866-997-4948(US-Canada Toll Free)

AIRLINES - UK - AUGUST 2018

Published By :

Mintel

Published Date : Aug 2018

Category :

Travel Services

No. of Pages : N/A

Airlines face some challenging times over the next few years as Brexit approaches and fuel costs rise. While businesses are cutting back on travel, consumers are still hungry for holidays. However, they will be keeping an eye on spending as the Pound remains weak. Airlines that help consumers manage their spending will stand out from the crowd.
Table of contents
OVERVIEW
What you need to know
Scope of this Report
EXECUTIVE SUMMARY
The market
Near-term outlook is bright but airlines face uncertainty going forwards
Figure 1: International passenger numbers uplifted at UK airports, 2013-23
Figure 2: Domestic passenger numbers uplifted from UK airports, 2013-23
Companies and brands
Brand research; Norwegian may need to boost awareness
Figure 3: Key metrics for selected brands, June 2018
Figure 4: Top 10 UK-based* airlines, by passenger numbers uplifted globally, 2017
The consumer
Proportion of UK consumers taking flights remains flat
Figure 5: Flights taken, June 2018
Consumers may cut back on long-haul travel
Figure 6: Flight length, June 2018
Budget versus full-service airlines
Figure 7: Types of airlines flown with, June 2018
The growth of premium economy
Figure 8: Types of class flown, June 2018
Attitudes towards paying for on-board food and drink
Figure 9: Types of class(es) flown, June 2018
Boosting food and drink bookings using a pre-order discounted app
Figure 10: Attitudes towards buying pre-ordering food via an app, June 2018
Smartphone usage on the rise
Figure 11: smartphone bookings for flights, June 2018
Passengers are most willing to pay for legroom, Wi-Fi, and seat reservation
Figure 12: Paying for on-board services, June 2018
What we think
ISSUES AND INSIGHTS
Opportunities to develop on-board catering
The facts
The implications
The rise in smartphone bookings is down to a mobile-first approach
The facts
The implications
THE MARKET WHAT YOU NEED TO KNOW
Passenger uplift grew substantially over the past five years
Holiday volume finally passes the 45.5 million mark
Price will be an even more important driver in 2018
Slowdown in international passenger uplift forecast over the next five years
Wages have begun to grow faster than inflation
Rising fuel costs will pose a problem for airlines over the next few years
The EUs Open Skies Agreement must be addressed in the Brexit negotiations
MARKET SIZE AND FORECAST
Near-term outlook is bright but airlines face uncertainty going forwards
Holiday intentions remain robust but Open Skies Agreement is crucial to market performance
Figure 13: Passenger numbers uplifted at UK airports, 2013-23
Figure 14: International passenger numbers uplifted at UK airports, 2013-23
Figure 15: Domestic passenger numbers uplifted from UK airports, 2013-23
Figure 16: Total passenger numbers uplifted at UK airports, 2013-23
Forecast methodology
MARKET SEGMENTATION
Air travel continues to increase its market share
Figure 17: Overseas trips taken by UK residents, by mode of transport, 2015-17
Overseas business travel hit by cut backs
Figure 18: Purpose of overseas trips, by air, 2016 and 2017
Fall in flights to the US
Figure 19: Top 10 countries visited by UK residents, by air travel, 2016 and 2017
MARKET DRIVERS
The weak Pound is making trips abroad more expensive
Figure 20: Pound sterling versus euro and US dollar, June 2016-18
Rising fuel costs putting pressure on airlines operational costs
Figure 21: Europe Brent Spot Price FOB* (Dollars per Barrel), July 2013-May 2018
Airlines turn to surcharges for flights booked via GDS
Brexit; the government must address the EUs Open Skies Agreement
Brexit; airlines could face problems over ownership
Brexit; denied Boarding Regulation could be called into question
Consumer confidence on the increase
Figure 22: Trends in how respondents would describe their financial situation, February 2009-June 2018
Figure 23: Trends in how respondents would describe their financial situation, by age, June 2018
Figure 24: Trends in consumer sentiment for the coming year, June 2018
COMPANIES AND BRANDS WHAT YOU NEED TO KNOW
The big two budget carriers continue to see strong growth
IAG bids for low-cost long-haul Norwegian
Brand research; Norwegian could benefit from boosting awareness
Brand research; Jet2 has impressive experience ratings
Lumo uses machine learning to predict flight destructions
British Airways launch new seating plan
Ryanair cuts adspend to focus on customer service
MARKET SHARE
The big two budget carriers continue to see strong growth
Figure 25: Top 10 UK-based* airlines, by passenger numbers uplifted globally, 2011-17
Figure 26: Top 10 companies in terms of passengers licensed under ATOL protection, 2018
