Financial News

Behavioural Science Research Reveals Key Spending Drivers for Airline Passengers in 2025

By: Newsfile
  • Extensive new research has identified the key behavioural patterns that will shape passenger spending trends on major airlines in 2025 and beyond
  • Feeling valued, moments of pleasure and novelty were the most important overarching motivations influencing passenger's airline choice
  • Trust and reliability were seen as less important and had the least bearing on passenger's choice and spend
  • Expert warns that airlines must embrace a new era in air travel design and customer experience if they are to survive and prosper

London, United Kingdom--(Newsfile Corp. - October 22, 2024) - A new in-depth study, conducted by London-based brand experience studio NewTerritory, has uncovered key passenger behavioural patterns that will shape airline spending trends in 2025 and beyond, with feeling valued, moments of pleasure, and novelty emerging as top factors influencing passengers' choice of airline.

The research, grounded in behavioural science, surveyed over 250 passengers who travelled in the past 12 months across five major international airlines. During over 400 hours of quantitative research the NewTerritory team engaged with participants, analysing 16* defined attributes across four groups, to identify how airline brands can establish repeat purchasing behaviour amongst their customer base.

Feeling valued was found to have one of the strongest links to passenger spending behaviour, with 73 per cent of respondents believing empathy to be the most meaningful way for brands to achieve this - specifically, airlines understanding and addressing the negative impacts of the journey, such as fatigue, jet lag and the emotional toll of travel on passenger wellbeing.

Furthermore, 49 per cent of passengers felt that personalised moments were also influential in their decision making, citing examples like a personal greeting from the pilot, a customised note from the crew, or a tailored menu catering to dietary preferences as important in influencing who they choose to fly with.

Brands finding ways to make the journey more pleasurable for passengers has also emerged as another key driver behind passenger choice, with 66 per cent of respondents finding that this can be achieved through unexpected moments of delight during a monotonous flight. While 55 per cent linked how differentiated the overall experience feels, as having an influence on their decision making.

The study's most striking discovery is the diminishing impact of traditional trust and reliability factors on spending behaviour. Contrary to long-standing industry assumptions, trust and reliability are much less likely to influence repeat purchase when it comes to the major airlines.

Former head of design for Virgin and NewTerritory founder, Luke Miles, is calling for airlines to embrace a new era in air travel design and customer experience, warning that this is essential if they are to survive and prosper in 2025 and beyond.

"Airline carriers must adapt their in-flight experience to keep pace with what customers are now demanding - a differentiated, human-centred journey that makes them feel like a valued customer.

"Carriers that want to win in the future need to put their passengers' emotions and feelings at the heart of their business model. The ability to make passengers feel genuinely valued, will make or break major airlines in the future.

"We need to think of air travel as a hospitality experience - much like we think of high-end hotels. Just as we dine and sleep in a hotel, passengers expect a similar level of care and comfort in the sky. To survive and thrive, airlines must re-prioritise a hospitality-first approach, where human emotions and feelings form the foundation of the experience."

NewTerritory is the brand experience partner for Delta Air Lines and has just completed a five-year project for its cabin redesign which will be initially rolled out this month and then across its fleet from early 2025. It features a new lighting system that has been designed to suit each phase of the flight, meaning customers will feel well-grounded and better adjusted to their time zone, as well as new soft and breathable fabrics to better regulate temperature and help passengers feel at home. To find out more about NewTerritory's work visit www.newterritory.io.

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Former head of design for Virgin and founder of NewTerritory, Luke Miles

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-ENDS-

Notes to editors

*The four groups identified were:

1. Feeling Valued: Experiences that make customers feel valued focus on ensuring they are recognised, appreciated and treated fairly.

2. Innovation: Experiences that have elements of pleasure, novelty and feel differentiated, leaving a lasting impression on audiences, while staying agile and evolving with its audience.

3. Contribution: Contribution centres on fostering a sense of community, supporting personal learning and growth, and promoting responsible behaviour.

4. Trust: Trust is cultivated through a brand's consistent ability to meet or exceed customer expectations, establishing reliability as a cornerstone of the relationship.

The 16 defined attributes were:

Feeling valued:

  1. Personalisation: Tailoring Experiences to Individual Preferences.
  2. Attentiveness: Demonstrating Care and Consideration for Customers.
  3. Fairness: Ensuring Interactions are Perceived as Fair and Balanced.
  4. Empathy: Demonstrating Understanding, Making Customers Feel Important.

Innovation:

  1. Discovery: Offering Opportunities for Customers to Explore New Ideas
  2. Pleasure: Creating Enjoyable and Exciting Experiences.
  3. Revolutionary: Introducing Groundbreaking and Differentiated Products or Services.
  4. Adaptability: Ability to Refine and Adapt Offerings to Meet Market Trends.

Contribution:

  1. Collectivism: Fostering Community and Shared Purpose Among Customers.
  2. Cultivation: Supporting Customer Growth and Development Within the Community.
  3. Inspiration: Motivating Customers to Achieve Their Potential and Contribute Positively.
  4. Responsibility: Promoting Ethical Behaviour That Benefits the Community and Beyond.

Trust:

  1. Consistency: Ensuring Consistent Delivery of Brand Promises.
  2. Reliability: Being Dependable and Trustworthy in All Interactions.
  3. Transparency: Practicing Open and Honest Communication.
  4. Authenticity: Remaining Genuine and True to Brand Values.

For media information and editorial images, please contact:

Liam O'Neill

liam@crowdpull.co.uk

Or

jfield@threesixtydegrees.net

For high resolution copies of these images, please get in touch with the PR contacts above.

Cannot view this image? Visit: https://images.newsfilecorp.com/files/10929/226862_02a%2001%20make%20yourself%20at%20home_3800_550.jpg

Delta Air Lines' new cabin interior, part of a five-year project, designed by NewTerritory

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10929/226862_02a%2001%20make%20yourself%20at%20home_3800.jpg

Cannot view this image? Visit: https://images.newsfilecorp.com/files/10929/226862_162bf80ac4c8e83b_004.jpg

Delta Air Lines' cabin redesign will be initially rolled out this month and then across its fleet from early 2025.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10929/226862_162bf80ac4c8e83b_004full.jpg

About NewTerritory

NewTerritory is a brand experience studio transforming relationships by design. Based in Clerkenwell, London, United Kingdom, the team are guided by data-driven insight, it crafts seamless end-to-end experiences, building advocacy and delivering long-term value for brands. Founded by former head of design at Virgin Atlantic, Luke Miles, the studio is recognised for delivering game-changing products within travel, hospitality and infrastructure.

Its brand intelligence platform, Aura, informs investment at the right moments, combining strategy with data to enable measurement, comparison and optimisation of brand experience.

Visit www.newterritory.io to find out more.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226862

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