In-flight Wi-Fi: Smart airlines listen to Asia Pacific passenger demand Wi-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-Fi Passengers 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.

93% of frequent flyers say the availability of in-flight Wi-Fi influences their choice of airline

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%

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

16% of Asia Pacific passengers choose IFE as their preferred in-flight serv