Nigel Pickford, SITA, Passenger IT Trends Survey 2013


Published on

Nigel Pickford, SITA, presents Passengers IT Trends Survey 2013 at Europe Aviation ICT Forum 2013 in Vienna

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Passengers are POSITIVE….about technologyTalking points: Passenger generally like technology….and would like more options Using websites and kiosks to perform self-service at various stages of the passengers journey has become second nature to most passengers. It is well established and most passengers see it as an essential part of travelling adding convenience and speed to the journey. Mobile service has not yet taken off in all areas of the passengers journey in the same way.For example: ….mobile boarding passes, check-in, flight status are just reaching mainstream with more than 50% considering this a definitive improvement…while the other 50% still consider it a good additional option, but not their first. One of the reasons could be that kiosk and web are performing these tasks WELL already and that mobile options are a good alternative but many passengers don’t see a reason to change their current habits permanently. …this kind of behaviour changes will take time…EXAMPLE: web booking or online check-in has not happened overnight also. LINK: I think we should expect a lot of movement in this in the next few years….similar to the speed of change that we saw in the last few years, perhaps.
  • POSITIVE….about technologyTalking points: Smart phone penetration among the travelling population has exploded in recent years, at the same time airlines are investing in mobile apps making it available to most passengers. 1) Smart phone penetration Google reports a global smart phone penetration of just around 40% in 2013 but above 50% in some markets such as the US. Smart phone penetration among travellers remains much higher than penetration among the global population. 76% of the passenger interviewed in our survey carried a smart phone….2) Investing in mobile apps From the Airline Survey we know that the majority of airlines now provide mobile services to their passengers. 6 out of 10 have mobile check-in or mobile booking, while 5 out of 10 provide flight info. Today, most of the airlines offering mobile services are larger carriers, which means that a significant proportion of passengers have access to mobile services through their airline. We also know that almost all airlines are investing in mobile services for their passengers, an are expecting a ramp up of functionality further in the next 3 years. Check-in, ticket booking, flight info are expected to be available from 9 out of 10 of airlines by 2016.LINK/Conclusion:  Judging by the progress made already, mobile is getting ready for mainstream adoption!  it may change the picture we saw earlier completely in a few years time.
  • BRING it back down…passenger mobile cautionTalking points: However, there is some caution among hype: ( we asked the question: what functionality would you DEFINITLY use!) The majority of passenger would use at least one of the mobile options if available BUT they also have clear priorities what functionality is important to them. Last year we looked at this and receiving information on a mobile related to travelling was top priority. In 2013, Information still the key priority for passenger (baggage status info, flight status, direction at ..) However, for other services the interest is lower. For example: Check-in only 36% would definitely use it. Mobile commerce: although flight search is something passenger want to do; most passengers switch back to websites to purchase. Only 37% of passengers would definitely buy tickets on a mobile phone today. What would be interesting is to explore if what the passengers see as priorities matches with what you see as your own organisations priorities implementing services. At the same time if we look at the current usage today: although global usage is increasing, It is at single digits: for example: under 5% using mobile to buy tickets or check-in Why is this? We know now that the most passengers travel with smart phones (previous), and most major airlines provide this functionality to them. So what is holding things back. What I am not show on the graph is that there are so many passengers that are still undecided. While those shown, have made up their mind and would definitely use mobile. …20-30% of passengers sit on the fence, they have told us that they only “maybe using mobile in travel. What needs to happen to change their mind? The next slide hopefully give some insight into this question
  • Key points: overwhelming majority of users cite usage concerns as the reason for not using mobile for travelTalking points: Obviously there are cases that mobile isn’t used because they need or prefer to speak to someone…. HOWEVER, the vast majority (78%) of passengers don’t use a mobile phone because of usability concerns. Out of the 78%, the largest part (31%) fear that the phone, with all the information needed to take the flight, will suddenly stop working. Others felt (27%) that either the app itself or the travel arrangements were too complicated to handle by an app. 18% of the passenger suggested that the mobile does not offer any advantage over other options available to do the same task. mainly because many apps today copy the functionality of their website, which offers no big advantage over the PC. Most apps today do not take advantage of the opportunity offered by mobile to enhance the user experience beyond the web experience. It does not offer a deep integration with the mobile such as taking advantage of calendar integration, alert functionality, map integration etc.
