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The Global Helicopter Tourism Market size is estimated to grow by USD 282.41 million, accelerating at a CAGR of 4.5% between 2023 and 2027.
Additionally, Technavio provides valuable insights through value chain analysis, parent market analysis, Porter’s Five analysis, and vendor analysis. The report also includes a thorough analysis of historical market data from 2017 to 2022.
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Key Driver
The expansion of the commercial helicopter industry significantly propels the market. As traditional transportation struggles with population growth, there's a rising demand for alternative options. Increased prosperity and ongoing business development, particularly in emerging markets, drive the need for inner-city air travel. Urban heliports are on the rise, supported by low fuel prices and substantial investments, making travel more viable.
Despite the high fuel costs (constituting about one-third of total operating costs), the rotorcraft industry thrives, especially with the drop in crude oil prices. The demand for commercial medium and heavy products surpasses supply, indicating a promising outlook for these services in the forecast period. Consequently, manufacturers of civil or business anticipate growing demand during and beyond the forecast period.
Major Trend
The market's growth is primarily fueled by collaborations between helicopter operators and resorts. In the forecast period, joint business operations and partnerships are anticipated as key trends in the commercial industry. Similar to airlines, these operators form strategic alliances with hospitality providers like resorts and tourism companies to offer incentives to customers. This approach effectively raises awareness of their offerings, maximizing annual revenue for their partners.
For instance, Dezaiko Lodge has partnered with Canadian company Aberdeen Helicopters, and Alpine Helicopters has maintained a strategic partnership with Canadian Mountain Holidays for over 35 years. These partnerships not only benefit tourists but also boost the revenue of companies. The increasing prevalence of such collaborations is expected to enhance the revenue of resorts, hotels, or tourism firms, thereby expanding the scale and reach of the market.
Significant Challenge
A significant challenge for the market in the forecast period is the rising number of accidents. These, with numerous movable parts and components such as rotors, driveshaft, and gearbox, face a higher risk of malfunction, leading to potential loss of control. The constant motion of these parts increases the likelihood of rapid wear. This, being more challenging to handle than airplanes, poses additional complexities.
Research indicates a considerably higher accident rate for these (7.5) compared to airplanes (0.175) per 100,000 flying hours. This elevated accident rate, combined with the complexity of handling, discourages tourists from choosing to travel with this. Despite pilot training, technical malfunctions can incapacitate pilots, leading to accidents causing casualties and property damage.
The market share growth by the general segment will be significant during the forecast period. As per The World Bank Group, middle-income countries are home to nearly 75% of the global population. One of the major factors that determine tourist preference for these rides is the price of the services and commodities. Only a small percentage of tourists opt for these tours because of the restrictive costs. Of this, most people opt for the optimum deals that the companies offer them. However, these services are offered at fixed fares per seat and for a specified duration. Consequently, these companies generate their revenue based on the number of passengers carried to a particular destination. Such factors will increase segment growth during the forecast period.
Helicopter Tourism Market
By Type
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The general was valued at USD 555.60 million in 2017 and continue to grow by 2021. According to the International Air Transport Association (IATA), the number of air travelers is expected to double to 8.2 billion by 2037, with a significant increase in the Asia-Pacific (APAC) region, accounting for more than half of the new passengers. Additionally, these tours, including adventure tours, are not limited to a specific age group, and many tourists prefer them due to their affordability. However, such tours are typically predetermined in terms of location and duration, limiting the traveler's flexibility to choose their itinerary and travel companions. These factors have contributed to the popularity in emerging economies like India, China, Indonesia, and Brazil, which is expected to continue to grow during the forecast period.
North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Helicopter Tourism Market
By North America
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North America dominates the global demand, with the US and Canada being the region's major markets. These countries have advanced infrastructures, attractive tourist destinations, and several natural and architectural tourist attractions. In addition, the region is known for the hospitality of its people and the varied cultures, which signify its potential in tourism.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is characterized by a high level of market fragmentation and intense competition among travel firms offering sightseeing tours to various scenic attractions. Key market participants such as Heli Chicago and Lisbon Helicopters play a significant role in shaping industry trends.
These companies often differentiate themselves through unique company overviews, strong global presence, and innovative product launches. They also focus on research and development to enhance the aesthetic value of their offerings and provide memorable experiences for customers.
Despite the competitive market environment, companies in this sector continue to invest in expanding their production sites and improving their company financials. Market share data indicates the diverse range of services offered by these firms and highlights the industry's dynamic nature, driven by consumer demand for unique and exciting travel experiences.
Helicopter Tourism Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
Market growth 2023-2027 |
USD 282.41 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.5 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 41% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accretion Aviation, Airbus Group SE, Cape Town Helicopters, GCH Aviation Group, Grupo Sodarca, Heliair.it Srl, Helicopter Flight Services Inc., HELI-JET AVIATION, HeliXperiences, Liberty Helicopters, Mid West Helicopters, Niagara Helicopters Ltd., Northern Vietnam Helicopter Co., Papillon Grand Canyon Helicopters, Zip Aviation, Alamo Helicopter Tours, Birds Eye View Helicopters Inc., Maverick Aviation Group, and Sydney Helicopters |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Ownership
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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