The post The Inexorable Growth In Air Travel And It’s Implication appeared on BitcoinEthereumNews.com. PARIS, FRANCE – JUNE 27: A general view of the Eiffel Tower at dusk as the Olympic Rings are displayed during previews ahead of the Paris 2024 Olympic Games on June 27, 2024 in Paris, France. (Photo by Ryan Pierse/Getty Images) Getty Images One of the foundational facts of commercial air travel is that the number of people flying globally is closely linked to world Gross Domestic Product. That is as the economy continues to grow over time, so does the demand for air transportation and by extension, the need for new aircraft to fulfill that demand as well as to replace older aircraft that are economically obsolete. Dips in world GDP, occasioned by recessions (dot-com bubble, fiscal crisis), pandemics (SARS, COVID) or wars (Ukraine, 9/11) can disrupt the monotonic increase of air travel demand, but eventually the curve reverts to the mean. In this case, that mean is roughly 4 per cent year over year, and world Revenue Passenger Miles (RPM’s) – a paying passenger travelling a mile – have recently returned to pre-pandemic levels. Most of those RPM’s are utilized for leisure travel which is estimated to make up as much as 85% or more of miles flown. Business passengers are only around 12 to 15% of overall travel but they are vastly more profitable, making up as much as 75% of profits for a given flight. This is because business travelers tend to purchase premium seats, often make last minute changes which incur fees or higher prices and spend more on amenities. A more recent development has been the blending of business and leisure travel to create a category called “bleisure.” While adding a few days at a destination that was the focus of a business event for personal reasons has always existed, the category has expanded… The post The Inexorable Growth In Air Travel And It’s Implication appeared on BitcoinEthereumNews.com. PARIS, FRANCE – JUNE 27: A general view of the Eiffel Tower at dusk as the Olympic Rings are displayed during previews ahead of the Paris 2024 Olympic Games on June 27, 2024 in Paris, France. (Photo by Ryan Pierse/Getty Images) Getty Images One of the foundational facts of commercial air travel is that the number of people flying globally is closely linked to world Gross Domestic Product. That is as the economy continues to grow over time, so does the demand for air transportation and by extension, the need for new aircraft to fulfill that demand as well as to replace older aircraft that are economically obsolete. Dips in world GDP, occasioned by recessions (dot-com bubble, fiscal crisis), pandemics (SARS, COVID) or wars (Ukraine, 9/11) can disrupt the monotonic increase of air travel demand, but eventually the curve reverts to the mean. In this case, that mean is roughly 4 per cent year over year, and world Revenue Passenger Miles (RPM’s) – a paying passenger travelling a mile – have recently returned to pre-pandemic levels. Most of those RPM’s are utilized for leisure travel which is estimated to make up as much as 85% or more of miles flown. Business passengers are only around 12 to 15% of overall travel but they are vastly more profitable, making up as much as 75% of profits for a given flight. This is because business travelers tend to purchase premium seats, often make last minute changes which incur fees or higher prices and spend more on amenities. A more recent development has been the blending of business and leisure travel to create a category called “bleisure.” While adding a few days at a destination that was the focus of a business event for personal reasons has always existed, the category has expanded…

The Inexorable Growth In Air Travel And It’s Implication

PARIS, FRANCE – JUNE 27: A general view of the Eiffel Tower at dusk as the Olympic Rings are displayed during previews ahead of the Paris 2024 Olympic Games on June 27, 2024 in Paris, France. (Photo by Ryan Pierse/Getty Images)

Getty Images

One of the foundational facts of commercial air travel is that the number of people flying globally is closely linked to world Gross Domestic Product. That is as the economy continues to grow over time, so does the demand for air transportation and by extension, the need for new aircraft to fulfill that demand as well as to replace older aircraft that are economically obsolete.

Dips in world GDP, occasioned by recessions (dot-com bubble, fiscal crisis), pandemics (SARS, COVID) or wars (Ukraine, 9/11) can disrupt the monotonic increase of air travel demand, but eventually the curve reverts to the mean. In this case, that mean is roughly 4 per cent year over year, and world Revenue Passenger Miles (RPM’s) – a paying passenger travelling a mile – have recently returned to pre-pandemic levels.

