Procurement Market Intelligence Report
Domestic Air Travel
Sourcing Guide & Market Intelligence
Smarter cost management starts with comprehensive market intelligence
United States
Europe
Global
Quick Navigation
Domestic Air Travel Global Overview
Definition
Summary
Domestic air travel includes scheduled passenger routes within the United States. Airlines are the dominant suppliers in this market, but corporate travel management companies, travel agencies and online travel aggregator companies also provide booking services. This market's primary buyers include both financial and non-financial companies, energy companies, manufacturers, and consumers.
This Report Includes:
- First-Class Domestic Passenger Flights
- Business-Class Domestic Passenger Flights
- Economy-Class Domestic Passenger Flights
Not in this Report:
- International Air Travel
- Aircraft Charter Services
- Air Cargo Transport
Global Domestic Air Travel Procurement Trends
Discover the top international trends affecting procurement in the global Domestic Air Travel market.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Global Domestic Air Travel Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 United States | 10,430 |
| #2 China | 8,565 |
| #3 Europe | 4,420 |
Explore supplier concentration across the globe
We've uncovered the 11 top regions for global procurement, based on feedback from our most strategic clients. Access vendor counts for each unique region when you subscribe.
2
Geography Drilldown - US & Europe
Average Cost of Domestic Air Travel
United States
2026 Market Pricing$59.00 to $X,XXX.XX
per round-trip ticketEurope
Average Price
Prices in the Domestic Air Travel market range from $59.00 to $X,XXX.XX, depending on Ticket Class, Flight Distance, Route Competition, Timing of Purchase and Timing of Flight. For example, lower prices are associated with Economy class ($59 to $650), whereas higher prices are associated with First class ($300 to $1,300) and Business class ($100 to $1,100).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Domestic Air Travel Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Domestic Air Travel market, prices in the US have grown 2.2% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Europe is +2.8%.
United States (2022-2025)
Europe (2022-2025)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Domestic Air Travel
Total cost of ownership is Low in the Domestic Air Travel market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Emergencies may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Billed During
Consumables
Unforeseen
Emergencies
Cancellations
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -2.2 in the United States. Buyer power is most positively impacted by Market Share Concentration. It is most negatively impacted by Product Specialization. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as High, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Aircraft, Engine & Parts Manufacturers
- Gasoline & Petroleum Wholesalers
- Airports
2nd
Tier Suppliers
- Machine Shops
- Gasoline & Petroleum Bulk Stations
- Security Services
Biggest Domestic Air Travel Suppliers in the US by Revenue
The largest Domestic Air Travel vendors by revenue in the US are Alaska Air Group Inc, Expedia Group, Inc. and Booking Holdings Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| United Airlines Holdings, Inc. | Global | CHICAGO, IL | >10,000 | 10-15 | ||||
| Southwest Airlines Co. | Global | DALLAS | >10,000 | 10-15 | ||||
| Delta Air Lines, Inc. | Global | ATLANTA, GA | >10,000 | 15-20 | ||||
| American Airlines Group Inc. | Global | FORT WORTH, TX | >10,000 | 15-20 | ||||
| American Express Co | Global | NEW YORK | >10,000 | < 5 | ||||
| Booking Holdings Inc. | Global | NORWALK, CT | >10,000 | < 5 | ||||
| Expedia Group, Inc. | Global | SEATTLE, WA | >10,000 | < 5 | ||||
| Alaska Air Group Inc | International | SEATTLE, WA | >10,000 | < 5 | ||||
| Carlson Companies Inc. | Global | Minnetonka, MN | >10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Domestic Air Travel market is 3.7% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Domestic air travel providers are currently operating with low profit margins due to high price-based competition among vendors. Consequently, the average vendor’s financial risk is high, which impedes their ability to reduce rates without risking insolvency and increases the risk that buyers will lose access to a preferred supplier, including any rewards points they may have accumulated.
Consolidation among airlines has been a decades-long trend following the deregulation of the airline industry. Market share concentration is consequently high, with the top four suppliers (American Airlines, Delta Airlines, Southwest Airlines, and United Airlines) controlling an estimated 65.0% of the market.
Upstream supply chain risk is high due to the extreme volatility of oil markets, which largely determines the cost of operating flights.
The United States is a net exporter of jet fuel due to its robust oil and gas sector, access to natural resources, and petroleum refining capabilities. This limits competition in the market, making buyers more susceptible to price fluctuations from providers.
Supplier Information
Southwest Airlines Co.
