2015AIR TRANSPORT INDUSTRY INSIGHTS

10ANNIVERSARY PASSENGER S

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THE PASSENGER IT TRENDS SURVEY | © SITA 2015

FOREWORD

2

As more people crowd into the world’s airport terminals, the quality of travel becomes ever-more important.

In our 10th Passenger IT Trends Survey, co-sponsored by Air Transport World and SITA, we extended the scope to obtain a better understanding of the connection between a passenger’s use of technology and their emotions at different stages of the journey – a guide to the level of passenger satisfaction.

Our survey indicates that not only are passengers happy to use technology for travel tasks, but have a clear preference to use their own technology when they have the choice.

Mobile, above all, is becoming the favored platform, and holds great promise to improve the passenger experience by giving passengers a smooth flow, end-to-end, through the travel steps.

The on-the-go capability of mobile devices means it is at the airport where they can make a real difference. It is also the first and the last part of a journey so often sets the tone of the overall travel experience.

Passengers want to be proactively informed throughout their travel to reduce their stress levels, including updates on flight delays and baggage collection.

In this regard, airports and airlines are starting to make greater use of contactless technologies, such as Wi-Fi, Bluetooth, beacons and NFC.

Survey respondents showed a strong inclination for using mobile apps over the mobile browser. In fact today, check-in using an app is used by around 8% of passengers, but expected to grow 90% over the next year. Mobile browser check-in is growing at half that pace and used today by only 3% of passengers.

The opportunity for the industry is to provide a seamless and stress free experience for passengers regardless of which technology and device they are using.

Francesco ViolanteCEO, SITA

Karen WalkerEDITOR-IN-CHIEF, ATW

3THE PASSENGER IT TRENDS SURVEY | © SITA 2015

CONTENTS

Towards a joined up journey 4

Does technology make for a happier passenger? 6

What passengers want from mobile 8

Bags in focus 9

For more information go to:

www.sita.aero/surveys

THE PASSENGER IT TRENDS SURVEY | © SITA 2015

Technology has undeniably reshaped travel behavior and today passengers are using an array of technologies when traveling. Some, such as the desktops and mobile devices, are their own, while others are deployed and managed by the air transport industry, including kiosks, bag-drop stations, and automated boarding-gates.

It is a complicated landscape for both passengers and the travel industry to deal with, but our survey indicates smartphones are fast becoming the unifying technology that could ultimately deliver a connected end-to-end experience for passengers. This year smartphone penetration among flyers surveyed has nudged up to 83% of passengers from 81% last year, while 15% travel with three mobile devices (mobile phone, tablet, laptop).

Despite the high penetration, mobile devices have yet to figure highly as a travel tool beyond entertainment for most of the passengers surveyed. Nevertheless, it is clear from the direction of the results that there is a growing base of people who see their travel needs better served by their mobile device and consequently the findings anticipate an increasing use of mobile at more steps of the journey.

Booking behavior is migrating off the desktop

People still prefer to do airfare searches and book flights on a desktop/laptop from the comfort of their home. In fact 62% of our respondents did just that for their last flight. However, there is a noticeable migration towards using mobile devices, which will see booking travel through a desktop/laptop fall to 53% of passengers over the next year.

Overall, 26% of passengers booked their last flight via a mobile device, but this could grow to 36% over the next 12 months. Interestingly, booking travel through tablets is growing much faster than through smartphones, but with tablets, respondents prefer to do the booking via a browser, while smartphone users prefer to use a mobile app.

TOWARDS A JOINED UP JOURNEY

4

110%EXPECTED GROWTH RATE FOR MOBILE BOARDING PASS

EXPECTED GROWTH RATES FOR BOOKING, CHECK-IN, BOARDING PASS IN 2016

BOARDINGPASS

BOOKING

CHECK-IN

Mobile devices Face to FaceDesktop/Laptop Kiosk

+79%

+110%

+16%

+16%

-14%

-15%

-15%

-30%0%

+3%

-27%

+39%

5

The survey indicates there is a small core of 10% of people who both today and in the near future prefer the personal interaction of booking at a physical shop or through a call center rather than using self-service channels.

Strong usage of self-service check-in

A technology makeover for the check-in process has been underway for some time. Our survey confirms a rapid move away from using an airport desk as the availability of self-service options becomes widespread. Forty-three percent of passengers surveyed still used a check-in counter, but the majority of passengers (57%) are using a self-service option – online, kiosk or mobile.

Mobile is the fastest growing check-in channel and is expected to go from 11% of passengers today to 20% in 2016. Within that, there is a much stronger preference for using a mobile app rather than the mobile browser. The online channel (desktop/laptop) also continues to grow, albeit much more slowly, moving from 28% of passengers surveyed to 32%.

