Market Research Logo

Airlines - UK - September 2015

Airlines - UK - September 2015

“Judging by the increase in aircraft orders over the past year, airlines are confident about the future of the market. However, they also realise that there will be some intense competition for customer acquisition in the form of price wars and customisable flight experiences. As a result, consumer data and mobile technology will play a key role in offering a stand-out service”

– Fergal McGivney, Travel and Technology Analyst

This report discusses the following key topics:

Airlines may need to beat online travel agents at their own game if they want to negate commission costs and drive direct bookings
Passenger data can be the key to delivering relevant ancillary services


OVERVIEW
What you need to know
Scope of the report
EXECUTIVE SUMMARY
Market forecast
Types of flight taken
Figure 1: Types of flight taken, July 2015
Flight destinations
Figure 2: Destination flown to, July 2015
Types of airlines flown on
Figure 3: Types of airlines flown on, July 2015
Figure 4: Classes flown, July 2015
Flight bookings
Figure 5: How last flight was booked via the airline, July 2015
Consumers open to sharing location data
Figure 6: Willingness to share data, July 2015
Hyper-sensitive data in exchange for discounts, loyalty points and tailored in-flight services
Figure 7: What services people would be willing to share data* for, July 2015
Consumers open to adverts in exchange for free entertainment services
Figure 8: Attitudes towards flight services, July 2015
What we think
ISSUES & INSIGHTS
Airlines may need to beat online travel agents at their own game if they want to negate commission costs and
drive direct bookings
Passenger data can be the key to delivering relevant ancillary services
THE MARKET
What you need to know
Passenger uplift finally exceeds the pre-recession period
Passenger uplift on track for growth in 2015 as Q1 sees growth
easyJet outperforms British Airways and Ryanair
Aircraft orders up
Strong competition from budget airlines affecting full-service offerings
Charter airlines lose out on their share of package bookings
Fuel prices drop but hedging curbs the benefit
Competition heightens among trains and planes to the Continent
Market size and forecast
2015 set for strong growth
Growth expected over the next five years
Figure 9: Passengers uplifted at UK airports, 2010-20
Figure 10: Volume forecast of total passengers uplifted at UK airports, 2010-20
Figure 11: Volume forecast of international passengers uplifted at UK airports, 2010-20
Figure 12: Volume forecast of domestic passengers uplifted at UK airports, 2010-20
Segment performance
Packages grow market share
Figure 13: Independent versus non-independent air travel bookings, 2010-14
Figure 14: Passengers uplifted at UK airports, scheduled versus non-scheduled, 2010-14
Low-cost carriers outpace full-service airlines
Figure 15: Total passengers uplifted worldwide by UK airlines, low-cost* and full-service**, 2010-14
Holiday trips grow as business travel remains flat
Figure 16: Volume of UK residents’ air trips abroad, by purpose, 2010-14
Market drivers
Air travel growth contrasts with declining sea and tunnel trips
Figure 17: Overseas visits by air, sea and tunnel, by volume, 2010-14
Airline punctuality drops across the UK
Eurostar to grow market share?
Heathrow dominates passenger uplifts
Figure 18: Passengers uplifted at UK airports, by airport, 2010-14
Decision on Heathrow’s third runway set for autumn
Jet fuel drops as oil prices remain low
Figure 19: Jet fuel prices, Pound Sterling per gallon, July 2010-July 2015
UK to scrap air passenger duty?
Consumer confidence up on back of improved jobs and pay data
Figure 20: Consumer confidence index, October 2014-July 2015
Beacon technology to enhance service
High UK rail fares could benefit domestic flights
Figure 21: UK rail fares index, 2004-15
UK-based budget carrier to finally offer consumers transatlantic service?
Lufthansa imposes a €16 fee on online travel agent bookings
Costly move to eschew the GDS or ancillary revenue generator?
KEY PLAYERS
What you need to know
Innovations helping with efficiency
Passenger growth for easyJet and BA outstrips Ryanair’s
Airlines increase aircraft orders
BA and Virgin stand above other brands
easyJet and Ryanair are the most used brands
Flybe and Monarch suffer from weak overall image
Launch activity and innovation
Solar-powered planes
