning that more people will have a higher pension income and would consider leisure travelling to holiday destinations. Furthermore, the market shows that 55% of people book their flights online making the Internet the most popular medium for advertisement within the travel industry, with more that 8.1% of the total Internet advertisement revenue coming from travel companies. These investments are justified by the fact that 80% of the homes in the UK have broadband Internet service translating to more than 20 million people.
The main players within budget air travel in Europe are: EasyJet, Ryanair, Flybe, Norwegian, Veuling, and bmibaby in addition to others. EasyJet and Ryanair own 19.1% and 18.77% respectively of the total market.