AIRLINE APPS THAT DO NOT OFFER PRIORITY CHECK-IN
AIRLINE APPS THAT DO NOT OFFER PREPAID SEAT SELECTION
AIRLINE APPS THAT OFFER MEALS PURCHASE
AIRLINE APPS THAT OFFER ADVANCED BAGGAGE PURCHASE
AIRLINE APPS THAT OFFER ADVANCED INSURANCE PURCHASE
Ancillaries are the fastest-growing revenue stream for airlines. videc’s App in the Sky examines Android apps of 110 airlines worldwide to see how many offer the below unbundled products.
At 69%, this is the most-offered ancillary product within airline apps in 4Q19. This was down from 74% in 3Q19, because of the increase in the number of airlines apps analyzed. If late-to-arrive and first-to-board is the track that fliers want to take, then airlines are rolling out the red carpet to deliver this option at a fee. Offering this via their app allows users who are not part of their high-value frequent flier program to buy this.
PREPAID SEAT SELECTION
Most seat selection purchases happen at the time of booking. Many airlines offer this on their app, which is an indication of how pervasive and popular this option is among fliers. The 4Q19 analysis reveals 68% of airline apps offer the preferred seat selection, versus 66% in 3Q19, an indication of more airlines actively integrating the seat purchase module within mobile apps.
ADVANCED MEALS PURCHASE
It is surprising that only 38% of the airline apps in 4Q19 sell meals in their app shopping flow. Still, this could also be because of the higher ratio of full-service carriers versus low-cost carriers in the analysis. The former typically includes meals in its bundled fare rather than upselling. In case of LCCs, meals purchase also happens either post-booking or directly on the flight. Airlines have done rather little to upsell meals via this channel.
ADVANCED BAGGAGE PURCHASE
Around one in three airlines – 35% – upsell baggage purchase via their mobile apps. Often times, the extra luggage allowance purchase happens over-the-counter while checking-in.
ADVANCED INSURANCE PURCHASE
Flight disruption poses a significant threat to airline operations and expense line – particularly in Europe, which has stringent Air Passenger Rights. Yet, not many airline apps (24%) offer insurance purchase. Overall, airlines have some more ways to go in integrating travel insurance in their mobile app shopping path.
In principle, the incidence of priority baggage purchase should align with priority check-in, but we see a huge gap in between the two. Only 10% of the airline apps analyzed in 4Q19 offered this ancillary service.
Wi-Fi passes haven’t reached mainstream due to a combination of factors. Chief among them are massive capital expenditure on part the airline, and varying telecom regulations by country in case of overseas flights. Just 8% of the airline apps offered Wi-Fi purchase in 4Q19.
DUTY FREE/ RETAIL SHOPPING
Airlines are either retailing onboard or tying up with partners on the ground, especially at the airports. But a few (7%) are taking e-retail a step further and are incorporating shopping within their apps. The retail opportunity is vast and those doing it right stand a chance to gain further insight into their travelers’ lifestyle.