Boeing says folding wing tip is in development for its upcoming 777X
easyJet pioneering drones to curb delays
KLM to provide tailored responses to customers’ questions online
Soarigami seeks to end armrest battles
Airlines offer iPads to passengers
Air New Zealand allows parents to track unaccompanied minors
Market share
Passenger growth for easyJet and BA outstrips Ryanair’s
Figure 22: Top 10 UK-based airlines, by passengers uplifted globally, 2010-14
Airlines increase aircraft orders
Figure 23: Number of active aircraft, by airline, 2012-15
Brand research
Brand map
Figure 24: Attitudes towards and usage of selected airline brands, June 2015
Key brand metrics
Figure 25: Key metrics for selected airline brands, June 2015
Figure 26: Attitudes, by airline brand, June 2015
Figure 27: Brand personality – Macro image, June 2015
Figure 28: Brand personality – Micro image, June 2015
Brand analysis
Figure 29: User profile of Virgin Atlantic, June 2015
Figure 30: User profile of British Airways, June 2015
Figure 31: User profile of easyJet, June 2015
Figure 32: User profile of Flybe, June 2015
Figure 33: User profile of Monarch, June 2015
Figure 34: User profile of Ryanair, June 2015
THE CONSUMER
What you need to know
Business market to remain flat…
…but business travellers still present opportunities
Airlines should focus their attention on tech-savvy consumers
Europe is a key battleground
A market for more domestic flights
Budget carriers entering the long-haul market?
Drive to increase direct bookings sees the introduction of fees by Lufthansa
Most consumers are direct bookers
Passengers open to sharing location data
Hyper-sensitive data in exchange for discounts, loyalty points towards free services and tailored in-flight
services
Types of flight taken
Half of consumers have flown in the past year
Millennials and men are most likely to fly
Londoners seeking an escape
Tech-savvy flyers key influencers in the adoption of new technology services
Figure 35: Types of flight taken, July 2015
Flight destinations
Europe is a key battleground
Londoners most likely to fly long-haul
Domestic flyers predominantly male
Figure 36: Destination flown to, July 2015
Types of airlines flown with
More than half have flown with a budget carrier in the past year
Charter flights’ popularity waning
Budget services appealing even to the financially well off
Private market
Figure 37: Types of airlines flown on, July 2015
Consumers want to economise on flights
Figure 38: Classes flown, July 2015
Flight bookings
Airlines looking to boost direct bookings share further
Figure 39: How last flight was booked, July 2015
Flight bookings via airlines
Most book via the airline’s website
Facilitating spontaneous bookings
Fewer clicks is best for websites
Partnering with venues can increase app engagement
Figure 40: How last flight was booked via the airline, July 2015
Flight bookings via travel agents
Package holidays main reason flight was booked via travel agent
Can airlines increase direct bookings by beating OTAs at their own game?
Figure 41: How last flight was booked via the travel agent, July 2015
Data sharing attitudes
Consumers most keen to share basic personal data
What is the most valuable data for airlines?
Figure 42: Willingness to share data, overview, July 2015
Hyper-sensitive data in exchange for discounts, loyalty points towards free services and tailored in-flight
services
Social media’s role
Figure 43: Willingness to share data, detailed breakdown, July 2015
Services that will entice users to share valuable data
Figure 44: What services people would be willing to share data* for, July 2015
Attitudes towards flight services
Consumers open to adverts in exchange for free entertainment services
Luggage tracker popular among young women
Demand for pre-order services via mobile app
Figure 45: Attitudes towards flight services, July 2015
CHAID analysis – Attitudes towards flight services
Methodology
Figure 46: Target groups based on attitudes towards airlines – CHAID – Tree output, July 2015
Figure 47: Target groups based on attitudes towards airlines – CHAID – Table output, July 2015
APPENDIX
Data sources, abbreviations and supporting information
Data sources
Abbreviations
Definitions
RESEARCH METHODOLOGY
UK Research Methodology
Sampling and weighting
Face to Face Surveys
Definitions
Brand & Social Media Research
Trade research
Desk research
Statistical Forecasting
The Mintel fan chart

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report