Understanding the Global Traveler Gogo s Study of Inflight Trends, Preferences and Behaviors
Contents INTRODUCTION Pursuing a new kind of inflight experience... 1 Methodology...2-3 01 TRAVELER PROFILE Insights... 5 Air travel and loyalty... 6 Trip purpose... 7 Destination profile... 8 Attitudes toward travel... 9 Device ownership...10 Demographics...11 02 DEMAND FOR INFLIGHT WI-FI Insights...13 Importance of factors when booking a flight...14 Attitudes toward inflight Wi-Fi...15 Interest in inflight offerings...16 Top expected inflight offerings...17 Interest in inflight entertainment...18 Inflight device usage...19 03 THE FUTURE TRAVELER Insights... 21 Profile... 22 Device ownership and usage in flight... 23 Interest of device offerings among future travelers... 24 Attitudes toward Wi-Fi... 25 Interest in entertainment on devices in flight... 26 Summary... 27
Pursuing a new kind of inflight experience At Gogo, our passion is linking the sky to the ground. So we are pleased to offer this comprehensive study of the global traveler to others who share our commitment to understanding and serving today s flyers wherever they may be. As the internet becomes part of every flight, the expectations of global travelers grow more demanding. In fact, their couch-to-cabin lifestyles increasingly require that the fast, always-available internet they enjoy at home is available in the sky, too. This Global Traveler Study is designed to give you a clear perspective on who these travelers around the world are, what their travel habits look like and, most importantly, what they expect when it comes to a connected inflight experience. This study is the centerpiece of the Gogo Global Traveler Research Series, a collection of focused reports published by Gogo throughout 2017. This study was compiled in late 2016 and covers 15 countries across six regions around the world. It incorporates data collected from more than 4,500 respondents who flew within the past 12 months of the survey. All data was collected by Lieberman Research Worldwide, a full-service custom market research consultancy that conducts research in over 80 countries. Analysis and insights are provided by Gogo research and marketing professionals. 1
Research methodology WHO Travelers who have taken at least one flight in the past 12 months Age 18 or above HOW MANY Conducted in 15 countries across six regions around the world WHAT 15-minute online survey WHEN Data collection occurred during Q4 2016 4500 respondents in total (n=300 per country) 2
Research methodology cont d Travelers from 15 countries across six regions of the world are represented in this study: Canada, United States, Brazil, Colombia, Mexico, France, Germany, Spain, United Kingdom, Turkey, United Arab Emirates, China, India, Japan, Australia 3
01Traveler profile Air travel and loyalty Trip purpose Destination profile Attitudes toward travel Device ownership Demographics
PROFILE 01TRAVELER Insights Air travel is more popular than ever. Across the globe, people are flying for business and pleasure, both domestically and internationally. They enjoy it more than other modes of transportation and most flyers perceive their time in flight as exciting and energizing. 82 % of air travelers love traveling
Traveler profile 01 Air travel and loyalty Air travel is popular and airline preferences are strong. 5.3 in Average number of individual flights taken the past year 85 % have a preferred airline 58 % have a frequent flyer membership with at least one airline 47 % only look at one or two specific airlines when booking a flight 25 % have elite status with at least one airline 6
01 Traveler profile Trip purpose Although almost all have flown for leisure purposes, one-third of flights taken is for work. HAVE TRAVELED FOR 94 % Leisure 5 % Both 33 % Business SHARE OF FLIGHTS TAKEN 44 % Business 61 % Leisure 7
Traveler profile 01 Destination profile International trips are nearly as prevalent as domestic travel. HAVE TRAVELED 72 % Domestically 69 % Internationally SHARE OF FLIGHTS TAKEN 55 % Domestic 45 % International 8
01 Traveler profile Attitudes toward travel People love to travel and most prefer flying over other modes of transportation. 82 % I love traveling 80 % I tend to use my time on the plane to relax 77 % Travel makes me excited and energized 74 % I consider myself an expert traveler 73 % I prefer to fly over other modes of transportation 9
Traveler profile 01 Device ownership All travelers own at least one personal device, with smartphones being the most popular. 100 % Any Device 90 % Smartphone 81 % Laptop 66 % Tablet SMARTPHONE Android 66 % Apple ios 28 % Windows 6 % 10
