In-flight Wi-Fi: Smart airlines listen to Asia Pacific passenger demandWi-Fi is a differentiation point for passengers
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In-flight Wi-Fi is a rapidly developing service offering in Asia Pacific countries and is already widely popular with passengers, which presents a good opportunity for growth. With only 3% of the aircraft operating today in APAC offering Wi-Fi, airlines can use Wi-Fi as a key differentiation point.
Business flyers in the region are early adopters of in-flight connectivity (IFC) with higher levels of take up on business flights and more experience of previous in-flight Wi-Fi usage than other passenger segments. Business flyers are also more likely to recognise the value of paying for high speed in-flight Wi-Fi, suggesting they are less price-sensitive and more quality focused than the leisure traveller.
However, as more and more aircraft fleets get connected, passengers are expecting Wi-Fi to be offered in-flight and airlines that will not offer it are falling short of passengers’ expectations and risk losing customers. This will affect younger passengers and business passengers in particular who feel that in-flight connectivity (IFC) can deliver on all of their in-flight needs, a trend that seems to appear in all countries in Asia Pacific.
Furthermore airlines can use IFC to increase ancillary revenues as the majority of passengers are willing to pay for in-flight Wi-Fi, especially those in the younger age groups.
Chart 7 64% If I had Wi-Fi on board my flight, I wouldn't need any other in-flight entertainment
66% Under 34 yo
68% Business travellers
66% China
68% India
54% Singapore
59% Australia
45% New Zealand
53% Malaysia
Chart 8
67%
68% Under 34 yo
55% Over 45 yo
Willingness to pay
65% China
69% India
63% Singapore
70% Australia
77% New Zealand
69% Malaysia
Chart 8
67%
68% Under 34 yo
55% Over 45 yo
Willingness to pay
65% China
69% India
63% Singapore
70% Australia
77% New Zealand
69% Malaysia
Chart 6
Business: I would pay more for faster in-flight Wi-Fi. 74%62% Total: I would pay more for faster in-flight Wi-Fi.
62% of all passengers would pay for faster in-flight Wi-Fi
74% of business travellers would pay for faster in-flight Wi-Fi
Strong passenger demand for in-flight Wi-FiPassengers are highly influenced by the availability of in-flight Wi-Fi when choosing airlines and actively seek the opportunity to travel with in-flight connectivity.
Although, almost half of flyers in Asia Pacific have not had the opportunity to connect to in-flight Wi-Fi, more than three quarters of them would like to use the service in-flight.
Demand is so strong that 86% of them indicate availability of in-flight Wi-Fi would influence their choice of airline. This is especially prevalent in China where 90% of passengers feel that the availability of in-flight Wi-Fi would influence their airline choice.
Chart 9 – c9 How likely would you be to use IFC on
these flight lengths?
42%
60% 69% 70% 72%
0%
10%
20%
30%
40%
50%
60%
70%
80%
<1.5 hours
1.5-3 hours
3-6 hours
6-12 hours
>12 hours
Chart 4
Top In-flight Wi-Fi Activities Representing All Age Groups
54%
49%
47%
39%
Travel apps
Airline's app/ site
Web browsing
Social Networks
A clear opportunity for the implementation of in-flight Wi-Fi is on longer haul flights, but interestingly almost half of passengers would be willing to use the service on flights less than 3 hours in duration. This could suggest a further opportunity for in-flight connectivity on short haul flights where in-flight entertainment (IFE) is less prevalent.
The majority of Asia Pacific passengers prefer to use their smartphones to access in-flight Wi-Fi, with activity mostly concentrated on accessing either general travel or airline specific applications and websites. Web browsing is particularly popular with Malaysian passengers with 66% ranking this as their top activity in-flight. In China, social networking is more popular than average with 43% of passengers wanting to access social networks whilst in-flight.
In China 60% of passengers, above average, would choose Wi-Fi as their preferred in-flight service, over a meal or traditional in-flight entertainment (IFE).
This pattern remains across all lengths of flights, for long haul as well as short haul. In fact, in-flight entertainment (IFE) does not meet current passengers’ needs with only 16% of Asia Pacific passengers (18% long haul) choosing IFE as their preferred in-flight service.
Demand for in-flight Wi-Fi has overtaken traditional In-Flight Entertainment (IFE)Wi-Fi is so important for passengers in Asia Pacific that more than half of all passengers would prefer it over a meal or traditional In-Flight Entertainment (IFE).
54%
18%
16%
8%
4%
In-flight Wi-Fi
Meal provided by airline
In-flight entertainment
system
Duty-free goods
In-flight magazine
Preferred service
If you had a choice of one of the below services being provided to you in the cabin on a flight,
which would you choose?
“
” Wi-Fi
Meal
IFE
Duty-Free
Magazine
57%
15%
18%
6%
3%
In-flight Wi-Fi
Meal provided by airline
In-flight entertainment
system
Duty-free goods
In-flight magazine
Long Haul Flyers
Wi-Fi
Meal
IFE
Duty-Free
Magazine
Chart E4A
Preferred service
If you had a choice of one of the below services being provided to you in the cabin on a flight,
which would you choose?
