The planned stadium tour dates featuring the final eight contestants of the BBC One talent show were cancelled due to a lack of interest.
James explained that he was "gutted" when he was told about the cancellation in a phone call.
"I was really looking forward to it. There are certain friends that I made on that show," he told BBC News.
"We lived in a strange bubble together and became very close, so I was looking forward to going out there with them.
"The amount of people who spoke to me on Twitter who had been looking forward to it, I'm really gutted for them too. No-one has really explained the reason to me.
"Maybe they oversold it and thought it was going to do better than it would do. It's a shame."
James added that he still enjoyed his experience on the show and remained positive about its fall in ratings over the course of the series.
"All I can say is that if you're in that show, it's not something you pay any attention to.
"I think one of the worst weeks was something like five million [viewers]. I'm still grateful for the opportunity to perform in front of five million people."
Tyler James - who is said to be working on his next album - proved to be the most popular contestant in terms of downloaded tracks, when he was the only person to reach the top 40 since the show's completion.