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Home / Press Releases / Automotive & Transport / One-Third of U.S. Passengers Choose Airline if it Offers WiFi
Press Releases
One-Third of U.S. Passengers Choose Airline if it Offers WiFi
Date: 03 July 2012
A new airline passenger survey focusing on U.S. travellers’ experience of in-flight Wi-Fi, conducted by IMS Research (recently acquired by IHS Inc. (NYSE:IHS)) found that more than 60 percent of passengers who used cabin Wi-Fi are likely to use it again in the future. With in-flight Wi-Fi services growing rapidly in the U.S. in the last couple of years, more than 40 percent of respondents who have flown in the past year have used the service, either as part of a promotion or by paying for it.
The survey also revealed that 67 percent of respondents who paid for their in-flight Wi-Fi are inclined to use the service again, compared to only 12 percent who indicated it would be unlikely for them to pay again. However, for those who have yet to experience internet access at 30,000 feet, only 20 percent of respondents would consider themselves likely to use in-flight Wi-Fi on a future flight. The survey findings indicated a generally positive experience from those who have used the Wi-Fi offered.
“In-flight Wi-Fi is not new, but still poses a major investment dilemma for airlines already squeezed by rising costs,” says Rose Yin, market analyst with IMS Research. “Apart from the usual issues of choosing the right connectivity solution for the airline and overcoming any bandwidth limitations, one of the main concerns is whether airlines can get a return on this investment. So far, it has been hard to make much additional profit from offering in-flight Wi-Fi for airlines, particularly as it’s not always clear which passengers are willing to pay for it.”
The profile of the ‘average’ passenger is different from the average Joe, as they are likely to have more disposable income. For airlines it is essential that they identify those passengers who cannot resist paying to log onto the internet when it’s offered on-board. “If we assume that the potential users of in-flight Wi-Fi will be similar to those in the U.S., then we can expect them to be those under the age of 45, male, and carrying a laptop PC on-board, where the average paying user might also come from a household with close to $90,000 of annual income,” Yin added, “Of course, you will also need to consider what other forms of in-flight entertainment are available. The survey told us that most people were using in-flight Wi-Fi for leisure purposes, which may be a result of a lack of a comparable entertainment system on-board. The take-up rate might be different if a personal in-flight entertainment system is offered for free, as many long-haul flights do.”
A positive for the industry is that, despite some perceptions that people would not use the inflight Wi-Fi if they have to pay, and that bandwidth quality has been raised as one of the main quality issues, the survey found that 70 percent of those who had to pay for their inflight Wi-Fi thought it was value for money. In fact, almost a third of the respondents indicated that they have chosen to fly with one airline because they knew it offered inflight Wi-Fi, and over a third who did not, would consider doing so in future.
Broadly, many passengers have a positive view of in-flight Wi-Fi and are willing to use it repeatedly, even if they have to pay. Furthermore, a significant portion of passengers are willing to choose a carrier based on whether it has Wi-Fi or not. The message for airlines is clear: Even if in-flight connectivity cannot always be made to be profitable, offering it will become increasingly important for retaining passenger share.
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