Southwest Airlines Co. is a holding company for the passenger airline Southwest Airlines. Its operating subsidiary provides scheduled air transportation in the United States, the District of Columbia, the Commonwealth of Puerto Rico, and near-international markets, including Mexico, Jamaica, The Bahamas, Subscribe to learn more
United Airlines Holdings, Inc.
United Airlines Holdings, Inc. is a public company operating globally. The company's offerings include domestic air cargo transportation services, international air cargo transportation services, international air travel and domestic air travel. Founded in 1968, the company is currently headquartered in CHICAGO,... Subscribe to learn more
American Airlines Group Inc.
American Airlines Group Inc. is a public company operating globally. The company's offerings include domestic air cargo transportation services, international air cargo transportation services, international air travel and domestic air travel. Founded in 2013, the company is currently headquartered in FORT... Subscribe to learn more
Delta Air Lines, Inc.
Delta Air Lines, Inc. is a public company operating globally. The company's offerings include domestic air cargo transportation services, international air cargo transportation services, international air travel, domestic air travel and aircraft charter services. Founded in 1925, the company is currently Subscribe to learn more
Alaska Air Group Inc
Alaska Air Group, Inc. is a holding company engaged in the ownership, management, and operation of airline and air transport service companies. Its operating subsidiaries include Alaska Airlines Inc. and Horizon Air Industries Inc. Its business comprises three segments: Mainline, which includes scheduled Subscribe to learn more
American Express Co
American Express Co is a public company operating globally in the information, finance and insurance and administration, business support and waste management services sectors. The company's offerings include travel management software, international air travel, domestic air travel, payroll card services,... Subscribe to learn more
Bcd Holdings N.V.
Bcd Holdings N.V. is a private company operating globally in the administration, business support and waste management services sector. The company's offerings include domestic air travel, corporate travel services and travel risk management services. Founded in 1975, the company is currently headquartered... Subscribe to learn more
Booking Holdings Inc.
Booking Holdings Inc. is a public company operating globally. The company's offerings include domestic air travel. Founded in 1996, the company is currently headquartered in NORWALK, Connecticut, United States of America with an estimated 21600 employees. Subscribe to learn more
Carlson Companies Inc.
Carlson, Inc. is a private company operating globally. The company's offerings include international air travel and domestic air travel. Founded in 1938, the company is currently headquartered in Minnetonka, Minnesota, United States of America with an estimated 18500 employees. Subscribe to learn more
Accelerate the vendor selection process
Get a clear picture of the competition in a market and discover which vendors are best-suited for your sourcing needs. Our supplier profiles include hard-to-find financial ranges for private companies, cover public company data and feature an interactive competitor matrix.
Procurement Management KPIs for the Domestic Air Travel Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Adjustments To Schedule and Average Time Between Failures. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on On-Time Performance and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Adjustments To Schedule |
|
Number of flight cancellations Number of flights delayed Number of flights rescheduled |
Buyers may face disruptions to their operations if flights are frequently canceled, delayed, or rescheduled. Suppliers should provide a written update to buyers as soon as changes to a flight schedule are made and should provide reasoning for why the flight schedule was altered. |
| Average Time Between Failures |
|
Average time between failures Type of failure(s) Severity of failure(s) Resolution time |
While the risk of critical malfunctions is low for airline providers, frequent machinery or operational failures indicate a lack of proper maintenance or training. Frequent failures pose a safety risk to passengers and have the potential to severely disrupt buyers' business operations |
|
|||
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Key Relationships
What airlines do you get volume-based discounts through?
How did you select these airlines to partner with?
Service Performance
What are the on-time arrival rates, mishandled baggage rates and completion factors for the airlines you book flights with most frequently?
What are the customer service reputations for the airlines you book flights with most frequently?
Experience and Expertise
How long have you been in business?
What portion of your business is corporate?
The ultimate prep for procurement negotations
View all 29 negotiation questions for this category when you subscribe.
Domestic Air Travel RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organizational structure, including the industry in which they operate.
Buyers should describe their reason for business travel and the goals that will be achieved through this contract.
Statement Of Need
Buyers should provide a list of the destinations or airports that they will require air travel to and from.
Buyers should state their historical travel volumes to help vendors understand the size of the contract.
Project Budget
Buyers should state their total annual budget for the contract.
Buyers should request a detailed breakdown of the ancillary costs that will be charged outside of the ticket price, including baggage and seat selection fees.
The RFP process made easy
Find out how you can access RFP templates for 800+ procurement categories to start writing better, more consistent RFPs.
We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
