Airline passengers are among the greatest consumers in the world. They are focused shoppers with a strong appetite to purchase. Business travelers are time-starved and anxious to make the most of their downtime in a new destination. Leisure travelers are in the mindset of personal indulgence and self-reward. Both segments are the cream of the crop of consumers with above-average household incomes, educated and discerning and already engaged in in-flight magazines, catalogue shopping and other forms of entertainment.
Research by Albitron reveals strong evidence that inside the typical airline passenger there is an “alpha consumer” anxious to get out:
- Frequent Flyers are three times more likely to live in $100,000+ households;
- The majority (58%) are high income males and the majority of those (61%) are in the 25-54 age bracket with the highest income;
- Leisure travelers more likely to be brand loyal with 70% belonging to loyalty programs.
Surveys of nearly 3,500 travelers worldwide undertaken by Cossette Communications and IPSOS SA on behalf of GuestLogix have also revealed that nearly 60% of travelers would buy destination-related products and services if the onboard purchase experience was convenient and made good use of their time.
Airline ancillary revenues reached US $10.2 billion in 2008 but the average purchase per passenger onboard was only a very modest US $1.83 based on 2.4 billion passengers carried. (Source: GuestLogix Research and ATI). According to the Centre for Asia Pacific Aviation ancillary revenues are expected to expand to US $58 billion in 2010. Onboard retailing could represent 10% of this growth. GuestLogix believes the current
average onboard passenger spend will grow five-fold over the next few years. |
