Table of Contents
Overview
-
- What you need to know
- Scope of the Report
Executive Summary
-
- The market
- International passenger uplift
- Domestic traveller uplift
-
- Figure 1: International passenger numbers uplifted from UK airports, 2012-22
- Figure 2: Domestic passenger numbers uplifted from UK airports, 2012-22
-
- Figure 3: Total passenger numbers uplifted from UK airports, 2012-22
- The consumer
- No change in the proportion of consumers taking flights
-
- Figure 4: Flight types taken, June 2016 and June 2017
- The battle between low-cost carriers and full-service carriers
-
- Figure 5: Airline types flown in the last 12 months, June 2016 and June 2017
- Premium economy offers a more affordable alternative to business class
-
- Figure 6: Classes flown, June 2017
- Paying for ancillaries; nearly a quarter of long-haul passengers have paid for extras
-
- Figure 7: Passengers who paid for extra services on a short-haul flight, July 2017
-
- Figure 8: Attitudes towards paying for extra comfort on a long-haul flight, July 2017
- Scope for easy-to-use rewards scheme
-
- Figure 9: Attitudes towards flight services I, June 2017
- Smart technology for dealing with delays and cancellations
-
- Figure 10: Attitudes towards flight services II, June 2017
- Hassle of claiming for compensation opens up doors for tech companies that automate the process
-
- Figure 11: Attitudes towards flights, July 2017
- What we think
Issues and Insights
-
- The battle between low-cost carriers and full-service carriers
- The facts
- The implications
- Full-service carriers still dominate long-haul markets but low-cost carriers are gaining a foothold
- The facts
- The implications
- Google Flights usage is still small, but industry players voice concern
- The facts
- The implications
- Opportunities in the VFR (visits to friends and relatives) market
- The facts
- The implications
The Market – What You Need to Know
-
- Passenger forecast to slow over the next few years
- Brexit – Bumpy ride ahead for UK airlines?
- Owners of Dublin-based Ryanair could face problems
- Uncertain time for IAG
Market Size and Forecast
-
- Passenger growth forecast to slow over the next few years
- International passenger uplift
- Domestic passenger uplift
- Heathrow expansion gets the green light but plans have been scaled back
-
- Figure 12: Passenger numbers uplifted at UK airports, 2012-22
- Figure 13: International passenger numbers uplifted at UK airports, 2012-22
- Figure 14: Domestic passenger numbers uplifted from UK airports, 2012-22
-
- Figure 15: Total passenger numbers uplifted at UK airports, 2012-22
- Forecast methodology
Market Segmentation
-
- Transport; air travel increases its market share
-
- Figure 16: Overseas trips taken by UK residents, by mode of transport, 2014-16
- Holiday flights account for two thirds of overseas trips, but VFR presents opportunities
-
- Figure 17: Purpose of overseas trips, by air, 2015 vs 2016
- A third of flights are taken between July and September
-
- Figure 18: Number of trips by air, by quarter, 2015 vs 2016
- Spain the top destination for passengers by some margin
-
- Figure 19: Top 10 countries visited by UK residents, by air travel, 2015 vs 2016
- Figure 20: Top 10 countries visited by UK residents, by all modes of transport, 2015 vs 2017
- North African and Turkish markets suffering; but expansion suggests an improvement
Market Drivers
-
- The weak Pound – Positives for exports, negatives for holidaymakers
-
- Figure 21: Pound Sterling versus euro and US Dollar, January 2016-August 2017
- Low oil prices have benefited airlines but a rise may be on the cards
-
- Figure 22: Europe Brent Spot Price FOB* (Dollars per Barrel), J 2014-May 2017
- British Airways to impose GDS fees and to focus on NDC
- Ryanair promises lower fares for consumers
Brexit and the Airline Industry
-
- A bumpy ride ahead for UK airlines?
- Airlines could face problems over ownership
- Overseas segment – Denied Boarding Regulation could be called into question
Companies and Brands – What You Need to Know
-
- Traxo collects and updates travel data in real time
- Start-up Volantio can help with the overbooking problem
- Top three airlines see growth in passenger uplift
- British Airways’ reputation takes a hit following the scaling back of onboard services
Launch Activity and Innovation
-
- Traxo collects and updates travel data in real time
- Lufthansa flight information is now searchable via Google Home
- Start-up Volantio can help with the overbooking problem
-
- Figure 23: Compensation for overbooked flights, July 2017
- KLM Royal Dutch Airlines allows users to query with emoji
- One-click payments can help boost chatbots…
Brand Research
-
- Brands covered
- Full-service airlines
- British Airways
- Virgin Atlantic
- Charter airlines
- Thomson Airways
- Thomas Cook
- Low-cost carriers
- easyJet
- Ryanair
- Brand map
-
- Figure 24: Attitudes towards and usage of selected brands, July 2017
- Key brand metrics
-
- Figure 25: Key metrics for selected brands, July 2017
- British Airways and Virgin Atlantic brands associated with high quality
-
- Figure 26: Attitudes, by brand, July 2017
- Brand personality: Low-cost carrier easyJet seen as most accessible brand, while Ryanair viewed in a negative light
-
- Figure 27: Brand personality – Macro image, July 2017
- Thomson Airways and Thomas Cook’s family-friendly services viewed as welcoming and friendly
-
- Figure 28: Brand personality – Micro image, July 2017
- Brand analysis
- British Airways’ reputation takes a hit following the scale back of onboard services
-
- Figure 29: User profile of British Airways, July 2017
- Virgin Atlantic positioned to win disgruntled British Airways customers over
-
- Figure 30: User profile of Virgin Atlantic, July 2017
- Users of Thomson Airways most likely to recommend it to friends
-
- Figure 31: User profile of Thomson Airways, July 2017
- Thomas Cook viewed as safe, fun and vibrant
-
- Figure 32: User profile of Thomas Cook Airlines, July 2017
- easyJet remains the most popular budget carrier
-
- Figure 33: User profile of easyJet, July 2017
- Ryanair’s negative reputation does nothing to dampen its passenger uplift
-
- Figure 34: User profile of Ryanair, July 2017
Market Share
-
- Top three airlines see growth in passenger uplift
-
- Figure 35: Top 10 UK-based airlines, by passenger numbers uplifted globally, 2011-16
The Consumer – What You Need to Know
-
- No change in the proportion of consumers taking flights
- Are 25-34s eschewing cattle class for a better in-flight experience?
