2012 pax-survey-report

2012 PassengerSurvey ResultsAn analysis of IFE, Wi-Fi, Contentand Ancillary Revenue trendsamong passengers

© 2012 digEcor, Inc.

About this report

History and purposeBack in 2010, we released our very �rst Passenger Survey Results report and received a strong, positive response. Since then, we’ve been dedicated to providing relevant and up-to-date information for free to the in-�ight entertainment and connectivity industry. In this report, we are able to compare results across three years of data so you can see the trends and make better strategic decisions your IFE&C programs.

Who we aredigEcor, Inc. is a worldwide leader in handheld in-�ight entertainment. Specializing in proprietary devices and content management, we work with our clients to elevate their passengers’ in-�ight experience. Our mission is to provide low cost, full service entertainment that drives revenue to airlines. You can �nd us on the web at www.digEcor.com or call us at 1-801-489-2022.


We surveyed699 passengers


guys42

57girls


18-25 11%

26-40 35%

41-60 33%

60+ 21%


Age Percentage

5% �y every week

Represents 10.3% of annual �ights





6% �y every month

14% �y every 3 months

25% �y every 6 months

50% �y once per year


84% �y Economy, 9% �y Business and 7% �y First class


Where respondents currently reside

44%

15%

13%

04%

24%

What affectspassengers’ airline choice


What in�uences you when buying anairline ticket?Each bar represents the average response based on a scale of 0 to 5 (0 being No In�uence and 5 being Very In�uenced)


2010

2011

2012

Ticket PriceMost Important

# of Stops2nd MostImportant

IFE SystemType

MealService

Movie & TVShow SelectionLeast Important

In-�ightInternet2nd LeastImportant

N/A N/A

Frequent FlyerProgram

Imp

ort

ance

Analysis & take-awaysMovie or TV Show Selection

2011 Comparison: More important this year

Key Take-away: Upward trend YOY, just edges out Wi-Fi availability as the least in�uential

In-�ight Internet Availability


Key Take-away: 2nd least important factor, though, showed the 2nd largest gain in importance YOY

Frequent Flyer Program

2011 Comparison: A little more important this year

Key Take-away: Upward trending, has a much greater in�uence than meal selection and in-�ight services

Ticket Price


Key Take-away: Reversing a downward trend, far and away still the most important factor

Number of Stops


Key Take-away: Trails only Ticket Price as the most important factor in airline selection

Meal Service

2011 Comparison: A little more imporant this year

Key Take-away: Middle of the road in�uence in airline choice that decreases with passenger age

© 2012 digEcor, Inc. YOY = Year Over Year

IFE System Type


Key Take-away: Middle of the road in�uence but showed the largest gain YOY reversing a downward trend

IFE hardwaretrends


How do you prefer to receive orview entertainment in-�ight?

70%

60%

50%

40%

30%

20%

10%

00%18 - 25 26 - 30 31 - 35 36 - 40 41 - 45 46 - 50 51 - 55 56 - 60 60 +

Seat Back System50% Average

Passenger Owned Device24% Average

Airline Provided Handheld10% Average

Overhead System16% Average

Age Groups

Pre

fere

nce


Analysis & take-aways

2011 ComparisonOverall, the preference for handheld technology has decreased year over year while the preference for an embedded system, both seat-back and overhead, has increased. The embedded seat-back system showed the greatest increase in preference with nearly a 6% jump while personal media players and passenger owned devices decreased 5%.

Impact of Age & LocationYounger and middle-aged generations are embracing the handheld technology. In spite of the overall declining trend, respondents under the age of 40 showed an increase in handheld preference year-over-year.

Older generations still prefer embedded systems. The increasing trend in preference for embedded systems was driven by respondents between the ages of 36-60, which saw a nearly 20% increase in preference.

As seen in the graph, the seat back system is the clear cut global favorite. This holds true for all countries and ages surveyed except respondents from the United States aged 45 and under. They show a much greater preference for their own personal media player.

Airline Provided HandheldsAlthough handhelds rank low, additional surveying shows that 40% of passengers who have used a portable device, such as the digEplayer, prefer it over other IFE solutions. Further, case study has shown that uptake rates for handhelds are not negatively affected by the availability of in-�ight Internet. The two services have shown to be complementary.


What features are important in anIFE system?

Food and beverage orderingDestination informationDaily news, weather, sports or �nancial reportsMoving mapAn outlet to power your deviceStream music or movies from personal deviceMessage airline’s customer service teamPeer-to-peer communications (e.g. IM)Peer-to-peer game playParental Controls

12345678910*Respondents ranked each feature


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Big Move UpFood & Beverage took a big leap compared to 2011 moving up 4 spots on the list and ranking most important feature in 6 of 9 age groups with the highest placement being given by passengers aged 60 and over.

