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Exclusive: Price dictates airline choice, finds Mintel survey – 17 Aug 2007

Terminal at BAA StanstedPrice dominates leisure passengers’ choice of airline with convenience a secondary priority, according to a report on UK scheduled carriers by consumer analyst Mintel.


A survey of 25,000 adults who flew last year found 46% rated price the most important consideration, 22% considered the convenience of the airport and just 8% the convenience of their flight times.


The majority of holidaymakers see air travel as a means to an end, with only 4% making in-flight comfort a deciding factor in which carrier they chose. This suggests there is a limited market for airlines offering premium economy fares.


The report notes: “Consumers are fully aware that low-cost flights often warrant [flying at] a time that is not ideal.”


However, business travellers make their choice of airline differently. Price was still the dominant factor for 22% of those surveyed, but the convenience of the departure airport was most important for 28% – almost double the rate suggested by a similar survey in 2002.


A convenient flight time was the key consideration for 17% of corporate bookers and their company travel policy the determining factor for 8%.



“Consumers care more about the service they receive before and after a flight than during it.”
Airline executives may be surprised to learn their frequent flyer schemes appeared to influence just 2% of business customers, down from 4% in 2002.


The authors suggest airlines allow frequent flyer miles to benefit charitable schemes, be used to offset carbon emissions or be donated to environmental projects.


In-flight comfort appears to sway an even smaller proportion of passengers than loyalty programmes, with just 1% basing their decision on airline service compared. Clearly, a high level of service is no longer expected on short-haul flights and it appears passengers are not convinced of the differences between airlines flying long haul.


The report concludes: “Consumers care more about the service they receive before and after a flight than during it.”


It is no surprise to learn that one in two bookings with scheduled airlines are made online – 37% on the carriers’ websites and 12% through online agencies such as expedia.co.uk, according to a consumer survey in March this year.


However, although direct bookings account for 43% of the total, with 6% made by phone, the retail trade and tour operators still take the lion’s share when the 12% through online agents are included.


Traditional travel agents take 31% of scheduled air bookings (excluding those with low-cost carriers) and a further 14% are sold as part of a package holiday.


The report notes: “Holidays to long-haul destinations still tend to be booked at an agency as consumers require hand-holding.”



  • UK Scheduled Airlines is available from Mintel International Group, 18-19 Long Lane, London, price £1,500.
    Call 020 7606 4533 or go to mintel.com.

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