Loyal passengers and ancillary revenue. The benefits of connectivity and infotainment for transport operators

Jan Kolar, CEO, Passengera
Jan Kolar, CEO, <a href='https://www.passengera.com/' rel='nofollow' target='_blank' style='color:blue !important'>Passengera</a>

Jan Kolar, CEO, Passengera

We live in the era of the connectivity revolution, a phenomena dated back to 2007 with the drop of the first iPhone, which drastically changed consumer's behavior making smartphones the biggest driver behind this revolution.

Nowadays, ordinary consumers expect internet access everywhere making mobile internet a mass market phenomena. At the same time, they are also more spoiled on the customer experience they are offered, expecting brands to provide them with a multi-channel journey to ease up their purchase experience.

As ordinary customers are also passengers, this behavioral shift is reflected on passenger's expectations onboard - creating room for new strategies and revenue streams for transport operators.

Offering an on board high quality broadband as one of the benefits of transport operators is practically inevitable: hosting a quality connectivity solution creates an occasion for potential passengers to choose a transport operator A over an operator B. Because being online is essential, not only for business travellers but also for ordinary passengers. 

Making such a service available is something that might be perceived as just a bonus, but in reality it is of key importance during the decision making process and the loyalty of the customer to a certain company over the time.

But connectivity is not the only benefit to improve passenger experience onboard. 

A great infotainment platform improves communication between company and passenger: with an accurate digital communication strategy transport operators have the chance to care for customers from the ground to their final destination. 

It's a business' task to create a valid strategy to enhance the end-to-end journey in relation to the passenger's touch-points, with features that can range from a pop-up with their ticket, to sharing information on departure time, journey overview or delays, clear communication of security measures, onboard pre-ordering services or even targeted advertisement.

And the latter, targeted advertisement, is of particular importance: in an industry where the competition on ticket prices is strong, companies should be considering activating new monetisation channels. 

Especially in current times, when transport operators are facing a significant drop in revenue due to the pandemic, it is essential to focus on business strategies to create new ancillary revenue streams and ways to improve “Passenger x Km” revenue, particularly with economy class traveller. 

The upside of introducing onboard connectivity allows advertising to be hyper-targeted (operators have data on passengers and know in which class they are travelling) on a highly captive audience (Passengers can spend anytime from 1 up to 20 hours on board looking to be entertained or/and make the best out of their time).

A functional connectivity can then create additional valuable data which comes with the chance of an even more personalised passenger experience. 

In conclusion, transport operators in identifying their business strategies should pay particular attention to the technologies, which will allow them to improve their passenger care, consolidate relationships with passengers and be more attractive to potential customers, while making room for new revenue streams and the creation of an overall more “connected” business.