Low-Cost Carriers vs. Full Service Carriers
From being a novel offering to evolving into something more edgy and user-friendly, airline Android apps have matured multifold in the last few quarters alone. videc’s App in the Sky assesses these developments across Android apps of 33 low-cost carriers (LCCs) and 77 full-service carriers (FSCs) in 4Q19.
HOTELS AND LODGING
Hotels are yet to emerge as a significant non-air travel product distributed via airline Android apps. 24% of LCC and 22% of FSC apps distributed lodging to their users.
CAR RENTALS/ HIRE
Airlines should view car rentals as an attractive add-on product for onward traveler journey. So far, only 27% of the LCC apps and 16% of the FSC apps upsell rentals in their shopping path.
Just 4% FSC airline apps analyzed offered holiday and vacation packages. In general, offering a multi-product offering is complex, and requires numerous partnerships. Still, in most cases airlines white-label the holiday product. But its transition in the app is still in very early stages.
Ground transfers are distributed via a fraction of airline apps. Just 6% LCC and 1% of the traditional carriers sell it in their apps.
It is surprising that few airlines have collaborated with companies such as Uber, Didi, and Grab to offer a seamless airport transfer experience to its users. In 4Q19, 4% of LCCs offered on-demand transport service on their Android apps while no traditional carriers offered the same.