November 6, 2019–Through AlphaWise, we conducted a global survey of 200+ corporate travel managers responsible for airline negotiations. Overall, 2020 budget and demand growth are expected to step-up moderately.

We highlight the following key takeaways:

  1. Global Corporate Volumes and Pricing are Decelerating for Air Travel. Respondents in our survey anticipate ~3.4% global passenger volume growth (response-weighted), which is below last year’s ~5.1%. And on the airline pricing side of the equation, it is seeing a similar step-down with growth of ~1.3% versus the previous year at ~1.8% (both response-weighted).
  2. Travel Budgets Should Grow Slower Into 2020. Over the past year, corporate travel revenues have remained steady despite the volatile backdrop. That said, growth in budget expectations for air and hotel are set to be lower with respondents expecting ~4.0% growth into 2020 compared to last year’s forecast of ~5.7%.
  3. North America Domestic Remains the Leading Region. Global volume and pricing expectations vary quite a bit across the relevant regional exposures for US airlines. Specifically, North America Domestic is the strongest region again this year given its volume and pricing expectations at ~2.3% and ~1.9%, respectively, followed by LatAm, Transatlantic, then Asia Pacific.
  4. Premium Policies are Becoming More Stringent, But with Discounts Steady. Along with lower budget expectations, premium travel policies are becoming more conservative with a ~2x increase in managers pointing to more stringent policies in 2020. And on discounts, they remain steady and within the historical range of 10-15%.
  5. Delta is Still Best-in-Class. DAL has consistently screened as the preferred airline amongst corporate travel managers and again held this position based on performance across all polled categories. As such, we expect the airline to hold off any material share shift in the near-term, though note that UAL has made some gains in its relative positioning.
  6. Declining LCC Corporate Share Reversed. This year found corporate travel managers reversing the trend of decreasing LCC use with an up-tick YoY. Specifically, the travel budget allocated for low cost carriers increased to ~12% from the prior year’s ~9%. Overall, we view this trend as a potential disrupter for the Legacies over the long-term.

Read more here.

  • Only 9% of business aviation professionals think the industry is ‘very effective’ at communicating its many benefits
  • 55% think the Panama Papers damaged the industry, and just 15% think the sector did a decent job in defending its reputation
  • 44% believe individual company brands are hampered by the industry’s poor image
  • 65% believe brand is set to become more important in business aviation  

March 22, 2018–A new survey of business aviation professionals (1) reveals just one in three believes the sector has a positive image, with 64% describing it as either ‘negative’ or ‘neutral’.

The survey was conducted by the international communications agency Citigate Dewe Rogerson, which has a specialist team focusing on the business aviation sector.  The findings from the study are published in a new report entitled ‘The Growing Importance of Branding in Business Aviation’ (to register for a copy of the report click here )

The study also revealed that just 9% of business aviation professionals believe the industry is ‘very effective’ at communicating its many benefits such as its contribution to economic growth and its creation of jobs.

When it comes to the wider mainstream media, two thirds feel the sector only gets media coverage when there has been a crash or scandal.    Indeed 56% of those interviewed feel the recent publication of the Panama Papers had a negative impact on the industry’s image, and just 13% believe the sector did a respectable job in defending its reputation during this period.

In respect of individual organisations working in the business aviation sector, only 11% of those interviewed think companies have been ‘very effective’ in developing their brands.

Some 44% of business aviation professionals interviewed believe companies operating in the sector are hampered by the poor image of the industry, and only 35% think senior management at these organisations take their brands seriously enough.

Phil Anderson, Executive Director, Citigate Dewe Rogerson said: The growth of social media, the digital revolution taking place in the business aviation sector and the huge opportunities presented by the growing number of people using business aircraft for the first time means brand has never been more important.  However, our findings show that many people working in the sector feel it has a negative image in the wider world and it needs to be more proactive in promoting its many benefits for economies and the wider communities.

“The good news is that our research shows there is a growing awareness of the importance of brand in the industry, and a commitment to do more here.”

Over the next three to five years, 34% of business aviation professionals think brand profiles will become ‘much more important’ in the sector, and 31% think their importance will increase ‘slightly’.  In terms of why they believe this, 47% say it’s because competition in the sector will increase, and this is followed by 45% who say it’s because customers and business partners are becoming more demanding and discerning about who they work with or buy from.    Some 38% say it will increase because there will be many new customers coming into the market, and 33% believe companies will need to strengthen their brands to help fend off new entrants to the sector.

Phil Anderson said: “As the industry becomes more focused on the importance of brand, 78% of business aviation professionals we interviewed believe companies in the sector will invest more in their brands over the next three years – with one in five believing there will be a significant increase in the amount spent here.

“This is a positive sign because if the industry and the companies working in it can improve their image, it should help fuel growth, which will benefit everyone.”

“In business aviation, great brand management doesn’t need to be expensive to be effective,”said Philtre Digital MD Richard Thomas. “It just takes the imagination to understand why you are unique and the discipline to consistently articulate that message over and over.”