  • Observations: Although many passengers use mobile/tablets to search for flights, to book a flight passengers rather go back to the website to make the booking. Mobile and Tablets are currently seen as RESEARCH tools first: 88% of passenger would SEARCH on mobiles but prefer to purchase via a website. The website is the most preferred channel to purchase tickets. Truly established. Interestingly….in terms of preference it has taken over from the traditional way to purchase airline tickets, 96% of respondents would use a website compared to 66% who would use a physical shop to buy airline tickets. Although the website is the preferred channel to purchase tickets, 70% of passengers would buy tickets via a mobile phone if available. Mobile as a channel for buying tickets is becoming increasingly popular, in 2012 63% suggested they would buy via a mobile while it is now 70%. This shows that the mobile is increasingly accepted as a device to make purchases (ADD something about prediction for m-commerce – changing consumer behaviour/acceptance generally) despite the restrictions of real estate (screen). Still it is easier to compare airline tickets and fares on a computer website, but acceptance is increasing.
  • Observation: Looking at m-commerce more closely, it seems that passengers are more interest in making changes to the booking (47%), or purchasing ancillary services (39%) on a mobile than the initial ticket purchase only 37% The numbers show that passengers can see the benefits of having instant access to RELEVANT services while travelling. i.e. changes to the booking (47%), or purchasing ancillary services (39%) on a mobile Extending the relationship with the passenger beyond the initial ticket purchase opens a significant revenue opportunity for airlines….enabling them to offer services to their passengers whenever and wherever it is needed. Counting those passengers that are still undecided (maybe’s) - More people (¾) would consider making changes to their booking on their mobile, after the initial ticket has been purchased Extending the relationship with the passenger beyond the initial ticket purchase opens a significant revenue opportunity for airlines….enabling them to offer services to their passengers whenever and wherever it is needed.  BUT let me bring in the results of our sister survey the Airline IT Trends survey again. From that we know that this is an area that is today NOT well developedNOT many airlines sell ancillary services on passengers mobile today. But it seems it is an area the passengers see a greater interest. CONCLUSION"Maybe for a while the web remains in the number one spot to complete the purchase, BUT Selling services on the go is the area the mobile can excel…..offering services en-route, when they are relevant and needed is an area that travel companies should focus on now.
  • Talking points: Mobile for boarding passes IS NOT THE PASSENGERS FIRST CHOICE the kiosk printers remain the most popular option for boarding passes with 82% who would use it while only 66% would use a mobile boarding pass. 92% of passenger would use website to check-in vs. only 65% who use mobileFor check-in the contract is stark: Only half of the passengers would definitely use the mobile compared to the website. There is a stream of early adopters that prefer mobile check-in and boarding, the INTEREST increases especially for younger travellers or frequently flyers However, for the majority the mobile is not the passengers PREFERED choice when it comes to check-in and boarding. Despite the increase in usage over the years The stats seem to suggest that TODAY mobile check-in/boardingmaybe used as a “emergency” option. Passengers might not see it as the mainstream way to perform this task, but a nice to have, in case its needed. again usability may be one reason for this, but of course much of this will also be related to the same reason that holds back the adoption of other self-service options. Passengers see no reason to adopt any self-service method if they need to go to the counter anyway to check in their bag. The industry is looking to resolve this by making bag-tag printing self-service and provide automatic bag-drop counters which would remove the need for counter check-in altogether.Note: For automated check-in passengers have to enter their mobile phone number during booking process. Passengers will receive check-in confirmation and link to boarding pass on their mobile phone. Check-in as we know it might be a thing of the past in the future, opening the doors even wider to move other travel steps to mobile.
