The Always-Connected Traveller:How Mobile Will Transform the Future of Air Travel

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June 16, 2011

Connecting anywhere, anytime from any device

In the Office

Corporate booking and Expense

Wi-Fi and Wired Networks

In The Hotel

On the Plane

Wi-FI Connectivity

At Home

Wi-Fi Home Networks

At the Airport

The Era of the Always Connected Traveler Has Arrived

On the Road Full feature phones, Smartphones & Tablets

Source: Travel Tech Consulting Inc.

The new mobile devices facilitate continuous engagement.

Mobile’s Impact Across the Travel Life Cycle

Dream, inspire, plan & book

At Airport Check-In, Buy

Ancillary & Merchandise

Explore, Connect and Share

Share, Feedback. Dream

On Board Plan, Entertain, and Explore

Smartphone Usage Frequent & Younger Travelers Have Greater Smartphone Usage

• One third of frequent flyers and one quarter of 18-34 year olds utilize smartphones and tablets for booking compared to 16% for total travelers

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Innovative Features / Services

Q25. Which of the following innovative features or services would you use?

• Real time updates on flight status and baggage information are clearly innovative features desired by passengers.

• Passengers are also anxious to receive directions on mobile devices and are ready to embrace mobile check-in and self luggage tagging.

Source: J.D Power

Proactive Communication is the Key

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Overall Airline Experience: Importance of Every Step

Q19. When flying how important are the following 6 steps for your overall airline travel experience?Sample: Total, 2,978, WTD.

Respondent rate the Pre-Flight and In-Flight stages of their trip as

being the most important

Helping the passenger to choose, book and

board the flight without inconvenience is key to delivering satisfaction

Source: J.D Power

Pr-Flight Communication is a Major Opportunity

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Aspects of Travel For Improvement

Q21. Which of the following aspects of your airlines travel experience do you think could be improved?

Sample: Total, 2,978, WTD.

Please Note:Top 3 selections are combinedA multiple response set

The improved management of disruptions is key to passenger satisfaction.

Source: J.D Power

Disruption Management is the Key

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Check-In Method

Q10. How did you check-in for your flight?

Sample: Total, 2,978, WTD.

Q12. What is your preferred check-in method?

Last Check-In Method

*Variance between Preferred and Actual Purchase Channel

59.4%Diff.*

19.3%

13.7%

5.6%

1.8%

0.2%

(+9.4%)

(-13.2%)

(+1.0%)

(+2.2%)

(+1%)

(-0.3%)

Preferred Method

Asia Europe Latin America

Middle East

North America

Online with PC 55.7% 60.9% 45.4% 59.7% 62.7%

Check-In Desk 20.5% 25.2% 40.3% 26.5% 10.8%

Self-Serve Kiosk 11.7% 7.2% 8.4% 5.5% 20.2%

Mobile/Smartphone 7.5% 5.0% 4.3% 3.2% 5.6%

SMS/Text 4.5% 1.7% 1.6% 4.8% 0.3%

Other 0.0% 0.0% 0.0% 0.5% 0.4%

Preferred Method

Preference for a Mobile/smartphone check-in method is still niche, though Asia seems the best expansion point

Source: J.D Power

Mobile Check-In is Still at an Early Stage of Adoption

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Pre-Purchase Additional Services

Q15. Which additional airline services, if any, did you pre-purchase?

Sample: Total, 2,978, WTD.

Please Note:A multiple response set

Q16. How did you purchase your additional airline services?

Additional Service Channel

Source: J.D Power

Few Airlines Offer Mobile Pre-Purchase of Ancillary Services

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Asia Europe ME NALA

Sample: Asia 700, Europe 574, Latin America 700, Middle East 403, North America 601 & Total, 2,978, WTD.

Q28. Which social media sites do you use for travel related purposes?

Social Media

Total

% of Respondents Using Social Media Travel Related Sites

Source: J.D Power

Social Media is Impacting Markets Worldwide

Standard Functionality Matrix AF APAC APAC EU JP * LA ME NA SC

Booking

Schedules

Check-in

BCBP

Itinerary Mgmt

Disruption Mgmt

Loyalty Access

Loyalty Enroll

Book Loyalty

Seats

Flight Status

Airport Info

= Today= 6 mos.= 12 mos.= > 12 Mos. or No Plans

EU = Latin AmericaLA

= Asia / Pacific APAC

= European = AfricaAF

= North AmericaNA = Middle EastME

= Scandinavian SC

= Japan JP

* Domestic Japan only Source: Travel Tech Consulting Inc.

Ancillaries on Mobile

AF APAC APAC EU LA JP * ME NA SC

Baggage

Premium Seating

Premium Boarding

Pre-purchase meal

Club Access

On board Wi-FI

Deals and Offers

Other Cars & Hotels

FF – use pts at merchants

NP but looking at cars & hotels

Travel Insurance

Wheel-chair

Hotels & Cars (end of 2011)

= Today= 6 mos.= 12 mos.=>12 mos. - no current plans

EU = Latin AmericaLA

= Asia / Pacific APAC

= European = AfricaAF

= North AmericaNA = Middle EastME

= Scandinavian SC

= Japan JP

Source: Travel Tech Consulting Inc.* Domestic Japan only

Advanced Functionality AF APAC APAC EU LA JP * ME NA SC

LBS

Merchandising

Advanced Disruption

Social Media

Movement Tracking

Push Notifications

Voice Recognition

Video

Payments

NFC

Augmented Reality

EU = Latin AmericaLA

= Asia / Pacific APAC

= European = AfricaAF = North AmericaNA

= Middle EastME

= Scandinavian SC

= Japan JP= 6 mos.

