market sizing: Avg price of flight ticket in a country? How to calculate?

A few thoughts on this:

• Price differs by airline: full service carrier vs. low cost airline
• Price differs by flight duration: short flight vs. long-haul flight
• Price differs by booking class: first class, business class, coach
• Price is dependent from available alternatives (trains etc.) and geography
• Price is connected to free disposable income and willingness-to-pay

Calculation scheme:

• Let's assume any European country.
• Price indicated as round-trip tickets.
• European flights:
  • Coach:
    • 50 EUR for low-cost airlines (Ryanair)
    • 150 EUR for full service carriers (Lufthansa, BA)
  • Business:
    • Let's assume low-cost airlines do not have business class.
    • 300 EUR
  • No first class on European flights
• Medium/long-haul flights:
  • Coach:
    • Low-cost airlines: 600 EUR
    • Full service carriers: 1,200 EUR
  • Business:
    • Full service carriers: 5,000 EUR
  • First:
    • Full service carriers: 10,000 EUR
• Let's talk about proportions:
  • Percentages by Coach/business/first:
    • European flights: Assume an average jumbo jet has 40 rows, 5-6 rows are dedicated for business travellers. Which leads to:
      • Economy: 85%
      • Business 15%
      • First 0%
    • Medium flights:
      • same as above
    • Long-haul flights: Consider 777,787,A380: 600 passengeer seat capacity on average per flight. 40-60 passengers in the business class (10%). 5% in the first class. Which leads to:
      • Economy: 85%
      • Business 10%
      • First 5%

• European flights are dominated by low-cost airlines, therefore:
  • Average coach price will slightly above the price for the low-cost airlines, e.g. 80 EUR
  • Low cost carriers provide no business class, therefore the business class ticket will cost on average 300 EUR
  • The average price on European flights will be therefore: 80 * 0.85 + 300 * 0.15 = 68 + 45 = 113 EUR
  • Sanity check: average price on German railways is between 50-200 EUR
• Medium and long-term flights are more dominated by full service carriers
  • Average coach price will be somewhere between 600 and 1,200 EUR. More on the upper bound: 1000 EUR
  • Business class ticket will cost on average 5000 EUR
  • First class: 10000 EUR
  • Which leads to 1000 * 0.85 + 5000 * 0.1 + 10000* 0.05 = 850 + 500 + 500 = 1850 EUR
• Consider now the split between European and medium/long-haul flights. Local flights have significantly higher frequency at the airports, therefore we assume 70% of flights are European flights. Which leads to 113 * 0.7 + 1850 * 0.3 = 79.1 + 555 = 634.1 EUR