Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Airlines - UK - September 2015

“Judging by the increase in aircraft orders over the past year, airlines are confident about the future of the market. However, they also realise that there will be some intense competition for customer acquisition in the form of price wars and customisable flight experiences. As a result, consumer data and mobile technology will play a key role in offering a stand-out service”
– Fergal McGivney, Travel and Technology Analyst

This report discusses the following key topics:

  • Airlines may need to beat online travel agents at their own game if they want to negate commission costs and drive direct bookings
  • Passenger data can be the key to delivering relevant ancillary services

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Scope of the report
      • Executive Summary

          • Market forecast
            • Types of flight taken
              • Figure 1: Types of flight taken, July 2015
            • Flight destinations
              • Figure 2: Destination flown to, July 2015
            • Types of airlines flown on
              • Figure 3: Types of airlines flown on, July 2015
              • Figure 4: Classes flown, July 2015
            • Flight bookings
              • Figure 5: How last flight was booked via the airline, July 2015
            • Consumers open to sharing location data
              • Figure 6: Willingness to share data, July 2015
            • Hyper-sensitive data in exchange for discounts, loyalty points and tailored in-flight services
              • Figure 7: What services people would be willing to share data* for, July 2015
            • Consumers open to adverts in exchange for free entertainment services
              • Figure 8: Attitudes towards flight services, July 2015
            • What we think
            • Issues and Insights

              • Airlines may need to beat online travel agents at their own game if they want to negate commission costs and drive direct bookings
                • The facts
                  • The implications
                    • Passenger data can be the key to delivering relevant ancillary services
                      • The facts
                        • The implications
                        • The Market – What You Need To Know

                          • Passenger uplift finally exceeds the pre-recession period
                            • Passenger uplift on track for growth in 2015 as Q1 sees growth
                              • easyJet outperforms British Airways and Ryanair
                                • Aircraft orders up
                                  • Strong competition from budget airlines affecting full-service offerings
                                    • Charter airlines lose out on their share of package bookings
                                      • Fuel prices drop but hedging curbs the benefit
                                        • Competition heightens among trains and planes to the Continent
                                        • Market Size and Forecast

                                            • 2015 set for strong growth
                                              • Growth expected over the next five years
                                                • Figure 9: Passengers uplifted at UK airports, 2010-20
                                                • Figure 10: Volume forecast of total passengers uplifted at UK airports, 2010-20
                                                • Figure 11: Volume forecast of international passengers uplifted at UK airports, 2010-20
                                                • Figure 12: Volume forecast of domestic passengers uplifted at UK airports, 2010-20
                                            • Segment Performance

                                              • Packages grow market share
                                                • Figure 13: Independent versus non-independent air travel bookings, 2010-14
                                                • Figure 14: Passengers uplifted at UK airports, scheduled versus non-scheduled, 2010-14
                                              • Low-cost carriers outpace full-service airlines
                                                  • Figure 15: Total passengers uplifted worldwide by UK airlines, low-cost* and full-service**, 2010-14
                                                • Holiday trips grow as business travel remains flat
                                                  • Figure 16: Volume of UK residents’ air trips abroad, by purpose, 2010-14
                                              • Market Drivers

                                                • Air travel growth contrasts with declining sea and tunnel trips
                                                  • Figure 17: Overseas visits by air, sea and tunnel, by volume, 2010-14
                                                • Airline punctuality drops across the UK
                                                  • Eurostar to grow market share?
                                                    • Heathrow dominates passenger uplifts
                                                      • Figure 18: Passengers uplifted at UK airports, by airport, 2010-14
                                                    • Decision on Heathrow’s third runway set for autumn
                                                      • Jet fuel drops as oil prices remain low
                                                        • Figure 19: Jet fuel prices, Pound Sterling per gallon, July 2010-July 2015
                                                      • UK to scrap air passenger duty?
                                                        • Consumer confidence up on back of improved jobs and pay data
                                                          • Figure 20: Consumer confidence index, October 2014-July 2015
                                                        • Beacon technology to enhance service
                                                          • High UK rail fares could benefit domestic flights
                                                            • Figure 21: UK rail fares index, 2004-15
                                                          • UK-based budget carrier to finally offer consumers transatlantic service?
                                                            • Lufthansa imposes a €16 fee on online travel agent bookings
                                                              • Costly move to eschew the GDS or ancillary revenue generator?
                                                              • Key Players – What You Need To Know

