Sit back, relax and enjoy your flight – an opportunity for digital detox? Far from it!
Airlines are using the significant customer demand for internet connectivity on board to enhance their loyalty programs
“Sit back, relax and enjoy your flight” conjures images of passengers relaxing into a meditative state as they glide through the sky. But this may be a vision which stems from a bygone time. In our digital era the elements which create a state of relaxation have changed. Meditative music or a podcast streamed on a smartphone are a more likely modern scenario to support relaxation – even high above the clouds.
It is not just meditation which people indulge in to relax. Staying connected, chatting with friends and family or keeping up with the latest news are ways many people spend their free time. Just look around – on trains, in town, in airports everyone appears to be on their phone. For some, staying connected is even essential to avoid stress. The demand for seamless internet connectivity also extends to the time spent on board an aircraft, which is one of the hardest environments to provide a good and stable connection.
Airlines are closely evaluating this highly demanded service as part of their digital transformation efforts, and some are now using connectivity on board to drive loyalty. Air France recently announced the introduction of free ultra high-speed wi-fi onboard their flights starting in 2025. The free service is directly linked to registration with their Flying Blue loyalty program.
United Airlines also recently announced the launch of their new free wi-fi which they say will allow customers to stream movies and work on board their aircraft for free. Both these programs will be realized with satellite internet provider Starlink. These announcements are another step in raising the competitive bar of how airlines are packaging this much desired service.
Smartphone ownership has revolutionized passenger demand for personalization
The demand for connectivity on board aircraft has risen most significantly with the growth in smartphone ownership. Around 4,48 billion people own a smartphone with an annual increase of 13.8% projected to rise to 6.18 billion by 2029 meaning over 70% penetration rate. This is a trend on the rise.
Customer expectations regarding speed and quality of the internet connection have also grown as they become accustomed to high speeds at work and home. Creating this experience on board an aircraft is reliant on the available internet capacity and bandwidth, which are also the most challenging factors. Capacity demand during flights has risen dramatically. Whereas a few years ago only a few customers bought a pass to use the onboard wi-fi, now many users are trying to do high-capacity actions like streaming music or films, thus shifting the inflight entertainment (IFE) to their own device in a need for a more personalized experience.
What is technically possible on board an aircraft?
In areas with a high density of aircraft, such as near busy airports or on highly frequented routes where a growing quantity of passengers are using the wi-fi, the available satellite capacity simply cannot cover the demand. This leads to breaks in connectivity or passengers not being able to log into the wi-fi on board. The good news is that as more satellites are launched, the capacity and availability will improve, also on board aircraft.
There are a range of satellite providers which airlines can choose from such as Panasonic, Viasat and Inmarsat. The availability and capacity depend on the density of coverage and which geographical areas are covered by the satellites. As the aircraft fly from the departure airport to their destination they may pass through areas covered by different satellites. Air France and United Airlines announced that they will be using the Starlink network from SpaceX as their satellite provider. SpaceX claims that the Starlink capacity well exceeds the current legacy systems and the company also claims to be regularly launching new satellites. With increasing satellite coverage passengers can expect an improving quality of high-speed internet on board the aircraft.
How are airlines using internet connectivity to boost their loyalty programs?
Air France will be offering its new ultra-high-speed internet free of charge in all travel cabins for customers logging into their Flying Blue account from 2025. The new system will be phased in as the aircraft are retrofitted with the new Starlink technology.
Air New Zealand takes a customer experience approach providing the same service to all passengers on board. To make sure the available capacity can be enjoyed by all customers, they block video calls, video streaming and multi-player gaming. In addition, voice calls are prohibited due to aviation regulations.
Delta allows all SkyMiles members to access free internet which is now available on most domestic flights and in 2025 the airline anticipates free wi-fi being available on all international flights too. Passengers can look forward to streaming, messaging and browsing as Delta aims to provide a luxurious customer experience and position itself as a high-end alternative in the US market.
Source: Information published on the airline websites accessed in October 2024
Lufthansa links free messaging on its short and medium haul flights directly to the Miles & More program enabling passengers to sign up during the flight and access the free wi-fi option. Otherwise, Lufthansa and Qatar are using on board connectivity as a source of ancillary revenue. Qatar gives their Privilege Club members an hour free of charge but interestingly are focusing on Gen Z and their future market by granting their Student Club members unlimited high-speed access on board for free.
Turkish Airlines takes a staggered approach to the volume of internet access they grant for free. The higher the loyalty status, the greater the benefit as regards internet speed and volume.
Looking to the future
In the competitive aviation market where airlines are trying to position themselves to attract and retain customers, the quality of inflight connectivity is a significant factor for airlines to differentiate their on-board product. Building preferences by offering what customers perceive as a valuable service for free and connecting the offers with registration to an airline loyalty program seems to be a promising way to boost a loyal customer base. The cost factors for introducing wi-fi, changing systems and retrofitting the aircraft, including the aircraft ground time required, need to be weighed against the benefits. The demand for on-board connectivity is already there and the digital trend is evolving continuously. The first airlines have made their move enabled by satellite density on a new scale which should vastly improve the online experience for passengers on board.
Author:
Janice Baker is a Consultant in the Solution Group Customer Experience at Lufthansa Consulting.
Janice Baker
Further insights from Lufthansa Consulting’s aviation experts are available at https://www.lhconsulting.com