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NSR report says IFC service quality issues are critical

A passenger uses Lufthansa Systems BoardConnect.

A passenger uses Lufthansa Systems BoardConnect.

NSR’s latest Aeronautical Satcom Markets, report forecasts in-flight connectivity will generate $37 billion by the end of 2027, with quality of service (QoS) and measuring the passenger experience as critical issues for the market to develop.

In the process, NSR says it expects airlines to take more control over the customer-facing environment and dictate terms for smarter suites of services in what is still an underperforming market.

Claude Rousseau, NSR Research Director and report author, said: “More airlines are deploying IFC with an eye on measuring deeper down the transmission chain to ascertain value of service to passengers with a set of very refined and key performance indicators.

“Furthermore, IFC is becoming an enabler for what is often identified as the smart plane, but in reality is a more holistic approach to connectivity across fleets for different types of service for various classes of end-users.”

NSR forecasts $3.8 billion in annual retail revenues will be generated from commercial passenger markets by the end of the next decade.

To get there, it says airlines will play a central role in the development of the market; however, with more than 200 airlines that could offer connectivity on their flights, the ramp-up is significant.

But with service providers struggling to find the right balance between services and profits, the need for more consolidation in a market too crowded today is more evident than ever.

Install rates are also lagging while the industry searches for the right business model.  Additionally, a gap still exists to catch up with issues ranging from quality, speed, affordability, ease of connection across fleets for both passengers and crew, Wi-Fi pricing strategies, all the way to providing more IFC in loyalty programs.

NSR adds that with more tools than ever before coming to the market, such as higher performing satellites, flat panel antennas using lighter material, and capacity management tools as airlines show record profits,  the prospects to build a sustainable ‘experience’ around a full and compelling suite of smart IFC services are huge.

It says this year will be crucial as revenues for IFC are expected to grow by more than 40%. A more digital environment for airlines and communications habits of travelers will set the stage for the market as it meets the demand from passengers and crew alike for a seamless and high-quality in-flight connectivity experience.

About the Report
NSR says its Aeronautical Satcom Markets, 6th Edition study relies on the longest running, most in-depth analysis and forecasts of aeronautical satellite and air-to-ground connectivity markets for commercial aircraft.  See www.nsr.com

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NSR report says IFC service quality issues are critical was last modified: September 10th, 2018 by Steve Nichols
Filed in: Commercial Tags: ,

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