Aviation: Sabre Looks at Regional Differences in Ancillary Purchases

New research from Sabre has found that travelers would spend up to one hundred dollars to make their travel a little more “about me”.

The results show that 80% of travelers purchased air extras on their last trip, spending an average of $62. When asked if they would spend more to personalize their trip, the answer was “yes” – up to $99 if it improved their travel experience.

When asked what they would be most likely to spend money on, the most desired ancillaries were cabin class upgrades, on-board food and beverage and preferred seating and extra leg room – all at 11%. This was followed by in-flight wi-fi (9%) and extra checked baggage 9%).

The survey also found differences between what people from different regions would spend on extras.

The popularity of each ancillary varied between travelers from each region, with North Americans and Europeans choosing preferred seating and extra leg room; Latin Americans opting for on-board wi-fi, and Asia Pacific travelers selecting extra checked luggage. For travelers from Africa and the Middle East, on-board food and beverage, and fast track security respectively topped their pick.

“It’s clear that while there are regional differences in ancillary preferences, 80% of all travelers spend on air extras, representing a significant revenue opportunity for airlines,” said Dino Gelmetti, vice president EMEA, Airline Solutions, Sabre. “Airlines know what their travelers want based on the data they have of past purchases. Yet so much of this data remains unused today. However, by leveraging the latest technology, airlines can unlock this data and show they know their travelers by offering the right products at the right time and tailoring a personalized experience that will improve customer loyalty and generate much needed revenue.”

While technology is preferred by most travelers to plan and book travel, human interaction still plays a significant role in some countries. In Latin America, almost half (48%) prefer the help of a consultant to plan and book travel, compared to around a third of travelers from other regions – 37% in the Middle East, 36% in Asia, 35% in Africa and North America, and 33% in Europe.

The study also revealed differences in the time it takes travelers around the world to book trips. African travelers were the fastest planners, with 33% saying they spent less than a day planning their last trip, compared to just 12% of travelers from Asia Pacific. At the other end of the scale, American travelers were the most likely to plan in advance with nine% taking longer than a month, compared to just three% of travelers from Africa and the Middle East.

“Both airlines and travel agencies have a role to play in providing travelers with a complete booking service that combines the convenience of technology with the power of human interaction,” said Shelly Terry, vice president of travel product solutions, Sabre Travel Network. “Airlines can maximise revenue by leveraging the expertise of travel agencies and ensuring their inventories are conveniently available to passengers through both direct and indirect channels, giving people the choice and freedom to book travel the way it suits them.”

Methodology

The online survey of 1,500 travelers from 20 countries in six regions was fielded in September and October 2016. Regions were N. America (Canada, United States); Europe (France, Germany, Italy, Poland, United Kingdom); Latin America (Brazil, Mexico, Argentina); Asia Pacific (China, India, Indonesia, South Korea); Africa (Egypt, South Africa, Nigeria); and the Middle East (Turkey, United Arab Emirates, Israel). Respondents qualified if they had traveled by plane within the past two years.

Videos from/about Sabre include: Sabre Airline Solutions - Exclusive HD Video Interview with Dasha Kuksenko, Philippine Airlines First to Use Sabre's AirVision Commercial Analytics. Exclusive HD videos (9) from Sabre's Travel Technology Exchange (TTX) APAC 2016 including interviews with: Wade Jones, Senior Vice President of Marketing and Strategy at Sabre Travel Network, Roshan Mendis, Senior Vice President - Sabre Asia Pacific, Anupam Bokil, Vice President of Product and Technology - Sabre Travel Network Asia Pacific, John Samuel, Senior Vice President of Design at Sabre, Alex Tang, CEO of XCOR Space Expeditions Asia and MD of JW Marriott Hotel Beijing and The Ritz-Carlton, Beijing as well as Three Presentations from Sabre's Travel Technology Exchange (TTX) 2016 in Beijing and Brief Introduction to Sabre Airline Solutions by Greg Gilchrist. Plus we have many more: HD Videos.

See other recent news regarding: Sabre, Travel Trends, Aviation