Mobile boarding passes are the future

Most passengers retrieved their boarding pass at the airport either directly from an airport desk (33%) or from a kiosk (29%), but there is a strong intention over the next year for passengers to be in possession of their boarding pass by the time they get to the airport. Home printing of boarding passes will grow 20% to reach 26% of passengers, while adoption of mobile boarding passes is expected to more than double to be the preferred choice of 18% of passengers within a year.

The user migration to mobile boarding passes represents a transformational shift for the industry. It will open the door to further automation and enable the elimination of paper from the travel process.

THE PASSENGER IT TRENDS SURVEY | © SITA 2015

DOES TECHNOLOGY MAKE FOR A HAPPIER PASSENGER?

Technology has proved effective for dealing with the growing number of passengers, but has it also put some of the enjoyment back into flying?

Survey respondents were asked to rate their last travel experience through each step of the journey in terms of positive emotions (happiness/excitement) and negative emotions (anger/anxiety), based on Plutchik’s Wheel of Emotions model.

The results indicate that for a large proportion of passengers most steps of the journey were a positive experience, although dragging down that feel good factor is ongoing frustration with security, and to a lesser extent bag collection. In fact, 36% of passengers have negative emotions at the security stage and 31% at bag collection.

Not surprisingly, the highest number of respondents showed positive emotions when they are able to relax, so dwell time before boarding and onboard the aircraft received strongly positive ratings of 95% and 91% of passengers.

97%OF PASSENGERS HAD A POSITIVE EXPERIENCE USING WEB CHECK-IN

©2015 SITA.

EMOTIONAL EXTREMES DURING THE JOURNEY

Positive emotions

Negative emotions

9%

91%

14% 11%21%

36%25%

5%12% 9%

31%

86% 89%79%

64%75%

88%95% 91%

69%

Boo

king

Chec

k-in

Bag

tag

Bag

dro

p

Secu

rity

Pass

port

Dw

ell t

ime

Boa

rdin

g

On

boar

d

Bag

col

lect

ion

% O

F PA

SSEN

GER

S FE

ELIN

G E

MO

TIO

NS

PASSENGER JOURNEY

EMOTIONAL EXTREMES DURING THE JOURNEY

THE PASSENGER IT TRENDS SURVEY | © SITA 20156

7THE PASSENGER IT TRENDS SURVEY | © SITA 2015

Technology improves the mood

Passengers widely associate positive emotions with the early steps in the journey where technology usage by passengers is a well established and expected part of the experience. In particular 91% of passengers rated the booking stage as a positive experience with only 9% having a negative experience.

Check-in is also rated as a positive experience by the vast majority of passengers (86%) and delving deeper it is clear more passengers had a positive experience when they used self-service than when they used an airport check-in desk.

For example, 97% of passenger who used web check-in had a positive experience compared to only 83% using the airport desk.

The results tend to support the view that technology has a positive effect on the travel experience for most passengers and that in turn will reinforce its level of acceptance and adoption.

Staff support is important

While self-service check-in technology is well established the introduction of technologies at other stages of the journey requires careful management to ensure they do not add to passenger stress and frustration.

For example, our survey indicates a wide difference in the level of positive experience between staffed and unstaffed bag-drop. 77% of passengers felt a positive emotion using a staffed bag-drop station compared with 59% for an unstaffed station.

The result indicates the importance of having a transition plan when introducing new technology for passengers until they have obtained a high level of familiarity.

POSITIVE EMOTIONS & CHECK-IN

% of passengers with positive emotions using check-in options

*

*

*

97% 92% 90%83%

Web check-in Smartphone Apps

Airline deskSelf-service kiosk

Positive emotions

* Statistically significant

POSITIVE EMOTIONS AND CHECK-IN

* The result is significant at p <0.05

POSITIVE EMOTIONS & BAG-DROP

% of passengers with positive emotions using self bag-drop

*

77%

59%

Dedicated bag-dropstation (staffed)

Bag-drop self-service station (unstaffed)

Positive emotions

Statistically significant*

POSITIVE EMOTIONS AND BAG-DROP

Positive emotions Statistically significant*

POSITIVE EMOTIONS & BAG-DROP

% of passengers with positive emotions using self bag-drop

*

77%

59%

Dedicated bag-dropstation (staffed)

Bag-drop self-service station (unstaffed)

Positive emotions

Statistically significant*

8 THE PASSENGER IT TRENDS SURVEY | © SITA 2015

Passengers want to use their devices on board

Passengers are keen to make better use of their time during the flight with a preference to use their own devices rather than airline-provided entertainment options.

