Tier 2 and Tier 3 cities are massive markets for aviation industry: Here is why
Tier 2 and Tier 3 cities are no longer peripheral players in the aviation industry
Indian aviation industry is booming. PTI
In recent years, the aviation industry has witnessed significant growth, and this expansion is not limited to metropolitan areas alone. Tier 2 and Tier 3 cities are emerging as massive markets for the aviation industry, offering unique opportunities and challenges. This article explores the reasons behind the increasing significance of these cities in the aviation sector and sheds light on the potential they hold for the future of aviation.
The aviation industry in India has evolved into a significant contributor to the country’s economic growth. While metro cities have always been the primary focus, the past decade has seen a remarkable shift in the market dynamics. Tier 2 and Tier 3 cities, often overshadowed, are now capturing attention due to various factors that make them vital players in the aviation sector.
Understanding Tier 2 and Tier 3 cities
Tier 2 cities refer to the second level of urban areas in India, with populations ranging from 0.5 to 1 million, while Tier 3 cities consist of smaller urban areas with populations of 0.1 to 0.5 million. These cities are rapidly developing, offering immense potential for businesses, including the aviation industry.
Growing air travel demand
With the increase in disposable incomes and changing lifestyles, air travel has become more affordable and accessible to a broader segment of the population. This has resulted in a surge in demand for air travel services in Tier 2 and Tier 3 cities.
Economic growth and urbanisation
Tier 2 and Tier 3 cities have been witnessing steady economic growth and urbanization, leading to a rise in the number of middle-class families. The burgeoning middle class, coupled with improved connectivity, has fueled the demand for air travel.
Government initiatives and regional connectivity
The government’s focus on improving regional connectivity through initiatives like UDAN (Ude Desh ka Aam Nagrik) has facilitated the development of airports in Tier 2 and Tier 3 cities. This has significantly enhanced accessibility and boosted air travel in these regions.
Infrastructure development
The infrastructure development in Tier 2 and Tier 3 cities has improved significantly over the years. Modern airports, better road networks, and improved amenities have made these cities attractive destinations for airlines and travellers alike.
Rise of Low-Cost Carriers (LCCs)
The emergence of Low-Cost Carriers (LCCs) has revolutionized the aviation industry by making air travel more affordable for the masses. LCCs have recognized the potential of Tier 2 and Tier 3 cities and have expanded their operations to cater to the rising demand.
The Role of Technology
Technology has played a crucial role in transforming the aviation industry. Online booking platforms, mobile apps, and digital payment systems have made it easier for travelers from Tier 2 and Tier 3 cities to plan and book their flights conveniently.
Employment and Skill Development
The aviation industry’s growth in Tier 2 and Tier 3 cities has created new job opportunities and promoted skill development in the aviation sector. This has led to a positive impact on the local economies and livelihoods.
Challenges in Tier 2 and Tier 3 cities
Despite the opportunities, there are challenges that need to be addressed. Some of these challenges include the need for better infrastructure, skilled workforce availability, and ensuring consistent air traffic.
Conclusion
Tier 2 and Tier 3 cities are no longer peripheral players in the aviation industry; they have emerged as massive markets with immense potential. Factors such as growing air travel demand, economic growth, government initiatives, and technology adoption have contributed to this transformation. As the aviation sector continues to evolve, Tier 2 and Tier 3 cities are set to play a crucial role in shaping its future.
The author is Founder, Myfledge. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views.
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