APEX’s Survey Says: Asian Travelers Value In-Flight Entertainment Above All
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APEX Insight: APEX’s Global Passenger Survey included several key takeaways about traveler preferences in Asia. Most notably, Asian passenger value in-flight entertainment more than any other regional demographic, seat comfort is valued more than personal space and Asian travelers are the most willing to pay for upgrades and enhancements.
Opening APEX’s regional conference in Singapore, Joe Leader, APEX chief executive officer, welcomed delegates with his vision for the future of air travel in Asia. “The passenger experience is now central to airline profitability,” he says. “Half of all airline profits industry-wide are being redirected to enhance passenger experience.”
The enhancement of the passenger experience is of utmost importance in the Asian market, as findings from APEX’s 2015 Global Passenger survey show that Asia had the lowest percentage of “very satisfied” passengers worldwide, at only 29 percent. And while the satisfaction rate in this region is low, Leader used other noteworthy results from the survey to plot a trajectory of travel enhancements for Asian travelers.
“The passenger experience is now central to airline profitability. Half of all airline profits industry-wide are being directed to enhance passenger experience.” – Joe Leader, APEX CEO
While most travelers worldwide value comfort and ambience to be the most important requirement for a satisfying flight, in-flight entertainment (IFE) was the paramount requirement for travelers in Asia. “The desire for entertainment onboard may mirror how people are using devices in TV at home,” Leader explains. Statistics show that Asian countries lead the word in device usage with as high as 79 percent of viewers in Japan, 72 percent in Hong Kong and 61 percent in Singapore using a second device while watching TV versus 48 percent worldwide.
Comfort is still important for Asian travelers, though notably, ingenuity matters significantly more than personal space. “Asian customers value the comfort of the seat more than the legroom of it,” Leader explains, going on to cite that three out of four Asian flyers say they are satisfied with overall cleanliness and lighting.
But, as Leader notes, “the most surprising news” is that Asian passengers are more willing to pay for passenger experience-related services and upgrades. The Asia Pacific region currently earns $4.34 net profit per passenger, and that number will increase if airlines continue to offer travelers choice, Leader predicts. “If you’re able to capture data about your passengers on the fly and to provide it to the people who are interacting with them, you’re going to have better customer experience interactions and will better able to monetize them,” he adds.
“The Asia Pacific region currently earns $4.34 net profit per passenger.”
Based on these key survey insights, Leader proposes takeaways for airlines based on their market and business model. For major airlines, he recommends a focus on ease of use, connectivity and upgradeability – noting that second screening options will be very important in the perception of passenger experience. The survey data also projects that on major airlines, passengers are willing to pay for premium services à la carte, so long as they are not abused.
For boutique carriers, Leader advocates that the personal touch is key. He cites Virgin America and JetBlue as strong examples of a North American boutique airlines that leverages lighting, IFE and excel at branding based on its unique passenger experience offerings. The same approach is taking off with Asian boutique airlines. “Bangkok Airways brands themselves on its close customer touch – I think that’s phenomenal. We’re going to see a lot more of that here,” he forecasts.
With high standards for IFE in the region, low-cost carriers without entertainment options will prove unpopular, Leader says. Seat density may be accepted, but comfort must be maintained. Unlike other regions, unbundled services in Asia will continue to be successful with a higher percentage of passengers willing to pay for them, making them a key source of ancillary revenue for low and ultra-low-cost carriers.