                                                                • Innovations helping with efficiency
                                                                  • Passenger growth for easyJet and BA outstrips Ryanair’s
                                                                    • Airlines increase aircraft orders
                                                                      • BA and Virgin stand above other brands
                                                                        • easyJet and Ryanair are the most used brands
                                                                          • Flybe and Monarch suffer from weak overall image
                                                                          • Launch Activity and Innovation

                                                                            • Solar-powered planes
                                                                              • Boeing says folding wing tip is in development for its upcoming 777X
                                                                                • easyJet pioneering drones to curb delays
                                                                                  • KLM to provide tailored responses to customers’ questions online
                                                                                    • Soarigami seeks to end armrest battles
                                                                                      • Airlines offer iPads to passengers
                                                                                        • Air New Zealand allows parents to track unaccompanied minors
                                                                                        • Market Share

                                                                                          • Passenger growth for easyJet and BA outstrips Ryanair’s
                                                                                            • Figure 22: Top 10 UK-based airlines, by passengers uplifted globally, 2010-14
                                                                                          • Airlines increase aircraft orders
                                                                                              • Figure 23: Number of active aircraft, by airline, 2012-15
                                                                                          • Brand Research

                                                                                              • Brand map
                                                                                                • Figure 24: Attitudes towards and usage of selected airline brands, June 2015
                                                                                              • Key brand metrics
                                                                                                • Figure 25: Key metrics for selected airline brands, June 2015
                                                                                              • Brand attitudes: Virgin Atlantic and British Airways defined by quality, easyJet and Ryanair by value
                                                                                                • Figure 26: Attitudes, by airline brand, June 2015
                                                                                              • Brand personality: easyJet and Flybe routes create accessibility
                                                                                                • Figure 27: Brand personality – Macro image, June 2015
                                                                                              • Ryanair has closest association to negative traits
                                                                                                • Figure 28: Brand personality – Micro image, June 2015
                                                                                              • Brand analysis
                                                                                                • Virgin Atlantic’s long-haul destinations create a certain amount of glamour
                                                                                                  • Figure 29: User profile of Virgin Atlantic, June 2015
                                                                                                • British Airways has strong advantage on trust
                                                                                                  • Figure 30: User profile of British Airways, June 2015
                                                                                                • easyJet has advantage over Ryanair on experience
                                                                                                  • Figure 31: User profile of easyJet, June 2015
                                                                                                • Flybe’s regional routes provide point of difference but limit usage
                                                                                                  • Figure 32: User profile of Flybe, June 2015
                                                                                                • Monarch lacks same strength of image as other brands focusing on low cost
                                                                                                  • Figure 33: User profile of Monarch, June 2015
                                                                                                • Ryanair remains heavily reliant on low prices
                                                                                                  • Figure 34: User profile of Ryanair, June 2015
                                                                                              • The Consumer – What You Need To Know

                                                                                                • Business market to remain flat…
                                                                                                  • …but business travellers still present opportunities
                                                                                                    • Airlines should focus their attention on tech-savvy consumers
                                                                                                      • Europe is a key battleground
                                                                                                        • A market for more domestic flights
                                                                                                          • Budget carriers entering the long-haul market?
                                                                                                            • Drive to increase direct bookings sees the introduction of fees by Lufthansa
                                                                                                              • Most consumers are direct bookers
                                                                                                                • Passengers open to sharing location data
                                                                                                                  • Hyper-sensitive data in exchange for discounts, loyalty points towards free services and tailored in-flight services
                                                                                                                  • Types of Flight Taken

