In-flight broadband takes off in Europe - why airlines can no longer afford to wait. Change is in the Air. AVIATION > Connectivity > Research
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1 In-flight broadband takes off in Europe - why airlines can no longer afford to wait Change is in the Air AVIATION > Connectivity > Research
2 In a highly competitive market, airlines are fighting for a way to stand out from the crowd. With so many options available to passengers when booking a flight, airlines understand the importance of differentiation based on an enhanced in-flight experience. Large-scale investments are being made in complex programmes such as cabin redesigns to keep pace with passenger needs, but there is one demand that airlines can meet today with a speedier return on investment: in-flight connectivity. We recently surveyed more than 6,000 airline passengers from 13 European countries to get their views on in-flight connectivity; across all markets passengers are crying out for a quality onboard broadband service. Why now? Passengers are used to being constantly online via their personal devices, and no longer see why flying should deny them access to the internet. In fact, up to 37% of business travellers and frequent flyers the most valuable groups to airlines - are addicted to their devices, indicating that they use their smartphones for activities such as internet browsing and so often that they lose track of how many times per day. Percentage of passengers who use their smartphones for these activities so often that they lose track Internet browsing Instant Messenger 0% 10% 20% 30% 40% 32% 37% 35% 35% 35% 34% Social networks 31% 31% 27% 28% 28% 27% Business flyers Frequent flyers (Those belonging to frequent flyer programmes) Non-business flyers
3 64% agree that in-flight connectivity solves a need for them
4 80% of passengers indicate they would use connectivity the next time they fly
5 Interestingly though, business flyers want access to non-business related activities (such as using social networks) as much as or even more than non-business passengers; for business flyers there appears to be no distinction between the need to be online for work or fun. The result of this reliance on mobile devices is that European passengers who have had the opportunity to connect their devices to in-flight internet have seized it. 85% of those who had access to in-flight connectivity used it. But there is still a huge market whose needs are not being met. Passengers want access to the internet in order to continue their everyday online usage. But more than this, passengers are also looking towards their devices for personalised entertainment during their flight, such as online games, video, streaming music services, or access to their favourite apps. Current demand - Activities that all age groups want to do on their smartphones in-flight Internet browsing 55% 55% Instant Messenger Social networks 43% 45% 0% 20% 40% 60% Future demand - Activities year olds want to do on their smartphones in flight Games 43% Short video clips 37% Apps Streaming music services 27% 27% 0% 20% 40% 60%
6 Why should an airline make the investment? This desire for in-flight connectivity impacts on airline choice. Airlines with onboard internet access are more attractive to passengers than those that do not offer it. This is even truer of business passengers and frequent flyers, whose choice of airline is more likely than average to be influenced by in-flight connectivity. Airlines that fail to cater to these passenger needs could find themselves losing passengers to their competitors. 67% agree Any airline that values their customers should offer the option to connect their devices to internet in-flight 75% Business Passengers 73% Frequent Flyers 69% agree All things being equal, I would prefer to fly with an airline that offers internet connectivity onboard 76% Business Passengers 73% Frequent Flyers
7 83% agree In the next 5 to 10 years, all aircraft will offer internet connectivity By offering in-flight connectivity now, airlines can seize the opportunity to demonstrate their commitment to meeting the needs of passengers. Airlines not offering internet onboard run the risk of being seen as being out of touch with modern-day flyers. This is especially true in light of the fact that some airlines are already offering onboard connectivity to their passengers. Early adoption offers the chance to differentiate from competitors; late provision of in-flight connectivity means an airline has to work harder to not be seen as one of the pack. It seems inevitable to passengers that all airlines will provide onboard internet access in the not-too-distant future, and since it s now possible to offer the same high standard of connectivity in the air that has previously only been available on the ground why wait? Beyond promoting a positive brand image, investing in in-flight connectivity offers the promise of a monetary return. 67% of passengers who want to connect their devices in-flight would pay to use the onboard access. Tellingly, this is even higher amongst younger age groups, whose reliance on personal devices means they are more open to paying for online connectivity. However, to justify the investment, the service must be high quality and reliable. With broadband internet onboard increasingly becoming a given, the quality of the service will be the differentiator for airlines. They need to choose a broadband service provider that can ensure a consistently high quality service or they risk losing passengers to a competitor airline. Airlines are currently at a key turning point. Embracing the possibilities offered by in-flight connectivity enables an airline to stand out for valuing its passengers and understanding their needs, whilst also developing a further source of revenue generation. Can any airline afford to miss this opportunity? Willingness to pay across passenger age groups % % 60% 65% 70%
8 In August-September 2015, Inmarsat & GfK conducted an online survey amongst more than 6,000 people who had taken a flight within Europe in the past year and who had carried with them at least one personal device (smartphone, tablet or laptop) on a flight before. The survey was conducted in 13 markets: Austria, Belgium, France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK Contact us Corporate Communications media@inmarsat.com inmarsat.com inmarsat.com/aviation While the information in this document has been prepared in good faith, no representation, warranty, assurance or undertaking (express or implied) is or will be made, and no responsibility or liability (howsoever arising) is or will be accepted by the Inmarsat group or any of its officers, employees or agents in relation to the adequacy, accuracy, completeness, reasonableness or fitness for purpose of the information in this document. All and any such responsibility and liability is expressly disclaimed and excluded to the maximum extent permitted by applicable law. INMARSAT is a trademark owned by the International Mobile Satellite Organisation, the Inmarsat LOGO is a trademark owned by Inmarsat (IP) Company Limited. Both trademarks are licensed to Inmarsat Global Limited. All other Inmarsat trademarks in this document are owned by Inmarsat Global Limited. Inmarsat Global Limited All rights reserved. In-flight braodband takes off. September 2015.
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