Most of those RPM’s are utilized for leisure travel which is estimated to make up as much as 85% or more of miles flown. Business passengers are only around 12 to 15% of overall travel but they are vastly more profitable, making up as much as 75% of profits for a given flight. This is because business travelers tend to purchase premium seats, often make last minute changes which incur fees or higher prices and spend more on amenities.

A more recent development has been the blending of business and leisure travel to create a category called “bleisure.” While adding a few days at a destination that was the focus of a business event for personal reasons has always existed, the category has expanded as a result of the pandemic where remote work was normalized and schedules became more flexible.

The result has been for airlines to expand their offerings away from a three class system (First, Business, Economy) to more gradations such as First, Premium Economy, Economy Plus or Comfort Plus and Coach. This allowed airlines to match their service and price offerings to capture the willingness of the flying public to pay for something in between First Class and steerage.

People gathering at the Colosseum monument in Rome on April 7, 2023, prior to the Way of the Cross (Via Crucis) prayer service as part of celebrations of the Holy Week. (Photo by Andreas SOLARO / AFP) (Photo by ANDREAS SOLARO/AFP via Getty Images)

AFP via Getty Images

Another effect of the rebound in air travel has been the strain on popular destinations. Coming out of the pandemic, people pulled out their “bucket lists” and engaged in “revenge travel.” As a result iconic sites, such as the Coliseum, the Eiffel Tower or the Louvre drew record crowds to their host countries.

For the last 30 years, France has been the most popular tourist destination representing 8% of global tourism with over 100 million visitors. Spain, US, Italy and Turkey round out the top five destination countries. China which had been in the top five before the pandemic has dropped lower due to travel restrictions and reduced preference.

However, there are only so many “A list” sites to be visited, while the travel push continues to grow. A result of the ever increasing swell of tourists to a finite set of iconic destinations has been “overtourism.” To combat the crowding and destruction, many locations have instituted tourist caps, time entry reservations, fees, activity bans and restrictions on accommodations.

ATHENS, GREECE – JULY 20: Atop the Acropolis ancient hill with Parthenon temple during a heat wave on July 20, 2023 in Athens, Greece. The Acropolis of Athens and other archaeological sites in Greece announced reduced opening hours due to the heatwave conditions. (Photo by Milos Bicanski/Getty Images)

Getty Images

Mount Fuji has instituted a daily visitor cap as well as a hiking fee. Popular US National Parks such as Yosemite and Glacier use caps and reservation systems. The Acropolis uses timed entry permits as well as the restored Notre Dame in Paris. Florence has instituted a ban on short term rentals in its historic city center and Machu Pichu closed the site for a period due to concerns regarding deterioration from high foot traffic.

This problem is only going to become more severe as the 4% increase year over year funnels more visitors to the limited set of high profile locations. One reaction is to move to new sites (such as Croatia, Norway, India, Cambodia). Another is to shift away from the high summer season.

Traditional summer locations such as Cape Cod, the Hamptons or Jackson Hole have seen increases in visitors during shoulder seasons. The tremendous heat during the summer in Europe in 2025 has made visiting in fall much more attractive. Visitors are motivated by a less crowded, more authentic experience as well as concerns regarding the environment and sustainability.

Passion based travel – fueled by social media posts – has also prompted shifts away from the traditional sites and focused on more remote or less well known destinations and is often associated with special events or festivals.

Studies show that as income rises, a population begins to travel – for both business and leisure reasons. The good news is that commercial aircraft, which currently have a delivery backlog of seven years or more, will stay in high demand. The bad news is that the strain on passengers, airports and tourist destinations will not abate any time soon, if ever.

