Fu­ture of News­pa­pers and Mag­a­zines in Flight

An In­dus­try Sur­vey and Trends Re­port

The Insider - - CONTENTS -

Ev­ery in­dus­try in the world has been im­pacted by the mas­sive tech­no­log­i­cal and so­cial changes that have oc­curred over the past decade. Mu­sic, travel, hospi­tal­ity, pub­lish­ing…they’re all, in their own way, be­ing rewrit­ten from the ground up as a re­sult.

In the case of air­lines, tech­nol­ogy has trans­formed them from a ser­vice that trans­ports trav­ellers from point A to point B, into one that can cre­ate an invit­ing and en­ter­tain­ing travel ex­pe­ri­ence, tai­lored to meet the needs and wants of each pas­sen­ger.

To ad­dress one as­pect of the on-board ex­pe­ri­ence (ac­cess to news­pa­pers and mag­a­zines), PressReader part­nered with APEX to sur­vey its mem­bers to gain in­sights into their plans. Re­spon­dents from premium car­ri­ers (one to three mil­lion flights per year) through to bud­get fare classes (less than 100,000 flights) par­tic­i­pated in the study. Here are some of the high­lights…

Op­por­tu­nity is knock­ing

If ever there was a time for the air­line in­dus­try to ag­gres­sively in­no­vate for a more prof­itable fu­ture, it is now. Ev­ery day, new op­por­tu­ni­ties are open­ing up to grow loy­alty with con­nected con­sumers by of­fer­ing a su­pe­rior cus­tomer ex­pe­ri­ence along ev­ery touch­point in the car­ri­er­pas­sen­ger value chain.

Most air­lines have al­ready in­sti­tuted loy­alty pro­grams be­cause the po­ten­tial as­sets gained can’t be ig­nored. And although loy­alty pro­gram suc­cess re­quires a large mem­ber­ship base, what’s more im­por­tant is the re­ten­tion and longevity of its mem­bers be­cause:

• It is 5-10 times less ex­pen­sive to re­tain a cus­tomer than to gain a new one;

• Loyal con­sumers buy 90% more of­ten, spend 60% more per pur­chase, de­liver three times the value an­nu­ally and are five times more likely to choose the brand in the fu­ture;

• Sat­is­fied cus­tomers will share their pos­i­tive brand ex­pe­ri­ence with nine oth­ers, while un­happy con­sumers will share their dis­plea­sure with 22;

• A 5% in­crease in cus­tomer re­ten­tion can in­crease prof­its by 25-95%.

Re­tain­ing loy­alty in the travel in­dus­try is a con­stant bat­tle in what is no longer a “low­est price wins” war.

Ac­cord­ing to Col­li­son Group, air­line fre­quent flyer mem­ber­ships have been on the de­cline for years. In 2015, For­rester re­ported that air­lines had the low­est level of loy­alty of all the ma­jor in­dus­tries. To­day, 53% of trav­el­ers do not have a fre­quent flyer mem­ber­ship — 9% fewer than in 2017.

In to­day’s Ex­pe­ri­en­tial Econ­omy, trav­el­ers value more than points that take them from point A to point B. They want value to ex­tend through­out their jour­ney, not just at book­ing. In this re­gard, air­lines have an en­vi­able and unique ad­van­tage of hav­ing an im­mer­sive and up-close-and-per­sonal con­nec­tion with cus­tomers that can last for hours. Very few other in­dus­tries have that long and un­in­ter­rupted op­por­tu­nity to woo their clients. Air­lines need to bet­ter cap­i­tal­ize on that by liv­ing and breath­ing a pas­sen­ger-first cul­ture through­out the en­tire cra­dle to grave value chain to max­i­mize re­ten­tion, es­pe­cially in the air.

Serv­ing the con­nected con­sumer on board

In this dig­i­tally de­pen­dent era, cus­tomers ex­pect to be con­nected at all times and their ex­pec­ta­tions are grow­ing. Ac­cord­ing to Zenith’s 2018 Me­dia Con­sump­tion Fore­cast re­port, peo­ple on av­er­age, will spend 479 min­utes a day con­sum­ing me­dia in 2018. In North Amer­ica that time in­creases by 33%.

It’s no won­der the de­mand for Wi-Fi and con­nec­tiv­ity is in­creas­ing ev­ery­where, whether it’s for email, brows­ing the in­ter­net, ac­cess­ing so­cial me­dia, stream­ing mu­sic, or down­load­ing me­dia (e.g. mag­a­zines, news­pa­pers, and movies).

In 2017, In­marsat re­ported that”

• 60% of pas­sen­gers be­lieve on-board Wi-Fi is a ne­ces­sity, not a lux­ury

• 61% con­sider it more im­por­tant than IFE

• 40% rank it as a top three driver of air­line choice

• When it comes to loy­alty, 44% say they would stop us­ing their pre­ferred air­line if its Wi-Fi was of poor qual­ity

Ac­cord­ing to SITA’s 2017 IT Trends Sur­vey, ap­prox­i­mately 1/3 of air­lines to­day op­er­ate con­nected air­crafts, with 66% ex­pect­ing to do so within the next three years. 45% of re­spon­dents be­lieve im­prov­ing the pas­sen­ger ex­pe­ri­ence is the pri­mary ben­e­fit.

So how can an air­line of­fer paid ser­vices that max­i­mize the po­ten­tial of re­tain­ing an air­line’s most valu­able cus­tomers with­out break­ing the bank? Read on…

On-board con­nec­tiv­ity on per­sonal de­vices

In 2013, The Fed­eral Aviation Ad­min­is­tra­tion (FAA) in con­junc­tion with the Fed­eral Com­mu­ni­ca­tions Com­mis­sion (FCC) re­laxed the us­age rules for per­sonal entertainment de­vices, driv­ing de­mand for “Bring Your Own De­vice” (BYOD) ser­vices by pas­sen­gers. Of the 9,000 pas­sen­gers sur­veyed by SITA, 46% of those who watched a movie on their most re­cent flight did so on their per­sonal de­vice. 65% said they would like to ac­cess IFE on their own de­vices in the fu­ture.