Generation GapDaily News was ranked signi�cantly lower for passengers aged 30 and below while Streaming was ranked signi�cantly higher for the same younger respondents.

Steady RiseThe ability to message the airlines customer service team showed a steady rank increase with age. The older respondents (56+) ranked it on average 3 spots higher than their younger counterparts who ranked Peer-to-peer Game Play and Communication as well as streaming more important.

Wait a MinuteAn Outlet to Power Your Device dropped two positions in the rankings compared to 2011. However statistically speaking, it had the lowest percentage drop of any downward mover (less than 2%) and nearly the smallest mathematical change in relative ranking compared to 2011.

Chart ToppersDaily News for 41-45 year olds; Outlet to Power Your Device for 51-55 year olds; Destination Information for 56-60 year olds

Analysis of IFE system features


eReader, 9%

MP3 Audio Player, 15%

Portable Gaming Device, 4%

Laptop / Notebook, 20%

Tablet PC, 10%

Smartphone, 28%

None of the Above, 14%

When �ying, do you take any of thefollowing onboard?


eReader

MP3 Audio Player

Portable Gaming Device

Laptop / Notebook

Tablet PC

Smartphone

Passenger devices brought onboardgrouped by age


80%

60%

40%

20%

00%

Pre

fere

nce

18 - 25 26 - 30 31 - 35 36 - 40 41 - 45 46 - 50 51 - 55 56 - 60 60 +

Age Groups

In-�ight Internettrends


How Wi-Fi affects the ticket buyingdecision, broken down by age

Impact on selecting an airlineEarlier in the report we showed that In-�ight Internet has little impact on choosing an airline. The 2012 results were in line with 2011 - the availability of Wi-Fi was again the second lowest factor.

Impact by ageAs seen by the green line, the availability of in-�ight Internet had the strongest impact on passengers age 26-40, which is broader than last year. Though, the impact declines after age 41 more rapidly than last year.

Comparison to ticket priceTo put this in perspective, the red line shows the impact of ticket price.

Imp

act

2012

Res

ults

Age

Imp

act

2011

Res

ults

Age


Why do you want the Internet?We surveyed both the willingness to pay for individual services and the overall desire for each service if it were provided for free.

GeneralBrowsing

SMS InstantMessaging

News Sites Email WebVideos

Des

ire

to U

se

*Anomaly shows that passengers prefer Email access over News Sites if having to pay but prefer News Sites over Email access if the Internet is available for free (consistently seen over the last two years)

Pay

2011

Free

Analysis & take-aways


News Websites


Key Take-away: Fewer people willing to pay for news sites but willing to pay 25% more for the service

Text Messaging

2011 Comparison: Biggest downward mover this year

Key Take-away: Downward trend of less people willing to pay for texting, ranked lowest of the factors surveyed

Email

2011 Comparison: A little less important this year

Key Take-away: Stable trend; Respondents willing to pay more for the service trailing only general browsing

Instant Messaging


Key Take-away: Upward trend, 2nd least important internet factor just ahead of text messaging; biggest percentage gain in price respondents willing to pay

Web Videos

2011 Comparison: Slightly less important this year

Key Take-away: Smallest mover of all Internet services surveyed with respondents willing to pay more for the service than last year

General Internet Browsing

2011 Comparison: Repeat top ranking

Key Take-away: Upward trend of more people willing to pay for the service

How passengers use Consumer Off-the-Shelf (COTS) devices

Age 60+

Age 18 - 25

Earlier in the report, we showed which COTS devices passengers are bringing onboard. Let’s take a closer look at what smartphones, tablets and laptops are being used for in-�ight and how that changes by age.


Smartphone

Tablet

Laptop

Work Games Movies& TV

Internet Reading Music

Usa

ge


SmartphonesGames and music dominate by a wide margin at nearly all ages. However, browsing the Internet scored higher than listening to music for ages 36-40 and 60+.

TabletsGames and Reading are the leaders overall. Note that Reading is less prevalent than work and watching movies/TV from ages 31-40.

LaptopsWork leads by a large margin over all other activities. Games, viewing movies/TV, and browsing the Internet all scored very similar across all ages with movies/TV edging out the Internet and Games.

Analysis of COTS Usage

Contentpreferences


Based on a given �ight length, how do you spend your time in-�ight?

The higher the activity on the chart, the more time passengers spend on that activity

Important changes from 20111) Sleeping on �ights of all lengths increased from 2011.2) Time spent reading the in-�ight magazine showed a downward trend.3) Browsing the Internet ranked dead last in all �ight lengths in 2011. However, this year it made a slight gain by moving up one position in the 1-2 hour �ight segment – beating out Work.

