Airport Shuttle Operators

Business for Sale Industry Economics




Projected CAGR

2002 - 2020


2020 - 2026






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Operators that offer passenger transportation between urban areas and airports, often by bus or vehicle, make up the Airport Shuttle Operators business. Because the sector depends on air activity for demand, revenue has generally tracked aviation activity in the United States. Over the five years to 2020, industry revenue is predicted to increase by 1.8 percent annually to $1.1 billion.

The sector has profited from improving economic circumstances. As consumer spending has grown, the number of people flying has grown, resulting in greater demand for airport shuttle services. External competition, on the other hand, has stifled revenue and profit growth, allowing the sector to take a larger share of the downstream market. The expansion of private automobile services enabled by smartphone applications such as Uber and Lyft, in particular, has resulted in income unpredictability for operators.

While many airport shuttle services follow a set route with many stops, ride-share and private vehicle services are often thought to provide more flexibility and convenience. As a consequence of the increased competition brought on by door-to-door services and mobile applications, industry operators have had to adjust their offerings.

Industry revenue is predicted to climb 1.2 percent in 2020 alone, owing to growing competition from ride-sharing businesses and health concerns emerging from the current COVID-19 (coronavirus) epidemic, which may dampen travel demand during the first quarter of 2020. Over the five years leading up to 2020, industry profit has grown as a consequence of these variables.

Over the next five years, external competition will most certainly continue to constrain industry demand. The two main ride-sharing businesses, Lyft Inc. and Uber Technologies Inc. are anticipated to continue to market their software services, putting downward pressure on the pricing of airport shuttle services. These services allow customers to share a trip with other passengers in the same vehicle and on a comparable route in order to save money on their overall ticket.

Despite the increased foreign competition, consumer demand is predicted to rise, owing to growing disposable income and corporate profit levels, as well as an increase in the number of passengers flying. In addition, industry players will most likely adjust to shifting levels of competition by offering their own private automobile and mobile application services. As a result, industry revenue is predicted to grow at a 1.0 percent yearly pace to $1.2 billion in the five years leading up to 2025.


The Airport Shuttle Operators industry is made up of companies that offer passenger transportation to, from, and between airports in the United States. Fixed-route, shared bus or van services, private automobile services, and as-needed non-fixed routes are among the options available. Operators in this industry compete with others in similar businesses that also offer airport transportation.

The Scheduled and Charter Bus Services business, for example, offers an airport shuttle service but picks up passengers from pre-arranged sites along the way to the airport. Although the public transportation business has cheaper pricing, it also has longer wait periods and less convenience.

While all alternative modes of transportation offer a danger to the sector, the Taxi and Limousine Services business has exploded in popularity over the last five years, posing a danger to the business and forcing operators to adapt.

Industry revenue growth has been slowed by rising per capita disposable income and the increasing popularity of ride-share services such as Uber and Lyft, which allow for on-demand vehicle service scheduling. The price, time, and convenience of different means of transportation are often used to assess consumer demand.

The sector has grown, with total revenue predicted to increase by 1.8 percent annually to $1.1 billion in the five years leading up to 2020. Passengers looking for transportation to and from airports drive the need for shuttle services. Over the last five years, as economic circumstances in the United States and elsewhere have improved, the sector has seen increased demand.

Increased discretionary income and corporate travel demand have led to a rise in the number of domestic trips taken by US citizens, with more passengers traveling for both business and pleasure. Over the last five years, both the number of overseas trips taken by US citizens and the number of inbound trips taken by non-US citizens have increased. As a consequence, the demand for transportation to and from airports has increased dramatically.

Air passengers looking for low-cost alternatives to public transportation or cabs to and from airports can find a solution in the sector. By using ride-sharing systems and targeted fixed routes that simplify and disperse expenses, airport shuttles are able to retain cost competitiveness.