IAG looking to acquire low-cost long-haul carrier Norwegian
Struggling Monarch collapses
BRAND RESEARCH
Figure 27: Attitudes towards and usage of selected brands, June 2018
Key brand metrics
Figure 28: Key metrics for selected brands, June 2018
Brand attitudes: British Airways is regarded as highly trustworthy
Figure 29: Attitudes, by brand, June 2018
Brand personality: consumers see Virgin Atlantic and British Airways as exclusive
Figure 30: Brand personality Macro image, June 2018
easyJet seen as basic but functional
Figure 31: Brand personality Micro image, June 2018
Brand analysis
Virgin Atlantic achieves the highest experience rating
Figure 32: User profile of Virgin Atlantic, June 2018
British Airways remains the UKs favourite airline brand
Figure 33: User profile of British Airways, June 2018
Jet2 has an impressive experience rating
Figure 34: User profile of Jet2, June 2018
easyJet is perceived to be better value than Ryanair
Figure 35: User profile of easyJet, June 2018
Norwegian needs to boost awareness
Figure 36: User profile of Norwegian, June 2018
Ryanairs reputation continues to struggle but its not hurting sales
Figure 37: User profile of Ryanair, June 2018
LAUNCH ACTIVITY AND INNOVATION
Qantas plans to launch direct flights from London to Sydney by 2020
Figure 38: The Boeing 787 Dreamliner
British Airways launches new seating plan
JetBlue launches Private Jet services for the masses
British Airways adds Santiago and Washington DC routes
Lumo uses machine learning to predict flight disruptions
Figure 39: Lumos flight prediction tool
Flio helps travellers navigate airports
Figure 40: The Flio app offers airport maps and discounts amongst other services
ADVERTISING AND MARKETING ACTIVITY
Ryanair plans to cut adspend to focus on customer service
Figure 41: Total above-the line, online display and direct mail advertising expenditure on ads, 2014-17
Nielsen Ad Intel coverage
THE CONSUMER WHAT YOU NEED TO KNOW
The proportion of UK consumers taking flights remains flat
Consumers could cut back on long-haul flights
Budget carriers dominate over full-service
Nearly a fifth of passengers flew premium economy in the past year
Airlines are considering unbundling fares
Smartphone usage on the rise
Passengers most willing to pay for legroom, Wi-Fi, and seat reservations
FLIGHTS TAKEN
Proportion of UK consumers taking flights remains flat
Figure 42: Flights taken, June 2018
Business trips expected to decline in 2018
London could be boosted by expansion of third runway
Encouraging visits to friends and relatives
Figure 43: Top 10 nations with citizens living in the UK, 2015
LENGTH OF FLIGHT AND CLASSES FLOWN
Consumers may cut back on long-haul travel
Figure 44: Flight length, June 2018
Budget versus full-service airlines
Figure 45: Types of airlines flown, June 2018
Charter airlines primarily favoured by older consumers
Affluent parents can be key targets for premium economy
Figure 46: Types of class flown, June 2018
FOOD SERVICES ON FLIGHTS
Attitudes towards paying for aboard food and drink
Figure 47: On-board food and drink preferences, June 2018
Boosting food and drink bookings using a pre-order discounted app
Figure 48: Attitudes towards pre-ordering food via an app, June 2018
Short-haul; families are key targets for on-board food and drink on short-haul flights
Long-haul; age and gender bias for self-catering on flights
Full-service carriers recognise the value of free food and drink
Figure 49: Providing free food, budget versus full-service airlines, June 2018
Figure 50: Important factors for purchasing food, June 2018
CONSUMER BEHAVIOURS RELATED TO AIRLINES
Smartphone usage on the rise
Figure 51: Behaviours related to flights, June 2018
The rise in smartphone bookings is down to a mobile-first approach
Responsive Web Design (RWD)
Progressive advancement
Passengers are most willing to pay for legroom, Wi-Fi, and seat reservation
Figure 52: Paying for on-board services, June 2018
Distinct age bias when it comes to stopovers
Figure 53: Choosing direct flights versus stopovers, June 2018
Figure 54: Choosing airports further away from destination, June 2018
Young parents are key targets for loyalty schemes
Figure 55: Target group for airline loyalty schemes CHAID Tree output, May 2018
APPENDIX DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
CHAID analysis methodology
Figure 56: Target groups based on statements about airlines CHAID Table output, May 2018
APPENDIX MARKET SIZE AND FORECAST
Forecast methodology
Figure 57: Best- and worst-case forecast for international UK passenger uplift, 2018-23
Figure 58: Best- and worst-case forecast for domestic UK passenger uplift, 2018-23
Figure 59: Best- and worst-case forecast for total UK passenger uplift, 2018-23

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *