In 2003, Lufthansa became the first commercial airline to offer its passengers access to internet connectivity during a flight. Passengers traveling from Munich to Los Angeles paid $30 to access a very slow and unstable Wi-Fi service. Despite its limitations, the mere ability to access any degree of connectivity at 35,000 feet was met with enthusiasm and excitement.
Much has evolved in the more than 20 years since that maiden Wi-Fi voyage, both in terms of passenger expectations and the satellite technology that powers today’s inflight connectivity (IFC) solutions.
Today, business and leisure airline passengers alike expect to have high-performing internet access in the sky. Recent surveys reveal that large percentages of the traveling public not only see connectivity as a necessity, but they expect and demand the same experiences as they have at home or work, with the ability to stream, game, and communicate. Along popular routes where consumer choice is plentiful, flyers are increasingly choosing carriers that can meet these expectations.
Over the years, some airlines have been slower to introduce Wi-Fi or upgrade as connectivity technologies have improved, mindful of the costs to outfit their fleets with antennas, modems, and all the necessary equipment. Carriers that continue to view inflight connectivity primarily as a cost center risk missing opportunities to generate new revenues at a time when margins in commercial aviation are as slim as ever.
Advancements in satellite-powered connectivity IFC solutions that leverage the inherent strengths of multiple satellite orbits have driven improvements in speed, reliability, and coverage. In addition to simply charging for Wi-Fi access, airlines can now monetize investments in IFC technologies and improve overall passenger experiences in new and creative ways:
- Boosting Loyalty Enrollment and Rewarding High Value Customers
- Loyalty programs are of critical importance to airlines, driving customer retention in a fiercely competitive industry. Airlines are constantly exploring ways to increase member numbers by extending special offers and exclusive benefits, like priority boarding, free checked bags, or access to airport lounges. Offering free access to premium in-flight Wi-Fi is another carrot that can be used to enlist new members and reward existing customers. Airlines can also use the lure of free premium Wi-Fi to collect valuable customer data that, with their consent, can be leveraged for future marketing and engagement purposes.
- A Premium Advertising Channel for Brands
- To advertisers, passengers are a captive and engaged audience and prime targets for marketing messages while in the air. Airlines with high-performing connectivity can offer brands a channel through which they can engage target consumers with dynamic, innovative, and personalized advertising campaigns. From video ads that run before or during entertainment programming to sponsorship space on the portal or login page to highly targeted campaigns, premium connectivity opens the door for airlines to form new partnerships with brand advertisers and unlock incremental revenues.
- Transforming the Seatback Screen into a Storefront
- With robust inflight connectivity, airlines can introduce or expand e-commerce activity in the cabin, including offering real-time shopping, personalized offers, or discounts for booking flights. Connectivity makes it easier for passengers to pay for food anytime during the flight, not just when the carts are rolling down the aisles, and purchase products like headphones, blankets, digital services, and more, all of which can help airlines offset costs and increase revenue per passenger.
- Improved Operational Efficiency
- In addition to dramatically improving passenger experience in the cabin, premium inflight connectivity can also deliver significant operational advantages, allowing airlines to improve efficiency and reduce costs. Access to detailed weather data in real time can help pilots optimize fuel consumption and reroute to avoid turbulence that can cause injuries and, with increased frequency, lead to emergency landings. Airlines can also leverage connected predictive and preventative maintenance applications to capture aircraft performance data and preemptively address issues, accelerating turnaround times and keeping planes in service.
- Enhancing Passenger Care
- Finally, inflight connectivity allows airlines to better engage directly with their customer and ensure that they are being cared for at all times, such as sharing useful information related to connecting flights or baggage tracking while en route to the destination.
All airlines are alike in their desire to earn passenger loyalty and trust. However, each also has its own distinct business models, unique cohorts of target customers, and varying levels of digital experience and technical acumen.
For this reason, inflight connectivity strategies should not be viewed as a one-size-fits-all proposition.
While IFC can help any airline deliver a consistently elevated passenger experience, those that partner with satellite providers offering tailored, scalable, and flexible solutions designed specifically to meet each carrier’s unique needs will be better primed to accelerate revenue growth from IFC investments.
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