Unlike public transportation, their pre-determined itineraries and relative privacy provide for significant time savings and convenience. However, as smartphone apps and GPS technology make transportation scheduling easier, fixed-route operators have struggled to keep up with demand as external competition and customer tastes have developed.

Despite increased air activity, the business has encountered turbulence as a result of increased competition from other transportation companies. The Taxi and Limousine Services business, which includes ride-sharing services like Uber and Lyft, is one of the sector’s main rivals and has taken a significant proportion of the market. Passengers may now arrange on-demand transportation services right from the airport to their desired location via ride-share applications.

Furthermore, services like Uber Inc.’s Uber Pool have increased pricing competition and put downward pressure on industry profit by restricting operators’ flexibility to modify their pricing. Furthermore, consumer-scheduled shuttles that operate as part of the Scheduled and Charter Bus Services market are using enhanced GPS coordination systems to plot out routes strategically and cut wait times.

In addition to facing external competition, the number of domestic and international trips taken by US citizens, as well as inbound trips taken by non-US citizens, has been hampered this year by continued health concerns that have hampered travel demand.

The current COVID-19 (coronavirus) epidemic has raised worries of a worldwide travel emergency, especially in the United States, which has lowered demand for travel and, as a result, has the potential to significantly impact this business. In 2020, industry revenue is expected to climb by 1.2 percent on an annual basis.

Over the last five years, the volatility in the global price of crude oil has impacted industrial earnings. Following a period of reduced pricing, which allowed operators to gain profit, recovering gasoline costs have put a cap on profits. Furthermore, increased price competition from better public transit and ride-sharing options has limited operators’ capacity to boost pricing.

Profit, defined as profits before interest and taxes, is predicted to account for 7.8% of total industry sales in 2020, up from 7.7% in 2015. Because fuel is such a large part of the sector’s running costs, industry operators are very sensitive to variations in oil prices. Despite falling dramatically earlier in the time, the global price of crude oil climbed by 2.5 percent on an annualized basis during the five years to 2020.

Internal rivalry is fierce, and external rivalry is a big factor in determining demand and income for the industry’s services. Other companies that provide similar or equivalent services compete with airport shuttle companies. Industry operators compete with airport or hotel shuttles, taxis and limos, public transportation, and self-transport choices such as driving and car-hire services, to name a few.

The price, dependability, comfort, and convenience of transportation are all factors that consumers consider when choosing a mode of transportation. Consumers who are short on time, for example, are more inclined to choose taxis or private automobiles that pick them up immediately from their house to save time.

Consumers, on the other hand, are more inclined to use public transportation or shuttles in times of economic hardship as a method to save money. While certain new competing modes of transportation, like ride-sharing services, are prohibited from operating at many airports, these firms have started to secure the particular license and clearance required to offer pickup airport transportation services, presenting a challenge to industry participants.

While the sector has seen increased demand in recent years, the need for more passenger transportation capacity has become obvious. As a consequence, the number of industry operators is predicted to grow at a 2.5 percent yearly pace to 679 firms in the five years leading up to 2020. Similarly, employment in the sector is expected to grow at a 2.7 percent yearly pace to 18,717 jobs during the same time period.


Competitive trends that arose in the five years leading up to 2020 are expected to continue to dominate the Airport Shuttle Operators sector in the five years leading up to 2025. Nonetheless, growth is predicted to continue, owing to a predicted rise in air travel and favorable economic circumstances. The number of people passing through airports in the United States is expected to increase significantly during the next five years.

In the five years leading up to 2025, for example, the number of overseas visits taken by US citizens is expected to rise at an annualized pace of 3.1 percent. During the same time period, the number of domestic trips taken by US citizens is predicted to increase by 2.1 percent on an annual basis. As a consequence, the demand for airport transportation services in the United States is expected to rise.

External rivals, on the other hand, are predicted to continue to take a larger proportion of the airport transportation market, which would likely limit sector expansion. Over the five years to 2025, industry revenue is predicted to expand at an annualized rate of 1.0 percent to $1.2 billion.