(To register for a copy of the report click here)

Berkshire, UK | September 20, 2016– The typical premium longhaul passenger is highly engaged with current events and uses print media alongside other channels to stay informed at the airport and inflight.

That’s the headline finding of an authoritative new study of media consumption among US travellers, commissioned by Dawson Media Direct.

The survey also turned up a stat some industry watchers might find surprising: that the so-called Digital Generation is marginally more engaged than its elders, with “staying informed” cited as more important to travellers in the 21 to 39 range than to those aged 40-plus.

‘Gen D’ is a more avid consumer of conventional print media too, despite owning multiple devices, and considers paper publications the best resource for reading longer in-depth content.

“DMD wanted to learn exactly how those key first and business class passengers use print and digital news content, in daily life and flying longhaul”, says Heather Browand, SVP for US sales and marketing, “so we worked with the independent travel industry specialist Atmosphere Research to develop a unique online survey of premium fliers in our market.”

The study targeted passengers aged 21-70 who in the last 6 months had taken at least three fully paid premium-cabin round-trips between the US and Africa, Asia- Pacific, Europe, India, Middle East or South America.

About 400 surveys were completed and analysed, revealing that print media becomes tangibly more important to this audience on a longhaul trip than otherwise.

77% of premium passengers view flight time as a key time to read the press, and 54% of them read some print media at the airport or onboard.

Premium fliers also tend to read more printed press during air travel, with the number spending over an hour a day reading newspapers increasing by a third compared to everyday behaviour.

38% of them rank reading a printed newspaper or magazine among their top three activities under surveyed conditions, placing it ahead of digital news content, print or digital books.

“The study throws up so many positives for us as a provider of both print and digital publications to the industry, says Browand.

“It affirms that both sides of the business are in good shape, and that by-and-large we’re delivering the media our premium end-user customers expect and value.”

Barcelona | May 24, 2016– Airline passengers across the globe are so comfortable with technology today that they are choosing to use it rather than interacting with people. This is according to the 2016 SITA Passenger IT Trends Survey, a global survey released today by IT provider SITA and co-sponsored by Air Transport World.

SITA’s survey shows that 85% of passengers had a positive travel experience, up from 80% last year. Noticeably, passengers are happier at the steps of the journey where they have more choice and control in how they manage their trip. At booking, which they can do online, using a mobile or with an agent, 93% had a positive experience.

Passengers experience the most negative emotions during the security screening, passport control and baggage collection steps of the journey, peaking at nearly one third of passengers at security. These are also the steps with the least number of self-service technology options.

Francesco Violante, CEO, SITA, said: “Knowing that passengers prefer using their own devices and self-service technology throughout the journey should encourage airlines, airports and government to examine how they can transform the experience at security, border control and baggage collection. The technology is available today and the industry can be confident that it will be welcomed by passengers.”

But not all passengers are the same and SITA has analyzed the behavior of four different types – Careful Planner, Pampered, Hyper-Connected and Open-Minded Adventurer. Each profile uses technology in different ways and SITA’s research shows that a ‘one-size fits all’ approach risks alienating some passengers. To help illustrate the differences SITA has made it possible for people to find out their own passenger profile. Anyone can complete this short online form to find out what kind of traveler they are and compare their personal behavior to others from around the world.

Regardless of their type, once passengers are converted from person-to-person interaction to using self-service technology few want to go back. Even if they are not satisfied with one type of self-service technology they tend to try another rather than revert to human contact. When it comes to check-in 91% using self-service technology will do so again and again.

Violante, added: “It is clear that passengers love technology. Once they start to use kiosks, websites, mobile devices, automated gates and other tech they will continue to do so rather than returning to human interaction. As airlines and airports look to introduce new technology they should also note that ‘ease-of-use’ is vital for passengers. At check-in, the ease of use can increase kiosk adoption by as much as 86% and mobile by 59%.”

Other key findings from the survey include:

  • A majority of passengers (55%) use some self-service tech on their journey but the end-to-end self-service journey is not yet widespread.
  • If passengers have a negative experience, 54% will try a different self-service technology.
  • When using mobiles for travel 92% find check-in easy to use.
  • Passengers indicate they want more mobile services and baggage notifications are a top priority.
  • More than half of passengers (56%) using self-service baggage bag-drop plan to use it again.
  • ‘Hyper-connected’ and ‘Pampered’ passengers are the happiest.
  • 92% of passengers are happy during dwell time at the airport but providing poor quality services like food, entertainment and shopping is worse than not providing any.

This is the 11th edition of the SITA/ATW Passenger IT Trends Survey. It was conducted with more than 9,000 passengers from 19 countries across the Americas, Asia, Europe, the Middle East and Africa representing almost three-quarters of global passenger traffic.

* Visit travelerprofile.sita.aero to find out what kind of traveler you are.

* More details of the results, including information on the emotional scale tool and the technology adoption model, are available here.