Understanding price perception in the airline industry is essential given the large differences between propositions. However, perception of consumers does not reflect actual price positioning. This and other insights are derived from recent EY-Parthenon consumer research across 6 countries and multiple travel & leisure categories The following slides contain just a snap shot of the results. Learn more? Please reach out to EY-Parthenon, wouter.vincken@parthenon.ey.com

1. EY-Parthenon | Page 1
Comparison websites are commonly used, especially among younger
people. Still, the website of the airline is most frequently used as
source of information
Even though low-cost airlines are perceived significantly cheaper than
traditional airlines, actual price difference are in fact limited
The price premium associated with carriers differs per country, and is
generally highest in the home country
Price perception plays an important role for airlines given the spread in positioning of
airlines, and especially the transformation of information gathering and booking
Flight habits vary significantly for people from different age groups as
well as countries
Key takeaways airline industry w.r.t. price perception

2. EY-Parthenon | Page 2
Average flights per person show strong differences, driven by participation,
frequency and demographics; with the Netherlands scoring relatively low
0.85
1.02
1.67
1.00
0.87
0.85
Market volume of flights per year for the population of 18 – 65 years by country1,2
Source: Consumer survey; EY-Parthenon analysis
1. Based on the following question: Have you travelled by plane in the last 3 years (either private or for business)?
2. Based on the following question: How often did you travel somewhere by plane in the past 3 years?
13%
16%
17%
21%
32%
45-54 years
18-24 years
25-34 years
>55 years
34-44 years
Average number of flights per year
# of flights
Flight distribution by age category
%
Result of absolute population
and both participation as well
as flight frequency per person

3. EY-Parthenon | Page 3
Younger people use more sources of information to book a ticket, with more
focus on online as well as comparison platforms compared to older people
18 – 24 years 35 – 44 years >55 years
Search Engine (e.g. Google)
Online comparison website or
travel agent (e.g. Expedia,
Skyscanner)
Website airline
Travel agent office or by
phone
68%
54%
56%
19%
28%
49%
54%
18%
18%
35%
39%
21%
1
1 1
Source: Consumer survey; EY-Parthenon analysis
1. Based on the following question: Which sources have you used to find your flights?
Average # of
sources used
2.2 1.7 1.5
Search for information by age with respect to an airline ticket1, Dutch consumers
% of respondents by age bracket, multiple responses possible

4. EY-Parthenon | Page 4
-40%
-20%
0%
20%
40%
60%
-40% -20% 0% 20% 40%
Air France
Norwegian
Lufthansa
KLM
Brussels Airlines
Alitalia
Iberia
British Airways
SAS
Swiss Airlines
Austrian Airlines
Turkish Airlines
Polish Airlines
EasyJet
Ryanair
Transavia
Vueling
Eurowings
Flybe
Even though low-cost airlines are perceived significantly cheaper than
traditional airlines, actual price differences are often limited
Price perception
Deviation from average perception in %2,3
Realprice
Deviationfromaveragepricein%
Source: Consumer survey; Desk research; EY-Parthenon analysis
1. Departure from survey country’s main airport; respondents were either asked for a return trip to London or Barcelona
2. N ~= 100 per airline carrier per country
3. “What do you think a continental economy class return flight with check-in luggage would cost with the following airlines?”
± 5%
Continental flightsPrice perception vs. actual price by airline, average of survey countries1
% deviation from average
Traditional carrier
Low-cost

5. EY-Parthenon | Page 5
Traditional carriers are perceived as more premium in their home countries,
whereas low-cost carriers are perceived as cheap irrespective of country
23%
22%
30%
17%
-12%
-21%
-19%
12%
9%
10%
12%
-8%
-23%
-14%
Eurowings
EasyJet
Lufthansa
KLM
British Airways
Air France
Transavia
Home market
Other
Traditional
carriers
Low-cost
carriers
Price perception
Deviation from average perception1,2,3
More expensiveCheaper
Source: Consumer survey; Desk research; EY-Parthenon analysis
1. Departure from Amsterdam; respondents were either asked for a return trip to London or Barcelona
2. N ~= 100 per airline carrier per country
3. “What do you think a continental economy class return flight with check-in luggage would cost with the following airlines?”
Consumers in a carrier’s
home country perceive a
much stronger price
premium
Continental flightsPrice perception of airline carriers in home market versus other countries
% deviation from average

6. EY-Parthenon | Page 6
EY-Parthenon has ample experience with managing price perception, it is key to
understand the influencers of price perception
Price perception – influencing factors
Influencers on price perception
Importance of levers
to leisure market
Price Architecture
► Price point development over time
► Pricing differences for contract length
► Range architecture (good – better – best)
► …
Actual Prices
► Key Value Items (and Categories)
► Difference with competitor prices
► Price point policies (e.g. psychological prices)
► …
Promotions
► Discounts and multi-buy incentives
► Temporary offer (op=op)
► Loyalty rewards
► …
Communication
► Out-of-home advertising
► Phrasing of price or product offering (e.g. always low)
► Digital signage of prices
► …
Shopping Experience
► Total basket value
► Customer services / website look and feel
► Product presentation
► …
…. … …
Unimportant lever in leisure market Important lever in leisure market
Source: EY-Parthenon experience

7. EY-Parthenon | Page 7
EY-Parthenon has performed this study into a variety of leisure categories in multiple
W-European countries to assess both price perception and other travel/leisure habits
Additional data gathered:
► Travel frequency (also by leisure
/ business
► Booking journey
► General demographics, such as
age, gender and household
income
Consumer country of origin
TTLsub-segment
Airlines
For every of these [TTL players you know], what do you
think the price is for a specified activity?
Hotels
Holiday parks
Cruise operators
Tour operators
Car rental
Casual dining
(only UK)
Sample size (N) ~800 ~800 ~800 ~800 ~800 ~800
Scope of consumer survey

8. Contacts
www.parthenon.ey.com
Bram Kuijpers
+31 621238 008
bram.kuijpers@parthenon.ey.com
Rotterdam
Wouter Vincken
+31 621238 014
wouter.vincken@parthenon.ey.com
Rotterdam

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