The number of airline passengers in a specific time period represents the potential downstream market size of the sector. Changes in per capita disposable income, business profits, consumer mood, and relative currency swings all have an impact on this metric. Positive economic circumstances are predicted to improve consumers’ willingness to travel and firms’ spending on business-related travel during the next five years.

Furthermore, as the cost of air travel decreases, demand for air travel will certainly increase among lower-income customers who may have previously postponed trip plans. Increased commercial activity is projected to stimulate demand for business trips as the economy expands over the next five years. Consumers, on the other hand, are projected to devote more of their growing discretionary money to travel.

However, there are fears that industry demand would be dampened, resulting in lower industry income over the following five years. For example, the current COVID-19 (coronavirus) epidemic has sparked travel concerns for 2020, which will most certainly harm the sector as fewer people fly.

Industry demand is likely to be lowered in the next years as long as health worries exist, and though the epidemic is not projected to last for the next five years, the impact on consumer confidence and future travel plans is yet uncertain.

Ride-sharing apps’ price-based competition will almost certainly continue to erode industry income. Lyft Inc. (Lyft) and Uber Technologies Inc. (Uber) introduced their respective automobile ride-sharing services, Lyft Line and Uber Pool, in certain locations in 2014, and have aggressively expanded the service throughout the US market since then. These ride-sharing capabilities allow users to dramatically cut their transport expenditures by splitting ticket charges with others along the way.

Because the business’s key competitive advantage is its cheap cost, the development of such applications would almost certainly drive industry operators to decrease their pricing, limiting profitability. However, in order to maintain demand, industry operators will almost certainly continue to adapt to the shifting competitive environment.

Industry operators will most likely strive to retain demand by selling memberships and subscription services, as well as cooperating with tour and sightseeing firms and supplying smartphone apps.

Over the five years to 2025, the value of industry salaries is expected to rise at an annualized rate of 1.3 percent to $512.8 million. As demand for private and on-demand shuttle services grows and industry operators want to expand their capacity, more drivers will likely be needed to operate routes from each airport.

In turn, employment is predicted to grow at a 1.4 percent yearly pace to 20,086 jobs in the five years leading up to 2025. The number of industry operators is predicted to rise at an annualized pace of 1.6 percent to 736 enterprises during the five years to 2025, largely following sector revenue, despite somewhat uncertain profitability.

Major cities around the country have also boosted their investments in public transportation, with a focus on connectivity to transit hubs like airports. The Metropolitan Washington Airports Authority, for example, is presently building a 23-mile expansion of the existing Metrorail system in Washington, DC. From Dulles International Airport to downtown Washington, this development is anticipated to give a one-seat journey.

Similarly, Los Angeles is planning on expanding its present rail system to include the Los Angeles International Airport (LAX), which is one of the busiest in the country. The expansion will allow passengers to use the city’s public transportation system to go to LAX and other sections of the city, giving greater access and convenience at a considerably cheaper cost than industry shuttle services, perhaps lowering industry demand.

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This sector is made up of businesses that specialize in providing fixed-route passenger transportation by car or bus to, from, and between airports. The industry of Airport Shuttle Operators has reached the end of its life cycle. While an increasing number of clients demand transportation to and from airports, private shuttle providers compete with a variety of external transportation choices for these clients.

Industry value added (IVA), which assesses a sector’s contribution to the entire economy, is predicted to grow at an annualized pace of 2.0 percent during the next ten years to 2025, owing to increased competitive pressures outside the industry. During the same time period, the US economy is predicted to grow at a pace of 2.1 percent on an annualized basis. As a result, the industry’s economic contribution is comparable to that of the whole economy.

Airline passengers and, despite expanding flight activity, private automobile businesses such as Uber Technologies Inc. and Lyft Inc. have taken a greater proportion of the industry’s downstream market. Consumers generally accept industry services completely, and the number of industry operators and personnel continues to increase at a modest rate. These patterns all point to an industry that has reached the end of its life cycle.

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