Market Information

  • Market Information

    • Air passenger demand is increasing globally (3.8%) and is forecast to double by 2034.

    • With nearly every passenger using a smart device as an essential travel tool, the demand for more tech-enabled services from airlines and airports is on the rise.

    • 61% of respondents to the 2017 SITA passenger survey indicated that they would use or like to use their mobile devices to access information about their flight, during their flight.
    • Currently 3.8 billion passengers fly annually, but only 25% of planes offer onboard WiFi of any kind; by 2035, high quality, secure in-flight WiFi is expected to be ubiquitous.

    • High quality in-flight WiFi connectivity has been seen to deliver a 23% premium over the average passenger due to their expenditure on ancillary revenue, with airlines forecast to generate $0.9 billion in 2018 in broadband-enabled ancillary revenue.

    • Airlines and airports are estimated to have spent nearly US$33bn on passenger technology solutions in 2017. Airlines' spend as a percentage of revenue rose to an estimated 3.30% or US$24.3bn in 2017.

    • Investment in passenger self-service, cyber security and cloud services is said to be at the top of the agenda for CIOs at both airlines and airports.

    • Today, the vast majority of airlines provide check-in (73%), boarding (70%) and flight status notifications (68%) via mobile, and by 2020 more than 97% plan to do so. A key area of growth will be providing real-time flight updates over social media, which will jump from 31% of airlines doing so to 92% in the next three years.

    • Providing a seamless experience is key to airlines. In total, 94% rate streamlining services into a single app as a priority, with 58% rating this as a high priority, whilst 67% of passengers in the 2017 SITA passenger survey stated a preference for using their mobile devices to acquire this information.

    *Source: Grous, A, 2017. LSE Sky High Economics. Chapter One: Quantifying the commercial opportunities of passenger connectivity for the global airline industry

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