“
All Flyers
54%
18%
16%
8%
4%
In-flight Wi-Fi
Meal provided by airline
In-flight entertainment
system
Duty-free goods
In-flight magazine
Preferred service
If you had a choice of one of the below services being provided to you in the cabin on a flight,
which would you choose?
“
” Wi-Fi
Meal
IFE
Duty-Free
Magazine
57%
15%
18%
6%
3%
In-flight Wi-Fi
Meal provided by airline
In-flight entertainment
system
Duty-free goods
In-flight magazine
Long Haul Flyers
Wi-Fi
Meal
IFE
Duty-Free
Magazine
Chart E4A
Preferred service
If you had a choice of one of the below services being provided to you in the cabin on a flight,
which would you choose?
“
All Flyers
54%
18%
16%
8%
4%
In-flight Wi-Fi
Meal provided by airline
In-flight entertainment
system
Duty-free goods
In-flight magazine
Preferred service
If you had a choice of one of the below services being provided to you in the cabin on a flight,
which would you choose?
“
” Wi-Fi
Meal
IFE
Duty-Free
Magazine
57%
15%
18%
6%
3%
In-flight Wi-Fi
Meal provided by airline
In-flight entertainment
system
Duty-free goods
In-flight magazine
Long Haul Flyers
Wi-Fi
Meal
IFE
Duty-Free
Magazine
Chart E4A
Preferred service
If you had a choice of one of the below services being provided to you in the cabin on a flight,
which would you choose?
“
All Flyers
54%
18%
16%
8%
4%
In-flight Wi-Fi
Meal provided by airline
In-flight entertainment
system
Duty-free goods
In-flight magazine
Preferred service
If you had a choice of one of the below services being provided to you in the cabin on a flight,
which would you choose?
“
” Wi-Fi
Meal
IFE
Duty-Free
Magazine
57%
15%
18%
6%
3%
In-flight Wi-Fi
Meal provided by airline
In-flight entertainment
system
Duty-free goods
In-flight magazine
Long Haul Flyers
Wi-Fi
Meal
IFE
Duty-Free
Magazine
Chart E4A
Preferred service
If you had a choice of one of the below services being provided to you in the cabin on a flight,
which would you choose?
“
All Flyers
Chart
When I can connect to Wi-Fi, my in-flight experience is
much better. “
”
85% agree
89% China
84% India
72% Singapore
69% Australia
55% New Zealand
73% Malaysia
Quality is key to take up of In-Flight Wi-Fi in Asia PacificPassenger take up is driven by high quality of service, and passengers are even keen to pay more for it. If airlines can reach the balance between price and quality, then there is potential for growth in usage.
Chart 7
I would pay more for faster in-flight Wi-Fi “
”62%
APAC
68% China
69% India
38% Singapore
45% Australia
24% New Zealand
41% Malaysia
Choosing the right partner Airlines must carefully choose the right partner that will support them in offering a reliable service and high quality broadband experience throughout their passengers’ flight. Secondly, as passenger Wi-Fi activities vary, airlines need to choose the right partner that can tailor its proposition to fit each specific airline’s passenger needs, to drive take-up rates and keep passengers happy while providing additional value to the airline versus competing offers in the market. Last but not least, the right partner is the one that is focused on continuously improving performance and economics for airlines and their passengers by investing and innovating to remain ahead of the curve.
61% 72%
52%
LATAM APAC Europe
Chart 6
I prefer not to use Wi-Fi if I know it is not of high quality “ ”
76% China
55% New Zealand
61% 72%
52%
LATAM APAC Europe
Chart 6
I prefer not to use Wi-Fi if I know it is not of high quality “ ”
76% China
55% New Zealand
When passengers talk about quality, the key issues they are concerned with are Reliability & Availability (that a connection does not drop out or cut off and is available throughout the flight), and connection Speed. For flyers in Asia Pacific, quality is even more important than price and passengers are even prepared to pay more for a quality service. With 62% of passengers agreeing that they would pay more for faster in-flight Wi-Fi. This trend is especially evident in India and China where almost 70% of passengers would pay more for faster in-flight Wi-Fi.
Passengers crave connectivity and are prepared to pay for it because in-flight Wi-Fi offers freedom of choice: choice of activities, choice of content, choice of interacting and sharing with different people. It is this freedom that makes the experience in-flight similar to the ground and the experience of flying a seamless transition from the office or the home to the sky.
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A note about the data: GfK has surveyed more than 9000 airline passengers across the globe. The survey covered all lengths of flight and is the largest known survey of its kind.
In August-September 2015, GfK conducted an online survey amongst more than 6000 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. In February-March 2016, GfK extended the scope of the study in the same markets and adding also Brazil, Chile, Colombia, Mexico, Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Thailand, Singapore, and South Korea, with more than 3000 additional respondents.
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