Market Context & Analysis Clause Samples

Market Context & Analysis. In order to redevelop the airport it is paramount to understand the projected number of passengers and aircraft that will use the airport in the future. This will ensure that all airport facilities are sized to cater for the future traffic and that the estimated revenue streams coming from the aviation industry are satisfactory enough to recoup the monetary investment being undertaken for the redevelopment of this key infrastructure for Bermuda. A total of 774,000 passengers travelled through Bermuda airport in 2013, representing a decrease of 25% compared to 1995 levels. This downward trend continued in 2014, dipping to 750,000 passengers, a further 3% decline. Passenger traffic at Bermuda can be differentiated into four main segments:  outbound Bermudans,  inbound vacationers,  inbound visiting friends and relatives, and  inbound business/conferences visitors. Each of these components has different drivers and motives to fly to Bermuda, which is considered as one of the world’s strongest country brands although it has lost some positions in the past few years. Of the four market segments, the loss is predominantly in the inbound vacationers segment which has fallen by 45% since 1998, compared to a background of world traffic growth. The main originating markets for passengers travelling by air are:  United States,  Canada, and  United Kingdom. The market that lost most of the passengers is the United States, with Canada and the United Kingdom traffic being fairly static in recent years. The Canadian market has been static in spite of intense competition between WestJet and Air Canada on the Toronto route, which should have resulted in a stimulation of traffic. The UK market is limited to a single route operated by British Airways to London Gatwick and is not subject to a significant increase in operations. Bermuda US connections have air links only to the main US East Coast airport hubs, which provide access to the main gateways and onward connectivity to passengers. The numbers of flights and seats available to these hubs have decreased over time, thus decreasing the overall connectivity for passengers. In particular the New York JFK route has significantly decreased (through reduction of frequencies and aircraft size) a sign of how Bermuda has lost its appeal among its single largest originating market, the New York metropolitan area. Traffic figures indicate that Bermuda has lost its appeal amongst tourists arriving by air, becoming an “out of ...