01 Traveler profile Demographics People of all ages are traveling but more than half of all travelers are under the age of 45. AGE 11 % 25 % 24 % ages 18-24 ages 25-34 ages 35-44 17 % ages 45-54 13 % ages 55-64 10 % ages 65+ GENDER 45 % 55 % Female Male 11
02Demand for inflight Wi-Fi Importance of factors when booking a flight Attitudes toward inflight Wi-Fi Interest in inflight offerings Top expected inflight offerings Interest in inflight entertainment Inflight device usage
FOR INFLIGHT WI-FI 02DEMAND Insights Although inflight Wi-Fi hasn t been available for very long, there is strong demand for this service among travelers. Many are even willing to choose an alternative to their preferred airline just to access the internet in flight. Most travelers are bringing their devices onboard, expecting to access the internet and entertainment. 57 % think Wi-Fi should be offered on more flights
Demand for inflight Wi-Fi 02 Importance of factors when booking a flight Inflight connectivity is more important to travelers than traditional entertainment options. Price 81 % Convenient schedule 77 % Comfortable seats 76 % Preferred airline 49 % Inflight meals 47 % Inflight Wi-Fi 39 % Frequent flyer miles earned 38 % In-seat power 36 % Availability of movies or TV shows on seatback screens 33 % Availability of movies or TV shows for your device 28 % Availability of games, music, podcasts, or magazines 22 % 14
02 Demand for inflight Wi-Fi Attitudes toward inflight Wi-Fi More than half of travelers think more flights should offer Wi-Fi. 57 % More flights should offer inflight Wi-Fi to meet my needs 48 % 50 % I always use inflight Wi-Fi if available when flying Inflight Wi-Fi speeds should be as fast as they are on the ground 45 % I expect inflight Wi-Fi to be faster if I pay for it 38 % I would choose another airline to have access to inflight Wi-Fi 37 % I would pay to use Wi-Fi if I could connect gate-to-gate 15
Demand for inflight Wi-Fi 02 Interest in inflight offerings Travelers express more interest in inflight Wi-Fi than any other inflight entertainment offering. Inflight Wi-Fi 62 % Seatback screens where you can watch movies/tv shows 48 % Access to in-seat power 46 % Ability to send messages using your device 43 % Live TV you can watch on a seatback screen 40 % Music you can listen to through a seatback system 34 % Ability to send SMS text messages on your phone 34 % Ability to make phone calls using your device 33 % Movies/TV shows offered by a streaming service on your device 29 % Movies/TV shows offered by the airline, streamed on your device 29 % Music you can stream and listen to on your device 27 % Live TV you can watch on your device 26 % Screens overhead that show the same movie/tv show to the whole cabin 16 % 16
02 Demand for inflight Wi-Fi Top expected inflight offerings Expectations of inflight Wi-Fi are the same, regardless of flight length. UNDER 4 HOURS OVER 4 HOURS 49 % 42 % INFLIGHT WI-FI 51 % Seatback screens with movies/tv shows 40 % Access to in-seat power 26 % Access to in-seat power Seatback screens with movies/tv shows 17
Demand for inflight Wi-Fi 02 Interest in inflight entertainment Preference for entertainment on a personal device is equal to that for seatback. DEVICE PREFERENCE 79 77 % % Personal device Seatback TOP ACTIVITIES OF INTEREST FOR PERSONAL DEVICES 1 Movies/TV from online streaming service 2 Movies/TV from airline 3 Music 4 Live TV TOP ACTIVITIES OF INTEREST FOR SEATBACK 1 Movies/TV from airline 2 Live TV 3 Music 4 Books/Magazines 18
38 % 33 % 32 % 02 Demand for inflight Wi-Fi Inflight device usage Almost all travelers who own a device bring it on the flight. BROUGHT ON LAST FLIGHT USED ON LAST FLIGHT 93 % 81 % 63 % 18 % 13 % Any device Smartphone Tablet Laptop 19
03Future traveler Future traveler profile Device ownership and usage in flight Interest of device offerings among future travelers Future traveler attitudes toward Wi-Fi Interest in entertainment on devices in flight
TRAVELER 03FUTURE Insights Today s younger travelers between the ages of 18 and 35 are setting the expectations for future air travel. As Wi-Fi becomes faster and more available on the ground, these future travelers expect a similar connectivity experience in the air. Interest in inflight Wi-Fi and using their own devices in flight is high, and they are willing to pay for these services. 92 % of future travelers are interested in using their own device inflight for Wi-Fi or entertainment Future travelers These are younger flyers (ages 18 to 35) who travel today and whose preferences will set inflight expectations for tomorrow. Current travelers Travelers who fall outside the 18 to 35 age range.