Source: https://www.forbes.com/sites/jerroldlundquist/2025/10/06/the-inexorable-growth-in-air-travel-and-its-implication/

Market Opportunity
null Logo
null Price(null)
--
----
USD
null (null) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Huang Licheng Holds Controversial 25x ETH Long Position

Huang Licheng Holds Controversial 25x ETH Long Position

The post Huang Licheng Holds Controversial 25x ETH Long Position appeared on BitcoinEthereumNews.com. Key Points: Huang Licheng, known as “Machi,” holds a 25x leveraged
Share
BitcoinEthereumNews2025/12/22 03:49
UK and US Seal $42 Billion Tech Pact Driving AI and Energy Future

UK and US Seal $42 Billion Tech Pact Driving AI and Energy Future

The post UK and US Seal $42 Billion Tech Pact Driving AI and Energy Future appeared on BitcoinEthereumNews.com. Key Highlights Microsoft and Google pledge billions as part of UK US tech partnership Nvidia to deploy 120,000 GPUs with British firm Nscale in Project Stargate Deal positions UK as an innovation hub rivaling global tech powers UK and US Seal $42 Billion Tech Pact Driving AI and Energy Future The UK and the US have signed a “Technological Prosperity Agreement” that paves the way for joint projects in artificial intelligence, quantum computing, and nuclear energy, according to Reuters. Donald Trump and King Charles review the guard of honour at Windsor Castle, 17 September 2025. Image: Kirsty Wigglesworth/Reuters The agreement was unveiled ahead of U.S. President Donald Trump’s second state visit to the UK, marking a historic moment in transatlantic technology cooperation. Billions Flow Into the UK Tech Sector As part of the deal, major American corporations pledged to invest $42 billion in the UK. Microsoft leads with a $30 billion investment to expand cloud and AI infrastructure, including the construction of a new supercomputer in Loughton. Nvidia will deploy 120,000 GPUs, including up to 60,000 Grace Blackwell Ultra chips—in partnership with the British company Nscale as part of Project Stargate. Google is contributing $6.8 billion to build a data center in Waltham Cross and expand DeepMind research. Other companies are joining as well. CoreWeave announced a $3.4 billion investment in data centers, while Salesforce, Scale AI, BlackRock, Oracle, and AWS confirmed additional investments ranging from hundreds of millions to several billion dollars. UK Positions Itself as a Global Innovation Hub British Prime Minister Keir Starmer said the deal could impact millions of lives across the Atlantic. He stressed that the UK aims to position itself as an investment hub with lighter regulations than the European Union. Nvidia spokesman David Hogan noted the significance of the agreement, saying it would…
Share
BitcoinEthereumNews2025/09/18 02:22
Aave DAO to Shut Down 50% of L2s While Doubling Down on GHO

Aave DAO to Shut Down 50% of L2s While Doubling Down on GHO

The post Aave DAO to Shut Down 50% of L2s While Doubling Down on GHO appeared on BitcoinEthereumNews.com. Aave DAO is gearing up for a significant overhaul by shutting down over 50% of underperforming L2 instances. It is also restructuring its governance framework and deploying over $100 million to boost GHO. This could be a pivotal moment that propels Aave back to the forefront of on-chain lending or sparks unprecedented controversy within the DeFi community. Sponsored Sponsored ACI Proposes Shutting Down 50% of L2s The “State of the Union” report by the Aave Chan Initiative (ACI) paints a candid picture. After a turbulent period in the DeFi market and internal challenges, Aave (AAVE) now leads in key metrics: TVL, revenue, market share, and borrowing volume. Aave’s annual revenue of $130 million surpasses the combined cash reserves of its competitors. Tokenomics improvements and the AAVE token buyback program have also contributed to the ecosystem’s growth. Aave global metrics. Source: Aave However, the ACI’s report also highlights several pain points. First, regarding the Layer-2 (L2) strategy. While Aave’s L2 strategy was once a key driver of success, it is no longer fit for purpose. Over half of Aave’s instances on L2s and alt-L1s are not economically viable. Based on year-to-date data, over 86.6% of Aave’s revenue comes from the mainnet, indicating that everything else is a side quest. On this basis, ACI proposes closing underperforming networks. The DAO should invest in key networks with significant differentiators. Second, ACI is pushing for a complete overhaul of the “friendly fork” framework, as most have been unimpressive regarding TVL and revenue. In some cases, attackers have exploited them to Aave’s detriment, as seen with Spark. Sponsored Sponsored “The friendly fork model had a good intention but bad execution where the DAO was too friendly towards these forks, allowing the DAO only little upside,” the report states. Third, the instance model, once a smart…
Share
BitcoinEthereumNews2025/09/18 02:28