Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
- Market volume set to grow 19% by 2019
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- Figure 1: Volume forecast of total passengers uplifted at UK airports, 2009-19
- Market share
- UK low-cost airlines up by third since 2008
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- Figure 2: Passengers uplifted worldwide by UK airlines, low-cost* and full-service**, 2008-13
- Market factors
- Jet fuel costs projected to rise after slight declines
- More airlines to launch low-cost long-haul flights
- Inmarsat aims to bring affordable in-flight Wi-Fi to Europe
- 2014 airline disasters to impact industry
- Changes to be made to APD
- Companies, brands and innovation
- Top UK airlines continue to increase passenger uplift
- Budget airlines boost market share
- Flybe launches new domestic service
- Panasonic Avionics generates revenue through targeted ads
- BA creates interactive campaign
- United Airlines launches personal device entertainment system
- The consumer
- Almost half of people have taken a holiday flight in the last year
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- Figure 3: Purpose of flights taken in the past 12 months, May 2014
- Half of fliers have taken a budget flight in last 12 months
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- Figure 4: Types of flights taken in the last 12 months, May 2014
- Over a third booked directly through airline website
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- Figure 5: Booking method, May 2014
- More than a third always check preferred airline website
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- Figure 6: Attitudes towards purchasing, May 2014
- In-flight food still prioritised
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- Figure 7: Willingness to pay for in-flight features, any flight, May 2014
- Complimentary Wi-Fi is key app feature
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- Figure 8: Interest in mobile app features, May 2014
- What we think
Issues and Insights
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- Why airlines should focus on increasing app penetration
- How can airlines boost ancillary revenues?
Trend Application
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- Trend: Transumers
- Trend: Collective Intelligence
- Mintel futures: Generation Next
Market Drivers
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- Key points
- Air travel grows market share
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- Figure 9: All overseas visits by air, sea and tunnel – volume, 2008-13
- Heathrow and Gatwick boost passenger uplift
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- Figure 10: Passengers uplifted at UK airports, 2008-13
- Heathrow and Gatwick vie for expansion
- Jet fuel prices decline slightly but rise projected
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- Figure 11: Kerosene-type jet fuel monthly average spot price and US$:£ monthly average spot exchange rate, Jan 2008-May 2014
- Changes to APD reduces tax on long-haul flights
- Ancillary revenues pivotal
- Court ruling over compensation for flight delays
- Low-cost long-haul
- Regulation on in-flight technology usage eased
- Inmarsat looks to create EU-wide 4G broadband network
- 2014 airline disasters to increase costs
Who’s Innovating?
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- Key points
- Flybe introduces new hop-on hop-off service
- British Airways launches interactive campaign
- Improvements to In-flight entertainment
- Gogo implements faster Wi-Fi
- Panasonic Avionic introduces targeted in-flight ads
- New seating class from Delta
- More efficient boarding processes
Market Size and Forecast
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- Key points
- Air travel up in 2013
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- Figure 12: Passengers uplifted at UK airports, 2008-19
- Fan charts
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- Figure 13: Volume forecast of total passengers uplifted at UK airports, 2009-19
- Figure 14: Volume forecast of international passengers uplifted at UK airports, 2009-19
- Figure 15: Volume forecast of domestic passengers uplifted at UK airports, 2009-19
- Forecast methodology
Segment Performance
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- Key points
- Visits to friends and family up 5.1%
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- Figure 16: Volume of UK residents’ air trips abroad, by purpose, 2008-13
- Decline in non-scheduled flights continues
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- Figure 17: Passengers uplifted at UK airports, scheduled vs. non-scheduled flights, 2008-13
Market Share
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- Key points
- Ryanair, easyJet and BA cement their leading market positions
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- Figure 18: Top ten UK-based airlines, by passengers uplifted globally, 2008-13
- Virgin defends Little Red Service
- UK airlines continue to boost fleets
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- Figure 19: Number of active aircraft, by airline, 2012 and 2013
- UK low-cost airlines up by third since 2008
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- Figure 20: Total passengers uplifted worldwide by UK airlines, low-cost* and full-service**, 2008-13
Companies and Products
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- British Airways
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- Figure 21: Key financials British Airways Plc, 2012-13
- Virgin Atlantic
