Panasonic Avionics: Airlines shifting to duration or service type pricing for cabin connectivity

    Panasonic Avionics reported (03-Aug-2021) the airline industry is moving from a connectivity charging model based on data usage towards retail models that make it easier for the passenger to quickly understand how much online access they really want. Structuring connectivity pricing and packages based on duration or by service type make packages easier to understand and gives passengers a sense of the value they are getting for the service, making them less sensitive to pricing overall. Panasonic Avionics also reported the commoditisation of connectivity services on the ground means some passengers may expect inflight connectivity services to be free to some extent. To respond to this market shift, airlines are increasingly offering limited free of charge (FoC) services, typically choosing from the following approaches:

    • Offering FoC services to premium customers in a voucher form;
    • Giving all passengers FoC messaging services and charging for the other services;
    • Mixing free and paid services depending on cabin class or loyalty status. [more – original PR]
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