NON-AIR PRODUCTS DISTRIBUTED ON AIRLINE APPS - 2Q19

From being a novel offering to evolving into something more edgy and user-friendly, airline apps have matured multifold in the last few quarters alone, catalyzed of course by technology. Some products on the apps have become standardized with minor tweaks that offer users more ease, while new products have spawned on the sidelines, giving birth to new needs. videc’s App in the Sky assesses these developments within Android apps as airlines worldwide cross-sell varied products to travelers.
With air ticketing being fundamental to the airline app, we have decided to drop this criterion and in turn focus on other non-air products that airlines are introducing to maintain user stickiness. However, there are still a select few, smaller airlines that either don’t have an app (just a mobile-friendly website) or have one that simply redirects users to one.

HOTELS AND LODGING

Accommodation is one of the biggest travel segments and airlines are rapidly striking partnerships with wholesalers and online intermediaries to retail it. Hotels are widely-offered non-air travel product on airline apps; it is present in 30% of apps – a reflection of how critical upselling this product is in the travelers’ journey. But these are early days still and airlines will have to observe this space before investing more in this.

Base: 65 airlines | View Methodology

CAR RENTALS/HIRE

Travelers typically stick to the rental company their company uses, or those they are most comfortable with since car rental companies also have loyalty programs. Still, airlines view car rentals as an attractive add-on product for onward traveler journey, as is evident with its incorporation in 20% of the airline apps. Car rentals work well with corporate travelers and road warriors alike.

Base: 65 airlines | View Methodology

GROUND TRANSPORTATION

This service is typically the forte of a travel agent/travel desk so it makes sense that very few airlines cross-sell coach or other forms of surface transfers to its passengers. Typically, products that focus on individuals rather than a group works better on an airline app.

Base: 65 airlines | View Methodology

ON-DEMAND TRANSPORTATION

In a world where ride-sharing and taxi-hailing has become a way of life, very few airlines have collaborated with companies such as Uber, Didi, and Grab to offer a seamless airport transfer experience to its travelers. Some even feature special offers for bookings via the airline apps so as to improve app stickiness.

Base: 65 airlines | View Methodology



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