Two-thirds of passengers (67%) said they would “definitely” want access to their own devices for entertainment compared to 56% for airline-provided content. Passengers also want to stay connected to the ground so that they can send and receive text/emails (60%), as well as stream live content (56%).

Overall, the results suggest passengers are keen to have the same level of control over how they spend time during the flight as they are starting to get on the ground through self-service initiatives.

Passengers want to use their devices at airport

If mobile technology represents a breakthrough in providing passengers with a connected journey what new mobile services are passengers interested in?

High on the list are services providing information on components of their journey. For example, flight updates would “definitely” be used by 72% of passengers, while 63% would “definitely” want more details, such as carousel and wait time, for bag collection at the destination airport.

With more location-aware technology being deployed throughout airports, travelers will soon benefit from more targeted services based on where they are in their journey. This should ensure passengers not only get the information they want, but get it at the right time.

Passengers are also positive on using their mobile devices to facilitate automation of their journey through the airport. Nearly sixty percent of passengers want to use their smartphones for access, including boarding the aircraft and airport lounges, with slightly less (59%) keen to use smartphones for identification purposes.

Of less importance, is using the phone for purchases and making payments.

WHAT PASSENGERS WANT FROM MOBILE

67%OF PASSENGERS WOULD ‘DEFINITELY’ ACCESS ENTERTAINMENT ON THEIR OWN TABLET

72% 23%

63% 33%

60% 31%

59% 33%

57% 35%

Flight updates

Bag collection updates

Scan phone for access

Use mobile for ID

Airport maps & directions

PASSENGER DEMAND FOR NEW SERVICES AT AIRPORT

% of passengers using new mobile services in the future

Yes, would definitely use

May use

PASSENGER DEMAND FOR NEW SERVICES AT AIRPORT

PASSENGER DEMAND FOR NEW SERVICES ON BOARD

©2015 SITA.

PASSENGER DEMAND FOR NEW SERVICES ON BOARD

% of passengers who would use the service in-flight

Yes, would definitely use

May use

67%Access entertainment on own tablet

Send mails, text messages

Access live flight information

24%

60% 31%

60% 32%

56% 37%

56% 35%

Access entertainment on airline tablet

Access live streaming of content

©2015 SITA.

PASSENGER DEMAND FOR NEW SERVICES ON BOARD

% of passengers who would use the service in-flight

Yes, would definitely use

May use

67%Access entertainment on own tablet

Send mails, text messages

Access live flight information

24%

60% 31%

60% 32%

56% 37%

56% 35%

Access entertainment on airline tablet

Access live streaming of content

©2015 SITA.

PASSENGER DEMAND FOR NEW SERVICES ON BOARD

% of passengers who would use the service in-flight

Yes, would definitely use

May use

67%Access entertainment on own tablet

Send mails, text messages

Access live flight information

24%

60% 31%

60% 32%

56% 37%

56% 35%

Access entertainment on airline tablet

Access live streaming of content

Self-service has made traveling with carry-on bags the quick and easier way to fly and our survey indicates nearly one in five passengers travels this way.

Overall, passengers traveled with 1.2 bags on average with 81% of passengers checking-in one or more of their bags. Today, airlines and airports are very much focused on speeding up baggage processing for this large majority of travelers by installing bag-drop technology, which operates much faster than traditional baggage processing methods. In addition, some airlines are also trialing home-printed and permanent bag-tag alternatives to give passengers the option of self-tagging bags before they arrive at the airport.

Even so, widespread adoption of self-service baggage handling appears some way off. Sixty-four percent of passengers who checked-in luggage used the airline check-in counter with the remainder using either a staffed (16%) or unstaffed bag-drop (4%).

Final destination

A long wait at the carousel to collect bags after a flight can add a negative ending to an otherwise enjoyable experience. Based on the passenger’s own perception of their last flight, results indicate that 42% of passengers received their baggage within 10 minutes of arriving at the carousel, while 88% waited less than half an hour.

To make that wait more painless some airlines and airports are providing advanced notice of the carousel and the respective wait time for luggage through apps or airport signage. This gives passengers the opportunity to better use the time, such as contacting meeters and greeters or booking onward transport.

In addition, with IATA’s new resolution 753 coming into effect in 2018, member airlines will be required to track passengers’ baggage throughout its journey. One of the biggest consequences will be the much closer monitoring of inbound (arrival/transfer bags).

BAGS IN FOCUS

20%OF PASSENGERS USE SELF-SERVICE BAG-DROP TODAY

©2015 SITA.