By Jan­uary 2018, ~90 air­lines had ei­ther al­ready in­stalled, or planned to in­stall, in-flight con­nec­tiv­ity so­lu­tions to ad­dress the in­creas­ing de­mand for BYOD and ac­cess to more mo­bile ser­vices.

This shift to BYOD has re­sulted in a de­clin­ing in­ter­est in tra­di­tional seat­back IFE sys­tems which add both weight and cost to an air­craft. A num­ber of car­ri­ers are al­ready be­gin­ning to re­move them from some of their fleets.

Mean­while they are in­vest­ing more in mo­bile ser­vices which are in high de­mand by to­day’s tech-savvy trav­ellers.

Cur­rent news con­sump­tion trends

Ac­cord­ing to Reuter’s 2017 Dig­i­tal News Re­port, the most pop­u­lar source of news is dig­i­tal, re­gard­less of age.

And while video is gain­ing in­ter­est on so­cial me­dia, 78% of peo­ple still pre­fer read­ing news in writ­ten form.

Main­stream me­dia brands that have a strong news le­gacy (e.g. The Wash­ing­ton Post, Forbes, The Globe and Mail, Le Monde, Newsweek, Bloomberg Busi­ness­week and The Guardian, just to name a few) are the main choice for hard core news. Dig­i­tal-na­tive brands (like Buz­zFeed) are mostly used as sec­ondary sources for softer news sub­jects.

The rapid growth in mo­bile and BYOD of­fers huge op­por­tu­ni­ties for me­dia, read­ers, and busi­nesses who pro­vide ac­cess to premium news to cus­tomers. In 2017, 85% of US adults read news on a mo­bile de­vice, up from 72% in 2016. And what’s in­ter­est­ing is that the growth was driven by older adults.

What does all this mean for in-flight me­dia?

The dig­i­tal rev­o­lu­tion has fu­eled mas­sive changes across busi­nesses, gov­ern­ments and so­ci­ety — changes that have in­verted the tra­di­tional power fun­nel that ex­isted be­tween busi­nesses and con­sumers through­out most of his­tory.

We are liv­ing in a new con­nected econ­omy where con­sumers hold the power and wield it like a sword, ready to hack in­sti­tu­tions off their fa­vorites list in a mo­bile minute if they don’t give them what they want.

Air­lines are not im­mune from this phe­nom­e­non and must con­tin­u­ally in­no­vate to en­sure they stay rel­e­vant for the rapidly-evolv­ing gen­er­a­tions of fly­ers.

In the news­pa­per and mag­a­zine world, that means re­think­ing how con­tent is sourced and dis­trib­uted to trav­el­ers, most of whom aren’t will­ing to pay for it.

The tra­di­tional ap­proach to serv­ing up printed me­dia was to of­fer a few news­pa­pers at the gate, a hand­ful of mag­a­zines and news­pa­pers in the lounge and a small col­lec­tion of pub­li­ca­tions on board for premium cab­ins.

But with to­day’s dis­cern­ing read­ers who want ac­cess to mul­ti­ple sources of me­dia it goes with­out say­ing, that the lim­ited printed pub­li­ca­tion ap­proach doesn’t cut it any­more. Not only does it not serve the needs of to­day’s news-hun­gry con­nected con­sumers, it’s adding un­nec­es­sary fuel costs with ev­ery flight.

Air­line ex­ec­u­tives haven’t quite fig­ured out how to thrive in this new econ­omy yet, but many are mak­ing some head­way with a fo­cus on ex­pe­ri­ence and the con­nected con­sumer’s val­ues and needs.

For ex­am­ple, PressReader is work­ing with air­lines like Cathay Pa­cific, Air Canada, Vir­gin Aus­tralia and oth­ers on a num­ber of in­no­va­tive ini­tia­tives de­signed to:

• Use premium con­tent to drive pos­i­tive brand ex­pe­ri­ences across nu­mer­ous cus­tomer touch­points

• In­te­grate qual­ity con­tent into their mar­ket­ing pipe­lines, in­clud­ing lounges, so­cial me­dia, email, ad­ver­tis­ing, loy­alty pro­grams, and cross-pro­mo­tional part­ner­ship with pub­lish­ers

• De­liver higher lev­els of per­son­al­iza­tion based on who cus­tomers are, where they live, where they travel and their me­dia in­ter­ests

Imag­ine the sav­ings if nar­row body air­craft were added to the equa­tion!

If you are in­ter­ested in learn­ing more about how to use premium news con­tent as an im­mer­sive mar­ket­ing tool to am­plify your brand with pas­sen­gers, let’s talk!

• 50% said that dig­i­tal ac­cess to lo­cal and in­ter­na­tional news­pa­pers on a pas­sen­ger’s own de­vice is hugely ben­e­fi­cial; 55% said the same thing about mag­a­zines• Per­sonal de­vice ac­cess was val­ued much higher than ac­cess through seat­back In-flight Entertainment (IFE)

• 76.9% of air­lines with less than 500,000 an­nual flights have al­ready, or plan to stop of­fer­ing print within 5 years• 83.3% of air­lines with less than 100,000 an­nual flights have al­ready, or plan to stop of­fer­ing print within 3-5 years

• 50% of re­spon­dents also be­lieved that pas­sen­gers would find dig­i­tal ac­cess to the air­line’s mag­a­zine ben­e­fi­cial.

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