In flight messaging tools will soon be an essential component of serving business travelers, and airlines will ultimately be forced to improve cabin data services in order to retain business customers, according to a soon-to-be-released study from Freesky Research.
"The In Flight Productivity market is developing very differently from the In Flight Entertainment market that has preceded it," according to David Gross, author of the report. "Unlike seatback TVs, and even in flight audio, which many major carriers have decided are not worth copying, large airlines will feel pressure on one side from low cost carriers, many of which are developing text and e-mail services, and on the other side from large business jet owners, many of which already offer their employees Internet access on board company planes. Text messaging, e-mail, and other productivity applications will eventually become as important to serving high yield customers as lie-flat beds in first class, and elite status benefits for frequent fliers."
The in flight connectivity market is also likely to develop new pricing models beyond the often-referenced $10 per flight. Data plans that can be prepaid with frequent flier miles, bundled with upgrade certificates, and offered as annual subscriptions, are just some of the alternative mechanisms airlines might use to retain business passengers and other high margin travelers.
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