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- Figure 22: Key financials for Virgin Atlantic Airways, Ltd, 2012 and 2013
- easyJet
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- Figure 23: Key financials for easyJet plc, 2012 and 2013
- Ryanair
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- Figure 24: Key financials for Ryanair, 2013 and 2104
- Monarch
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- Figure 25: Key financials for Monarch Holding Ltd, 2012 and 2013
- Flybe
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- Figure 26: Key financials for Flybe, 2013 and 2014
Brand Communication and Promotion
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- Key points
- easyJet continues to dominate UK adspend
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- Figure 27: Top ten airlines, by UK top-line advertising spend, 2010-14
- Ryanair and British Airways boost spend in 2014
- Press remains primary channel, but TV spend up in first half of 2014
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- Figure 28: Airline UK advertising spend, by media type, 2010-14
Brand Perceptions and Social Media
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- Brand perceptions
- Key brand metrics
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- Figure 29: Key brand metrics, April 2014
- Brand map
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- Figure 30: Attitudes towards and usage of brands in the airlines sector, April 2014
- Correspondence analysis
- Brand attitudes
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- Figure 31: Attitudes, by airlines brand, April 2014
- Brand personality
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- Figure 32: Airlines brand personality – macro image, April 2014
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- Figure 33: Airlines brand personality – micro image, April 2014
- Brand usage
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- Figure 34: Airlines brand usage, April 2014
- Brand experience
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- Figure 35: Airlines brand experience, April 2014
- Social media and online buzz
- Social media metrics
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- Figure 36: Social media metrics of selected airline brands, August 2014
- British Airways has the strongest online presence
- Ryanair bypasses Facebook account and communicates with audience solely via Twitter
- easyJet stands out from its direct competitors
- Online mentions
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- Figure 37: Online mentions of selected airlines brands, 1st August 2013-31st July 2014
- British Airways dominates conversation with spikes throughout the year
- Ryanair mentions spike around coverage of Channel 4 documentary
- Virgin Atlantic’s Google Glass trial prompts discussion
- Topics of discussion
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- Figure 38: Topics of discussion around selected airlines brands, 28 July 2013-2 August 2014
- The basics of travel take precedence
- Entertainment likely to be strong part of long-haul offering
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- Figure 39: Topics of discussion around selected airline brands, by week, 28 July 2013-2 August 2014
- Price remains constant as most talked about topic
- New technology is coming, but has yet to gain traction
- Analysis by brand
- British Airways
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- Figure 40: Topic cloud around mentions of British Airways, 28 July 2013 – 2 August 2014
- What we think
- Ryanair
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- Figure 41: Topic cloud around mentions of Ryanair, 28 July 2013 – 2 August 2014
- Ryanair has strong number of online mentions
- Ryanair’s focus on price is successful to a certain extent
- However, satisfaction suggests that brand could become even more successful
- What we think
- easyJet
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- Figure 42: Topic cloud around mentions of easyJet, 28 July 2013-2 August 2014
- easyJet has fewer mentions than Ryanair
- What we think
- Virgin Atlantic
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- Figure 43: Topic cloud around mentions of Virgin Atlantic, 28 July 2013-2 August 2014
- Virgin’s performance and brand image is stronger than online performance
- What we think
- Flybe
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- Figure 44: Topic cloud around mentions of Flybe, 28 July 2013 – 2 August 2014
- Flybe trouble dominates discussion
- Flybe runs weekly #FlybeFriday competition
- What we think
- Monarch
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- Figure 45: Topic cloud around mentions of Monarch, 28 July 2013-2 August 2014
- Holidays are main point of difference for Monarch
- What we think
The Consumer – Flights Taken in the Last 12 Months
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- Key points
- Over half of people have taken a flight in last year
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- Figure 46: Purpose of flights taken in the past 12 months, May 2014
- Seven in ten ABs took a flight
The Consumer – Types of Flights Taken in the Last 12 Months
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- Key points
- Half have taken a budget flight in last 12 months
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- Figure 47: Types of flights taken in the last 12 months, May 2014
- Low-cost long-haul
The Consumer – Booking Methods
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- Key points
- Over a third of consumers booked directly with an airline website
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- Figure 48: Booking method, May 2014
