Domestic Airlines Reap N 67 Billion from Online Ticket Sales
Management consulting firm, Ciuci Consulting has authored a report which claims Nigerians spend N 67 billion annually on online ticket sales.
The report states that the development is due to the proliferation of internet and internet based devices such as smartphones and tablet computers, paired with the advent of social media channels.
The report says there are 43 million internet users in the country comprising of students, entry-level employees, experienced and non-experienced managers, executives and non-executives.
The report goes on to estimate the air passengers amongst that population. It states, “If 50 per cent of the population of the country falls between the ages of 18 and 45 years, we could apply that ration on the number of Internet users. Therefore, it is estimated that at least 50 per cent of Internet users—21 million people fall between the ages of 18 and 45 years.”
The report further estimates that 20% of the 21 million Nigerians earn more than N800,000 per year, or 4.2 million people.
It concludes that those 4.2 million people spend N 67 .2 billion on travel, after estimating the average ticket to be N 16,000.
“Therefore, the total annual market size for online air passengers is estimated at 4.2 million people multiplied by N16, 000, which equals N67.2bn,”the report said.
The report states 81 per cent of domestic online purchases are done online, nine per cent through travel agency, while airline desk and mobile phone account for five per cent each.
He said, “From the results, the most preferred booking channel as reflected by 81 per cent of the respondents is the Internet. This is obvious because it is the most convenient option available to passengers, as all they require is a computer and Internet access to make the booking.”