- Budget carriers benefit from short-haul volume
- The battle between low-cost carriers and full-service carriers
- Premium economy offers a more affordable alternative to business class
- Paying for ancillaries; just under a fifth of passengers buy add-ons
- Parents of under-16s open to paying for long-haul extras
- Locking in a fare at today’s price for a later booking
Flights Taken
-
- No change in the proportion of consumers taking flights
- Are 25-34s eschewing cattle class for a better in-flight experience?
-
- Figure 36: Flight types taken, June 2016 and June 2017
Flight Length
-
- Budget carriers benefit from short-haul volume
-
- Figure 37: Flight length, June 2017
Low-cost vs Full-service
-
- The battle between low-cost carriers and full-service carriers
-
- Figure 38: Airline types flown in the last 12 months, June 2016 and June 2017
-
- Figure 39: Total passenger numbers uplifted worldwide by UK airlines, low-cost* and full-service**, 2011-15
- Full-service carriers still dominate long-haul markets…
-
- Figure 40: Direct connectivity outside of Europe, full-service versus low-cost carrier, 2007 and 2017
- …but low-cost carriers are gaining a small foothold
- Consumers will have to put up with the negatives of flying low-cost long-haul
-
- Figure 41: Total passenger numbers uplifted worldwide by UK airlines, low-cost* and full-service**, 2011-15
Classes Flown
-
- Premium economy offers a more affordable alternative to business class
-
- Figure 42: Classes flown, June 2017
- Premium versus Standard Economy
-
- Figure 43: British Airways Premium Economy vs Ryanair Business Plus
- The rise of low-cost long-haul services
-
- Figure 44: A comparison between Premium Economy on a Boeing 787-9, full-service carrier British Airways vs low-cost long-haul carrier Norwegian, May 2017
- Encouraging leisure travellers to fly premium economy
-
- Figure 45: Attitudes towards premium economy, June 2017
-
- Figure 46: Price difference for a flight from London Heathrow to New York on Tuesday 18 July 2017, by Economy, Premium Economy and Business Class
Flight Behaviours
-
- Paying for ancillaries; just under a fifth of passengers buy add-ons
-
- Figure 47: Flight behaviours, June 2017
- Domestic business travellers spending on ancillaries; but possible market contraction on the horizon
-
- Figure 48: Passengers who paid for extra services on a short-haul flight, July 2017
- Nearly a quarter of long-haul passengers have paid for extras
-
- Figure 49: Passengers who paid for extra services on a short-haul flight, July 2017
-
- Figure 50: Attitudes towards paying for extra comfort on a long-haul flight, July 2017
- Figure 51: Willingness to pay for extra services on a long-haul flight, July 2017
- Google Flights usage is still small
- Industry players voice concerns over Google
Attitudes towards Flight Services I
-
- Parents of under-16s open to paying for long-haul extras
-
- Figure 52: Attitudes towards flight services I, June 2017
- Passengers open to using mobile airport apps
-
- Figure 53: Attitudes towards flight services I, June 2017
Attitudes towards Flight Services II
-
- Locking in a fare at today’s price for a later booking
-
- Figure 54: Attitudes towards flight services II, June 2017
- Smart technology for dealing with delays and cancellations
- Hassle of claiming for compensation opens up doors for tech companies that automate the process
-
- Figure 55: Attitudes towards flight services II, June 2017
CHAID Analysis – Airlines
-
- Methodology
- Parents of under-16s most open to paying for long-haul extras
-
- Figure 56: Target groups based on statements about airlines – CHAID – Tree output, June 2017
-
- Figure 57: Target groups based on statements about airlines – CHAID – Table output, June 2017
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
- Definitions
Appendix – Market Size and Forecast
-
- Forecast methodology
-
- Figure 58: Best- and worst-case forecast for total UK passenger uplift, 2017-22
- Figure 59: Best- and worst-case forecast for international UK passenger uplift, 2017-22
- Figure 60: Best- and worst-case forecast for domestic UK passenger uplift, 2017-22
Back to top