PASSENGERS’ PERCEIVED WAITING TIME FOR BAG COLLECTION

Less then 10 minutes

10–30 minutes

Less than 1 hour

Over 1 hour45%

10%2%

43%

HOW DO WE TRAVEL WITH BAGS?

PASSENGERS’ PERCEIVED WAITING TIME FOR BAG COLLECTION

HOW DO WE TRAVEL WITH BAGS?

% of passengers traveling with bags

Only hand-bags

Only checked-bags

Both

78%

19%

3%

9THE PASSENGER IT TRENDS SURVEY | © SITA 2015

10 THE PASSENGER IT TRENDS SURVEY | © SITA 2015

Background

The 10th edition of the Passenger IT Trends Survey was conducted globally in Q1 2015.

The key findings are based on an online survey of 5,871 respondents from countries across Americas, Asia, Europe and the Middle East and Africa.

The 17 countries included in the survey were: Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Mexico, Saudi Arabia,South Africa, Spain, Russia, Turkey, UAE, UK, USA.

Travel History

Respondents must have travelled Between Dec 2014 and March 2015. Collectively, the respondents represent 76% of total passenger traffic.

Emotions

Participants were asked to review each stage of their journey and identify their range of emotions with an emotion scale tool. An Emotional Scale Tool (adapted from Plutchik to the needs of this project) was used to assess the range and degree of emotions passengers felt along different stages of their journey.

Plutchik identified eight primary emotions from which we have selected four to use in the survey: happiness, excitement, anger, anxiety. The intensity of emotion and the indicator color increase towards the center of the wheel and decrease outward.

METHODOLOGY

©2015 SITA.

EUROPE26%

MIDDLE EAST/AFRICA11%

ASIA

AMERICAS

31%

32%

Regions

55-74 YEARS

75+ YEARS

45-54 YEARS

Generation ZBaby Boomers

Generation X

Generation Y

18-25 YEARS

25-44 YEARS

RegionsAge Group

COVERAGE ACROSS REGIONS & DEMOGRAPHICS

61%

13%1%11%

14%

©2015 SITA.

EMOTION WHEEL

This Emotional Scale Tool (adapted from Plutchik el al.) was used to assess the range and degree of emotions passengers felt along different stages of their journey.

COVERAGE ACROSS REGIONS AND DEMOGRAPHICS

©2015 SITA.

EUROPE26%

MIDDLE EAST/AFRICA11%

ASIA

AMERICAS

31%

32%

Regions

55-74 YEARS

75+ YEARS

45-54 YEARS

Generation ZBaby Boomers

Generation X

Generation Y

18-25 YEARS

25-44 YEARS

RegionsAge Group

COVERAGE ACROSS REGIONS & DEMOGRAPHICS

61%

13%1%11%

14%

EMOTION WHEEL

Split by age group

Split by region

For further information, please contact sita by telephone or e-mail:

Americas+1 770 850 4500 info.amer@sita.aero

Asia Pacific+65 6545 3711 info.apac@sita.aero

Europe+41 22 747 6111 info.euro@sita.aero

Middle East, India & Africa+961 1 637 300 info.meia@sita.aero

Follow us on www.sita.aero/socialhub

SITA AT A GLANCE

The air transport industry is the most dynamic and exciting community on earth – and SITA is its heart.

Our vision is to be the chosen technology partner of the industry, a position we will attain through flawless customer service and a unique portfolio of IT and communications solutions that covers the industry’s every need 24/7.

We are the innovators of the industry. Our experts and developers keep it fuelled with a constant stream of ground-breaking products and solutions. We are the ones who see the potential in the latest technology and put it to work.

Our customers include airlines, airports, GDSs and governments. We work with around 430 air transport industry members and 2,800 customers in over 200 countries and territories.

We are open, energetic and committed. We work in collaboration with our partners and customers to ensure we are always delivering the most effective, most efficient solutions.

We own and operate the world’s most extensive communications network. It’s the vital asset that keeps the global air transport industry connected.

We are 100% owned by the air transport industry – a unique status that enables us to understand and respond to its needs better than anyone.

Our annual IT surveys for airlines, airports and passenger self-service are industry-renowned and the only ones of their kind.

We sponsor .aero, the top-level internet domain reserved exclusively for aviation.

In 2013, we had consolidated revenues of US$1.63 billion.

For further information, please visit www.sita.aero

© SITA 2015 All trademarks acknowledged. Specifications subject to change without prior notice. This literature provides outline information only and (unless specifically agreed to the contrary by SITA in writing) is not part of any order or contract.