Page 13 - AAA JANUARY - FEBRUARY 2017 Online Magazine

FEATURE AIRLINE FORECAST

already account for 29 per cent of all flight
expenditures for business travel, a larger
proportion than in any other market globally.
And the percentage is growing rapidly with
business travel expenditures in Asia on LCCs
growing 11 percent annually between 2012
and 2015, compared to 6 percent a year in
North America in the same period. In a dire
warning to traditional airlines McKinsey
found that 41 percent of ABTs said they
were willing or very willing to fly LCCs. And
those LCCs are getting better and better by
the day. New upmarket operators such as
KL based Malido and Indonesia’s Batik Air –
both part of the massive Lion Air group are
offering a classier experience than the basic
LCC. Countering that, Singapore Airlines has
finally adopted Premium Economy to raise
its offering matching Cathay Pacific Airways.
Both airlines are finding that Premium
Economy offers both options for the budget
minded business traveler and an upgrade for
the economy traveler. All in all, there are a
host of conflicting factors for airline boards
to consider as they try to map strategy and
fleet plans and it can be argued that times
have never been as challenging.

TOP: Asian business
travellers are more likely
than business travellers in
other regions to combine
their business and leisure
“Stereotypical Suits” place the utmost travel is susceptible to the same disruptive travel
importance on convenience and little else forces as the leisure market. For instance, LEFT: Airline customers are
while “Service Seekers” look for distinctive the survey found that online and mobile expecting greater amenities
travel experiences and are willing to pay channels are, on average, 28 per cent more and conveniences and are
more personally for additional services. “Belt popular than traditional channels as a means willing to pay for them too
Tighteners” are the most value-conscious, to research and book travel. McKinsey said OPPOSITE PAGE: China,
spending time to save money, rather than that mobile channels, in particular, seem India, Indonesia, Japan,
paying extra to boost convenience and poised for growth, with respondents’ desire and Singapore together
“Points Maximisers” want the perks by trying to use mobile tools to book travel three represent 68 percent of
to maximise their rewards from preferred times higher than their actual use. It also Asia’s population and more
than 78 per cent of the
travel providers. The final finding and found that LCCs are capturing a greater region’s expenditures for
possibly the most serious is that business share of business travel. In Asia, they business travel
WWW.GBP.COM.SG/AAA JANUARY / FEBRUARY 2017 ASIAN AIRLINES & AEROSPACE 13