ANCILLARY REVENUE
Top right: Apple iPad mini; below: Motorola i867 Android smartphone; bottom: Apple iPad
services, in a very public way. Pinterest is the latest social media offering, with some 25 million unique visits in October 2012. British Airways is one of the latest airlines to experiment with its idea- and photo- sharing model – watch this space.
Smartphones and tablets In an industry prone to revolution, here comes another one: This year has been the year of smartphone and tablet adoption, and Samsung and Apple currently dominate the market. In a pre-Christmas report, global market intelligence firm, IDC, estimated that 362 million connected devices would be shipped worldwide over the holiday period.
That is an increase of 55.8% over last year’s numbers. This popularity is at the expense of the PC, which is on the decline.
With the increase in take-up of both tablets and smartphones, the trend
smart devices. This all makes for a very viable revenue source for airlines.
Cue new technology companies offering airlines complete WiFi solutions. Last
September: ARINC Incorporated announced a deal with Virgin Atlantic Airways to supply its new on-board WiFi solution, Cabin Connect. This enables passengers to access the internet directly from their own personal devices, whether laptop, smartphone, tablet, or gaming device. Users simply log on to the system
through a hotspot portal to start using the service inflight. Virgin Atlantic was the first
airline customer and will introduce the service to its passengers on a trial basis on three Airbus A330
aircraft in early 2013.
But it’s not just the passengers using tablets onboard. A simple, cost-effective way to incentivise flight attendants is to give them an iPad. Allegiant Systems gives them one loaded with FlyDesk's solution that digitizes reports, manuals, provides a secure communication tool, and facilitates buy- on-board programmes. Attendants can add their favourite music, apps, games, and movies, and enjoy the iPad at home as well.
This is also good for airlines. FlyDesk
creates a ‘paperless’ operation, cutting back on onboard weight and saving fuel and is away from
airlines charging a fee for downloadable
movies and games on their own system, and towards charging for WiFi access so that passengers can use their own mobile devices while onboard.
Research shows that one-third of passengers (and a much higher proportion of business travellers and younger adults) already carry their smartphones or tablets onboard, for entertainment and retail connectivity. A recent survey by IMS found that on flights lasting longer than an hour, passengers spent upwards of 40% of their time using their
paper. It is easier to deliver updates to staff and allows them to do their jobs (including reporting) more quickly and efficiently. A corollary of the takeup in tablets and smartphones is that they are now being used to book flights too. In fact, as Shital Chheda, of Google, said at the Mega Event in November 2012: “Online air bookings are growing faster than offline.” The growth in queries about airline bookings is being driven by mobile and tablet, with 44% of the total online queries projected for 2013, and no growth in desktop- generated queries.
The conclusion is that mobile bookings on airline sites will triple by 2014, from just over $2 billion in 2012.
Chheda pointed out
the importance of optimising airlines’ websites for mobile
access. Research has shown that 47% of users expect a mobile page to load in two seconds or less. One second delay means 7% fewer conversions.
He also points out that the sites should be designed for travellers, make good use of maps, and have an easy-to-use, reliable payment system.
There’s nothing new in history, they say. All this is reminiscent of the early days of the web and e-commerce, when companies were reluctant to commit to selling online, and most websites looked like magazine pages. Not every innovator was rewarded with success, but those whose business model did not fit the new technology were surely doomed. Encyclopaedia Britannica, anyone?
www.airsavings.net
www.ideaworkscompany.com www.g4systems.aero
CONTACT US
OnBoard Hospitality's AR Focus is now a regular feature. If you have a new product, new technology, a relevant report, or a new partnership to announce do email richard@appinpublishing.
co.uk (text only, please). Please send any picture files, marked AR in the subject line, direct to
jo.austin@
onboardhospitality.com.
www.onboardhospitality.com 109
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124