- 25-34-year-olds prefer to book with an airline
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- Figure 49: Booking method, by age, May 2014
The Consumer – Attitudes towards Purchasing
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- Key points
- Three in ten consumers always use price-comparison sites
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- Figure 50: Attitudes towards purchasing, May 2014
- Booking in advance
The Consumer – Willingness to Pay for In-flight Features
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- Key points
- Six in ten would pay for an in-flight feature on flights under six hours
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- Figure 51: Willingness to pay for in-flight features, May 2014
- In-flight food still key feature
- Seating a priority
- Younger people more willing to pay for In-flight entertainment
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- Figure 52: Willingness to pay for in-flight entertainment, by age, May 2014
- Higher prices for features on shorter flights
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- Figure 53: Average amount people are willing to pay for each feature, May 2014
The Consumer – Interest in Mobile App Features
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- Key points
- Complimentary Wi-Fi most appealing airline app feature
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- Figure 54: Interest in mobile app features, May 2014
- Complimentary Wi-Fi would encourage half of 16-24-year-olds to use apps
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- Figure 55: Interest in complimentary in-flight Wi-Fi, by age, May 2014
- Speedier check-in processes
- The decline of loyalty
Appendix – Market Size and Forecast
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- Figure 56: Passengers uplifted at UK airports, 2008-19
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Appendix – Brand Perceptions and Social Media
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- Figure 57: Brand usage, April 2014
- Figure 58: Brand commitment, April 2014
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- Figure 59: Brand diversity, April 2014
- Figure 60: Brand satisfaction, April 2014
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- Figure 61: Brand recommendation, April 2014
- Figure 62: Brand attitude, April 2014
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- Figure 63: Brand image – macro image, April 2014
- Figure 64: Brand image – micro image, April 2014
- Figure 65: Share of conversation of selected airlines brands, 28 July 2013-2 August 2014
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- Figure 66: Topics of discussion around selected airlines brands, 28 July 2013-2 August 2014
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Appendix – The Consumer – Flights Taken in the Last 12 Months
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- Figure 67: Flights taken in the last 12 months, May 2014
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- Figure 68: Flights taken in the last 12 months, by demographics, May 2014
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- Figure 69: Flights taken in the last 12 months, by demographics, May 2014 (continued)
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Appendix – The Consumer – Types of Flights Taken in the Last 12 Months
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- Figure 70: Types of flight taken in the last 12 months, May 2014
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- Figure 71: Types of flight taken in the last 12 months, by flights taken in the last 12 months, May 2014
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- Figure 72: Flights taken in the last 12 months, by types of flight taken in the last 12 months – Destination, May 2014
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- Figure 73: Flights taken in the last 12 months, by types of flight taken in the last 12 months – Type of airline, May 2014
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- Figure 74: Flights taken in the last 12 months, by types of flight taken in the last 12 months – Class, May 2014
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- Figure 75: Types of flight taken in the last 12 months – Destination, by demographics, May 2014
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- Figure 76: Types of flight taken in the last 12 months – Type of airline, by demographics, May 2014
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- Figure 77: Types of flight taken in the last 12 months – Class, by demographics, May 2014
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Appendix – The Consumer – Booking Method
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- Figure 78: Booking method, May 2014
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- Figure 79: Booking method, by flights taken in the last 12 months, May 2014
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- Figure 80: Booking method, by demographics, May 2014
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- Figure 81: Booking method – With the airline, by demographics, May 2014
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- Figure 82: Booking method – With a travel/booking agent, by demographics, May 2014
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- Figure 83: Other booking method, by demographics, May 2014
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Appendix – The Consumer – Attitudes towards Purchasing
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- Figure 84: Attitudes towards purchasing, May 2014