= 12 mos.

= No Plans= < 24 mos. or under consideration

= Today.

= 12-24 mos.

Source: Travel Tech Consulting Inc.* Domestic Japan only

NFC at the Airport

Native App Development

AF APAC APAC EU LA JP ME NA SC

IOS

Android

RIM

Nokia

Windows 7

HP WebOS

EU = Latin AmericaLA

= Asia / Pacific APAC

= European = AfricaAF

= North AmericaNA = Middle EastME

= Scandinavian SC

= Japan JP= Today

= 6 mos.

= 12 mos.

=>24mos. Or No Plans

= < 24 mos. or under consideration

Source: Travel Tech Consulting Inc.

Does an Airline Need a Downloadable App?

• Most airlines interviewed have invested in native app development with the Apple iPhone as the primary platform of choice, followed closely by Google’s Android OS.

• This does not diminish the need to redesign and optimize for the mobile web, as viewing a normal website on even the most advanced smartphone can be a frustrating experience.

Use of 3rd Party Developers

AF APAC APAC EU LA JP ME NA SC

Small – Midsized Mobile Generalists

Travel Mobile Specialists

Large System Integrators

PSS/DCS/GDS providers

In House

EU = Latin AmericaLA

= Asia / Pacific APAC

= European = AfricaAF

= North AmericaNA = Middle EastME

= Scandinavian SC

= Japan JP= Used Today and Tomorrow

= Considering

= Not Used

Source: Travel Tech Consulting Inc.

• Many airlines use small to midsized mobile generalists who are based locally for their mobile web and app development.

• Many airlines rely on PSS/DCS/GDS providers to develop mobile solutions that are tightly integrated with their internal systems.

• The most common response from the airlines interviewed was the use of three out of four of these types of third parties all performing different functions.

What is the Role of 3rd Party Developers?

LinkedIn for Full Feature Phone Java App Facebook for Feature Phone Java App

Source: LinkedIn and Facebook

Strategy for Full Feature Phones

• No airlines interviewed considered the creation of an application for full feature phones.

• Full Feature phones still dominate much of the world and Web browsing on a full feature phone can be a frustrating experience.

• Social media sites such as Linked-In and Facebook have recognized the fact that a vast majority of the world is still using full feature phones and have created Java applications

Full Feature Downloadable Apps are an Option to Consider

What is Mobile Innovation? Real Time Information is Essential

• Innovation should be simply measured on how successfully technology is deployed and how it impacts the passenger experience.

• Emerging tends such as augmented reality and RFID bag tags are innovative only if their value is perceived as improving the passenger experience

Critical Functionality Issues

• Ability to operate multi-channels

• Full range of solutions covering all aspects of cycle

• Integration with airline IT

• Consistency across channels

• Common business logic

• Robust architecture

Defining an ROI for Mobile Development• Efficiencies

– Reduction in staffing– Reduction in kiosk hardware needed– More efficient use of staff time

• New revenue opportunities– Ancillary sales– Impulse buying– Last minute bookings

• Maintaining or improving loyalty among frequent travelers– Mobile web and apps development are as an extension of

overall marketing expenses and brand management. – How your brand is perceived on various platforms needs

to be consistently managed.

Baggage

Carry on Fee Flight AlertsCurbsideCheck-in

Baggage Delivery

Airline Logo Jacket

Noise-Cancelling Earphones

3D Glasses

Premium Wine

Premium Seating

Premium Boarding

Pre-Purchase of Meals

Club Access

Wi-Fi

Airport

Available Now or within 12 months Widespread 1- 2 Years Widespread 3- 5 Years

Mobile Functionality

Airline Mobile Travel Timeline

Ancillary Services and Merchandising

Mobile boarding pass and BCBP

Airport Information

SMS Disruption Mgmt

Booking Schedules

Itinerary Mgmt Seat maps Check Loyalty Balance

Flt Status

Deals & Offers

Mobile Electronic Airline VoucherPassenger

TrackingMobile

Roaming Agent

NFC mobile boarding

Mobile payments

Ground Operations

Personalized Ancillary and Merchandizing Offers

Baggage

Carry on Fee Flight AlertsCurbsideCheck-in

Baggage Delivery

Airline Logo Jacket

Noise-Cancelling Earphones

3D Glasses

Premium Wine

Premium Seating

Premium Boarding

Pre-Purchase of Meals

Club Access

Wi-Fi

Airport Coupon Offers

Location Based Offers

Ancillary Services

Interactive Voice Commands

Augmented Reality

Immersive Tablet Apps

Interactive Videos

Source: Travel Tech Consulting Inc.

Book Loyalty Enroll in Loyalty

Immediate Social Media Response

Summary

Challenges• All airlines are struggling to keep up with the

increasing fragmentation of platforms and the rapid acceleration of mobile innovation.

Opportunity• Airlines must find ways to exploit mobile capabilities to

drive new revenue and enhance customer loyalty.• Airlines will use more advanced mobile computing to

– Drive greater self-service capabilities – Create more immersive mobile experiences– Drive greater airport efficiencies – Deploy greater personalised marketing for merchandising

of products and services.

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Thank You!Thank You!

norm@traveltechnology.comnorm@traveltechnology.comTwitter: NormTravelTech Twitter: NormTravelTech

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