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A closer look into passenger trends
digEcor, Inc. discuss the results of its 2011 Passenger Survey
In 2010, handheld inflight entertainment provider digEcor, Inc. released market research on passenger trends in IFE, content and ancillary revenue. Due to the overwhelmingly positive response, the digEcor team conducted all new research of passengers worldwide and released the 2011 report late in the year. Marketing Director Adam Williams elaborated on the methodology: “We surveyed 542 passengers from the United States, Canada, England, France and Australia. All the respondents were required to have flown at least once in the last year. More than half fly every six months or more often. And 68 percent of the respondents are between the ages of 26 and 60.” This new report covers hot topics in
IFE hardware, connectivity pricing and demand, content preferences and ancillary revenue sources such as inflight shopping and advertising. digEcor shared some of the findings from the report. Speaking on hardware preferences,
Williams said: “One of the biggest debates of late is what is going to happen to embedded systems as connectivity and the use of personal devices expand. LinkedIn, in particular, has been alight with commentary from all sides of the industry. One of the questions we asked was about the type of inflight entertainment system passengers prefer. Forty-five percent responded in favour of a seat back system. The number jumps to above 60 percent for individuals older than 60. “Passenger owned handheld devices, such as iPads or smartphones, average about 30 percent but plummeted among the crowd over 60.” The report also shows that some of the key features of an IFE system include, in order, destination information, daily news and weather, a power outlet for personal devices, food and beverage ordering and a moving map. Offering connectivity is often seen as a competitive advantage or service offering. However, respondents said that the availability of inflight Internet was the least important
factor in the buying decision, as compared to other factors such as price, number of stops, meal service, IFE system type and frequent flyer programme. Further, as passengers age, the impact inflight Internet has on the buying decision decreases. Gogo recently released its financials as part of a bid for an initial public offering (IPO). Uptake rates hovered at around 4 percent.
One of the challenges facing connectivity is that passengers are unwilling to pay. Business Travel News released in May 2010 the results of a survey that asked corporate travel managers whether or not they reimburse for inflight Internet. From the report, “Of the 230 respondents who guide corporate travel policy within their organisations, only 34 percent said it's OK for travellers to unsheathe their corporate cards to access Wi-Fi on all flights, though an additional 7 percent said they would reimburse wireless Internet access costs, but only for intercontinental or long-haul flights. The remaining 59 percent majority said travellers are on their own when it comes to paying onboard Wi-Fi expenses, regardless of the length of haul.”
Challenging some long held
beliefs, both the 2010 and 2011 reports show that passengers are just as happy, if not more so, to watch popular classic titles as to watch less popular early window titles. In other words, “passengers care about the quality of the movie and not just whether or not it’s early window.” Popular early window titles still trump all other categories. A long time believer in the potential for inflight ancillary
revenue programmes, digEcor also tested how much passengers are likely to spend inflight if the right products and services are on offer. Decreasing from the year before, passengers spend threshold peaked at just $25. Popular buy categories included gifts, travel related products, books and electronics.
The full 2011 Passenger Survey Results are available as a free download from digEcor at
http://goo.gl/QtG5q
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