                                                                                                                    • Half of consumers have flown in the past year
                                                                                                                      • Millennials and men are most likely to fly
                                                                                                                        • Londoners seeking an escape
                                                                                                                          • Tech-savvy flyers key influencers in the adoption of new technology services
                                                                                                                              • Figure 35: Types of flight taken, July 2015
                                                                                                                          • Flight Destinations

                                                                                                                            • Europe is a key battleground
                                                                                                                              • Londoners most likely to fly long-haul
                                                                                                                                • Domestic flyers predominantly male
                                                                                                                                  • Figure 36: Destination flown to, July 2015
                                                                                                                              • Types of Airlines Flown With

                                                                                                                                • More than half have flown with a budget carrier in the past year
                                                                                                                                  • Charter flights’ popularity waning
                                                                                                                                    • Budget services appealing even to the financially well off
                                                                                                                                      • Private market
                                                                                                                                        • Figure 37: Types of airlines flown on, July 2015
                                                                                                                                      • Consumers want to economise on flights
                                                                                                                                        • Figure 38: Classes flown, July 2015
                                                                                                                                    • Flight Bookings

                                                                                                                                      • Airlines looking to boost direct bookings share further
                                                                                                                                        • Figure 39: How last flight was booked, July 2015
                                                                                                                                    • Flight Bookings via Airlines

                                                                                                                                      • Most book via the airline’s website
                                                                                                                                        • Facilitating spontaneous bookings
                                                                                                                                          • Fewer clicks is best for websites
                                                                                                                                            • Partnering with venues can increase app engagement
                                                                                                                                                • Figure 40: How last flight was booked via the airline, July 2015
                                                                                                                                            • Flight Bookings via Travel Agents

                                                                                                                                              • Package holidays main reason flight was booked via travel agent
                                                                                                                                                • Can airlines increase direct bookings by beating OTAs at their own game?
                                                                                                                                                  • Figure 41: How last flight was booked via the travel agent, July 2015
                                                                                                                                              • Data Sharing Attitudes

                                                                                                                                                • Consumers most keen to share basic personal data
                                                                                                                                                  • What is the most valuable data for airlines?
                                                                                                                                                    • Figure 42: Willingness to share data, overview, July 2015
                                                                                                                                                  • Hyper-sensitive data in exchange for discounts, loyalty points towards free services and tailored in-flight services
                                                                                                                                                    • Social media’s role
                                                                                                                                                      • Figure 43: Willingness to share data, detailed breakdown, July 2015
                                                                                                                                                    • Services that will entice users to share valuable data
                                                                                                                                                      • Figure 44: What services people would be willing to share data* for, July 2015
                                                                                                                                                  • Attitudes towards Flight Services

                                                                                                                                                      • Consumers open to adverts in exchange for free entertainment services
                                                                                                                                                        • Luggage tracker popular among young women
                                                                                                                                                          • Demand for pre-order services via mobile app
                                                                                                                                                            • Figure 45: Attitudes towards flight services, July 2015
                                                                                                                                                        • CHAID Analysis – Attitudes towards Flight Services

                                                                                                                                                          • Methodology
                                                                                                                                                            • Figure 46: Target groups based on attitudes towards airlines – CHAID – Tree output, July 2015
                                                                                                                                                            • Figure 47: Target groups based on attitudes towards airlines – CHAID – Table output, July 2015
                                                                                                                                                        • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                          • Data sources
                                                                                                                                                            • Abbreviations
                                                                                                                                                              • Definitions

                                                                                                                                                              Companies Covered

                                                                                                                                                              • British Airways Holidays
                                                                                                                                                              • Ryanair Holdings plc

                                                                                                                                                              Airlines - UK - September 2015

                                                                                                                                                              £1,995.00 (Excl.Tax)