Future traveler 03 Future traveler profile The future traveler flies frequently and is more engaged with the airlines. Average individual flights taken in the past year CURRENT TRAVELERS FUTURE TRAVELERS 90 % 94 %95% 5.5 82 % Future travelers 62 % 55 % 55 % 5.1 Current travelers 35 % 38 % 20 % Has a preferred airline Has one or more frequent flyer card Has elite status with at least one airline Flown for business purposes in past year Flown for leisure purposes in past year 22
03 Future traveler Device ownership and usage in flight The future traveler is highly attached to their device in flight. CURRENT TRAVELERS OWN BROUGHT ON LAST FLIGHT USED ON LAST FLIGHT FUTURE TRAVELERS OWN BROUGHT ON LAST FLIGHT USED ON LAST FLIGHT 98 % 1OO % 1OO % 90 % 96 % 89 % 86 % 87 % 75 % 76 % 71 % 78 % 64 % 56 % 63 % 40 % 27 % 33 % 33 % 27 % 19 % 17 % 17 % 10 % Any device Smartphone Tablet Laptop 23
Future traveler 03 Interest of device offerings among future travelers Future travelers are more interested in inflight offerings on their devices and are more willing to pay for them. Travelers willing to pay for inflight offerings 42 % 23 % Future travelers Current travelers CURRENT TRAVELERS FUTURE TRAVELERS Inflight Wi-Fi 58 % 69 % Movies/TV from online streaming service 24 % 37 % Movies/TV offered by the airline 25 % 34 % Music 23 % 34 % Live TV 23 % 31 % Games 13 % 27 % Books or magazines 19 % 26 % 24
03 Future traveler Future traveler attitudes toward Wi-Fi Being connected in flight is important to the future traveler and they expect their experience to be the same as on the ground. 63 % Think more flights should offer Wi-Fi 48 % Think Wi-Fi in the air should be as fast as it is on the ground 48 % Would choose another airline if Wi-Fi was not available on their preferred 47 % Would pay for gate-to-gate Wi-Fi connectivity 25
Future traveler 03 Interest in entertainment on devices in flight Future travelers want to use their own devices in flight for both connectivity and entertainment. CONTENT PREFERENCES 92 % are interested in using their own inflight device for Wi-Fi or entertainment 48 % prefer to stream their own content on their device MULTI-SCREEN USE CURRENT TRAVELERS FUTURE TRAVELERS 46 % 50 % 40 % 33 % Use Wi-Fi AND watch a movie/tv show on their device Use Wi-Fi AND watch a movie/tv show through any medium (seatback/overhead/device) 26
Summary Inflight internet is quickly becoming an expectation rather than a luxury for travelers around the world. A full 50% of passengers say they always use Wi-Fi if available, and 38% would even choose an airline other than their preferred airline to have access to it. As airlines look closely at both their customers and their inflight offerings, it s clear that inflight connectivity will play an increasingly significant role in passenger satisfaction for the near future and beyond.
See our country & regional breakdowns North America Latin America Europe Middle East Asia Australia Looking for a country-level breakout of a specific geographic region? The Gogo Global Traveler Research Series includes additional reports focused on flyer preferences and trends in six regions around the world. These regional breakdowns will be available starting in late summer 2017.
Learn more Ready to turn traveler insights into new opportunities? Visit our website or contact the Gogo representative in your region. North America John Happ Dave Bijur Latin America Alan Mak Europe Nigel Rhodes jhapp@gogoair.com dbijur@gogoair.com amak@gogoair.com nrhodes@gogoair.com Middle East & Africa Nick Silvester nsilvester@gogoair.com Asia Pacific Alexis Girin China Duncan Deng agirin@gogoair.com hdeng@gogoair.com gogoair.com/commercial 2017 Gogo LLC. All trademarks are the property of the respective owners. 29