  • Observations: It is only to be expected that if passengers are not rushing to switch their paper boarding passes to mobile boarding passes, that they are reluctant keeping even more sensitive information such as bank details or passport information on their smart phone. Only 32% would use a e-passport while only 30% would use the smart phone to pay for servicesAgain the resistance may only be based on the technical concerns We talked about one of the reasons already: the passengers fear to lose important information if the mobile stops working. That will certainly be true for more sensitive information such as your e-passport or your using your phone for payments There is certainly a lot going on in these areas, and services are far from mainstreamBUT it is also an area to watch. Many players are trying to make a mark her. Especially in mobile payments.
  • Key observations As we saw earlier, to stay informed while on the move is paramount for passengers….It is something they want to receive on a mobile phone. The survey shows that most people prefer receiving SMS messages over other methods such as website or airline apps. 32% regularly receive flight status updates via SMS message. Still, 27% of passenger still use a websites to get flight information…it seems passenger use both methods interchangeably. It is a bit of a surprise that airline apps are the least used option. Many airlines or airports now provide flight status updates via their app…however it is not used as much as other options. Maybe again the reason is usability….SMS is pushed to the passengers when an update is available, for many airline apps today its not integrated with the phones alerts/messaging system.
  • Key Message: Passengers want to stay connect with focus on infotainmentTalking points: Priority one: Entertainment Priority two: stay connected to the outside world THREE: shopping/purchasing Again flight information features highly for the passenger even during the flight. But a clear priority is “entertainment” and to stay connected while inflight to make the best use out of the “down time” most 85% want to use tablets or phones to access games or movies Access to email also remains a high priority. Again as, we have seen before, m-commerce remains a low priority for passengers, be it to order meals, to receive promotions, or to purchase onboard duty free.
  • YESPassengers feel positive about technology in travel Staying informed is the top priority for passengers today but there is a interest in mobile services across the whole passenger journeyMany passengers would definitely use mobile services, increasing to around 3 out of 4 passengers if concerns are addressed BUTUsability concerns are the number one issue - if addressed a more rapid mobile adoption could be achieved
  • Nigel Pickford, SITA, Passenger IT Trends Survey 2013

    1. 1. 1 Air Transport Industry Insight Do Passengers really want to go mobile? The Passenger IT Trends Survey 2013
    2. 2. OVERVIEW Attitude towards technology & mobile Do passengers want m-commerce? Will passengers use mobile for access? Do passengers want information on the move? 2
    5. 5. STAYING INFORMED IS THE TOP PRIORITY FOR PASSENGERS Additional 20-30% “Maybe” use mobile services 5
    7. 7. OVERVIEW Attitude towards technology & mobile Do passengers want m-commerce? Will passengers use mobile for access? Do passengers want information on the move? 7
    8. 8. TRAVELLERS PREFER WEB BOOKING BUT MOBILE GAINS POPULARITY 88% 8 Of passengers would search for ticket fares on mobile apps
    10. 10. OVERVIEW Attitude towards technology & mobile Do passengers want m-commerce? Will passengers use mobile for access? Do passengers want information on the move? 10
    11. 11. MOBILE NOT THE PASSENGERS FIRST CHOICE 82% 75% 66% 92% 82% 65%
    13. 13. OVERVIEW Attitude towards technology & mobile Do passengers want m-commerce? Will passengers use mobile for access? Do passengers want information on the move? 13
    15. 15. PASSENGERS WANT TO STAY CONNECTED ON BOARD Interest in in-flight services on mobile devices 15
    16. 16. DO PASSENGERS REALLY WANT TO GO MOBILE? YES • Technology in travel is viewed positively • Many passengers would definitely use mobile services • Information is top priority but there is interest in mobile services is across the entire journey BUT • Usability, Usability, Usability 16
    17. 17. Download the Passenger IT Trends Survey 2013: For further information: e: web: or search the App Store for “SITA IT Trends Hub” 17