NoteAs �ights lengthen, reading of any kind declines and multimedia variants increase (which must then make people sleepy).


8+ HoursFlight Length

4 - 8 HoursFlight Length



Sleep

Watch Videos

Read

Listen to Music

Play Games

In-�ight Magazine

Work

Browse Internet

Read

Sleep

Watch Videos

Listen to Music

In-�ight Magazine

Play Games

Work

Browse Internet

Read

Sleep

Listen to Music

Watch Videos

In-�ight Magazine

Play Games

Work

Browse Internet

Read

Sleep

Listen to Music

In-�ight Magazine

Watch Videos

Play Games

Browse Internet

Work


How interested are you in each Entertainment category below?

MoviesInternetCurrent NewsMusicTelevision ShowsLive TelevisionCasual Games (e.g. Mahjong)Music VideosAudio BooksIndependent & Student FilmsShoppingBook SummariesAdvanced Games (e.g. Halo)Casino Gaming

3.452.892.762.722.652.562.081.921.831.621.461.381.301.19*Based on a scale of 0 to 5 (0 being No Interest and 5 being Extremely Interested)

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Most desired content types


How interested are you in eachMovie type below?

Sati

sfac

tio

nPo

pula

r pre

-DVD

rele

ase

Less

pop

ular

pre-

DVD

rele

ase

Popu

lar D

VD

rele

ase

(6 -

12 m

os)

Popu

lar D

VD

rele

ase

(1 -

5 yr

s)Po

pula

r cla

ssics

(mor

e th

an 5

yrs)

Popu

lar �

lm

fest

ival m

ovie

s

4.33

3.533.88

3.44 3.31 3.21


What does the previous graph show?

Passengers’ strongest preference is for popular, pre-DVD release movies.

However, as seen now in three consecutive years, passengers would rather watch popular movies already out on DVD than pre-DVD release movies that are less popular. This result continues to go against the belief of many airlines that early window content always trumps classic titles regardless of popularity.


Ancillary revenue trends


NoteOver 56% of passengers are willing to browse through an onboard shopping catalog. However, that number jumps to nearly 60% amongst females and drops to 52% among males.

How likely are you to shop onan airplane?


Total

Male

FemaleYes

00%

10%

20%

30%

40%

50%

60%

No

How likely are you to look for orpurchase the following product types?

GiftsBooksTravelFood, Health & BeautyMovies, Music & GamesApparel, Shoes & JewelryElectronicsServicesHome & GardenComputer & Of�cesSports & OutdoorsToys, Kids & BabyTools, Auto & Industrial

2.912.752.722.682.642.542.492.252.182.051.921.831.51*Based on a scale of 0 to 5 (0 being No Interest and 5 being Extremely Interested)**Independent of rankings, Gift and Food, Health, & Beauty were the only product segments surveyed that had a positive increase in likelihood to purchase in 2012. All other products showed a downward trend.

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Most desired products


*Males take over the spending above the $50 threshold while females thrive in the $10 - $50 range**The average price passengers are willing to spend has increased year-over-year from 2011

$0 < $10 < $25 < $50 < $100 < $250 $250 +

If you �nd a product you want, howmuch are you likely to spend?

# o

f R

esp

ond

ents

Total

Male

Female


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Which services would you like tohave availabile in-�ight?

Mobile Destination GuideHotel ReservationsRental Car ReservationsShow or Event TicketsTheme Park TicketsCalling Card

3.122.942.932.912.752.42*Based on a scale of 0 to 5 (0 being No Interest and 5 being Extremely Interested)

NoteThe mobile destination guide service was the big mover as it switched places with rental car reservations for this year’s most desired additional service. While the desire for rental car reservations dropped in ranking, more people desired the feature this year over last year.


Female

*About 5% of the respondents who were willing to browse an in-�ight shopping catalog were not willing at all to use a credit card for a purchase in-�ight. Over 90% of those not willing to use a credit card cited security risks as their reasoning.

Males that browse a shopping catalog in-�ight are over 10% more likely to use a credit card on a purchase than women.

Likelihood to use a credit card in-�ightgrouped by gender

Male

Likelihood

35%

30%

25%

20%

15%

10%

05%

00%


% o

f R

esp

ond

ents

Likelihood to use a credit card in-�ightgrouped by age and by country

Like

liho

od

Average Response Trendline


18 - 25 26 - 30 31 - 35 36 - 40 41 - 45 46 - 50

UnitedStates

Canada England France Australia Other

51 - 55 56 - 60 60 +

THANKYOU

VERYMUCH

digEcor, Inc.

1-801-489-2022

[email protected]

[email protected]

www.digEcor.com

@digEcor


2012 pax-survey-report

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