Airlines to ‘make billions’ from wifi
Airlines that provide good quality, reliable wifi could make an extra $4 per passenger.
While that doesn’t sound a huge amount, collectively it could generate $30 billion for airlines by 2035, according to a study commissioned by satellite communications provider Inmarsat.
That sum will likely come from connectivity access charges, online shopping, advertising and paid-for content like on-demand video streaming.
"We will see innovative deals struck, partnerships formed and business models fundamentally changed," said report author Alexander Grous of the London School of Economics.
The ‘Sky High Economics’ study is the first ever to focus solely on the economic impact of in-flight broadband.
"Globally, if airlines can provide a reliable broadband connection, it will be the catalyst for rolling out more creative advertising, content and e-commerce packages," said Grous.
"Broadband enabled revenue has the potential to shape a whole new market and it’s something airlines need to be planning for now."
Airlines are forecast to bring in about $1 billion in revenue next year from wifi charges.
Only 53 carriers currently offer broadband connectivity.
The report calls out the ‘variable quality, with patchy coverage, slow speeds and low data limits’ experienced by passengers at the moment.
However those issues are slowly being addressed by next generation satellite based tech.
By 2035, it is likely that in-flight connectivity will be ubiquitous across the world," the report said.
Asia is expected to be the big growth market~and will become a $10 billion industry.
In the US, 80% of domestic airlines have some form of in-flight connectivity, which is far ahead of Europe’s 20%, which has been stymied by overbearing regulatory issues, Inmarsat said.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airlines suspend Madagascar services following unrest and army revolt
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airbnb eyes a loyalty program but details remain under wraps
Air Mauritius reduces frequencies to Europe and Asia for the holiday season