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- Figure 85: Booking method, by attitudes towards purchasing, May 2014
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- Figure 86: Booking method, by attitudes towards purchasing May 2014, (continued)
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- Figure 87: Types of flight taken in the last 12 months, by attitudes towards purchasing, May 2014
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- Figure 88: Types of flight taken in the last 12 months, by attitudes towards purchasing, May 2014 (continued)
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- Figure 89: Attitudes towards purchasing, by demographics, May 2014
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- Figure 90: Attitudes towards purchasing, by demographics, May 2014 (continued)
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Appendix – The Consumer – Willingness to Pay for In-Flight Features
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- Figure 91: Willingness to pay for in-flight features, May 2014
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- Figure 92: Types of flight taken in the last 12 months, by willingness to pay for in-flight features – Any flight, May 2014
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- Figure 93: Types of flight taken in the last 12 months, by willingness to pay for in-flight features – Any flight, May 2014 (continued)
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- Figure 94: Types of flight taken in the last 12 months, by willingness to pay for in-flight features – Flight under six hours, May 2014
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- Figure 95: Types of flight taken in the last 12 months, by willingness to pay for in-flight features – Flight under six hours, May 2014 (continued)
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- Figure 96: Types of flight taken in the last 12 months, by willingness to pay for in-flight features – Flight over six hours, May 2014
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- Figure 97: Types of flight taken in the last 12 months, by willingness to pay for in-flight features – Flight over six hours, May 2014 (continued)
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- Figure 98: Willingness to pay for in-flight features – any flight, by demographics, May 2014
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- Figure 99: Willingness to pay for in-flight features – any flight, by demographics, May 2014 (continued)
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- Figure 100: Willingness to pay for in-flight features – flight under six hours, by demographics, May 2014
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- Figure 101: Willingness to pay for in-flight features – flight under six hours, by demographics, May 2014 (continued)
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- Figure 102: Willingness to pay for in-flight features – flight over six hours, by demographics, May 2014
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- Figure 103: Willingness to pay for in-flight features – flight over six hours, by demographics, May 2014 (continued)
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Appendix – The Consumer – Amount Willing to Pay for In-Flight Features
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- Figure 104: Amount people are willing to pay for each feature, May 2014
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- Figure 105: Amount people are willing to pay for each feature – Average, by demographics, May 2014
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- Figure 106: Amount people are willing to pay for each feature – Average, by demographics, May 2014 (continued)
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- Figure 107: Amount people are willing to pay for each feature – Flight under six hours, by demographics, May 2014
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- Figure 108: Amount people are willing to pay for each feature – Flight under six hours, by demographics, May 2014 (continued)
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- Figure 109: Amount people are willing to pay for each feature – Flight over six hours, by demographics, May 2014
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- Figure 110: Amount people are willing to pay for each feature – Flight over six hours, by demographics, May 2014 (continued)
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Appendix – The Consumer – Interest in Mobile App Features
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- Figure 111: Interest in mobile app features, May 2014
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- Figure 112: Interest in mobile app features, by flights taken in the last 12 months, May 2014
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- Figure 113: Interest in mobile app features, by types of flight taken in the last 12 months – Destination, May 2014
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- Figure 114: Interest in mobile app features, by types of flight taken in the last 12 months – Type of airline, May 2014
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- Figure 115: Interest in mobile app features, by types of flight taken in the last 12 months – Class, May 2014
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- Figure 116: Interest in mobile app features, by demographics, May 2014
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- Figure 117: Interest in mobile app features, by demographics, May 2014 (continued)
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