Why more airlines should offer free Wi-Fi

Passenger experience is one of the most important factors individuals consider when deciding which airline to fly, and this factor is strongly tied to the amenities provided on board the aircraft. The most basic way to implement this concept is to consider the dichotomy between low-cost airlines and full-service network airlines.

For example, if Spirit Airlines and United Airlines have the same price for a flight between New York and Fort Lauderdale, passengers will most likely choose to fly with the legacy carrier. Passenger experiences such as more legroom, complimentary snacks and drinks, and other amenities will naturally motivate this choice.

Some amenities have become much more important than others and are the difference between a good passenger experience and a bad one. In this article, we explore the essential role free WiFi plays in giving you a competitive edge in the dynamic air travel market.

So why the fuss?

Before the COVID-19 pandemic, the importance of staying connected onboard an aircraft was relatively limited. Society generally believed that once you boarded a plane, you would lose reception for several hours and would be unable to contact you via text or email.

Business travelers obviously have the ability to purchase WiFi for more immediate needs, but this was typically limited to a few passengers at the front of the plane. In the economic sector, relatively few people were willing to justify the additional expense and chose instead to stay connected.

But as more and more airlines began offering free WiFi, a large portion of passengers went from being disconnected on the ground to being fully integrated during the flight. This dramatically changes the nature of the passenger experience.

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With free WiFi, flying on Delta Airlines is relatively similar to sitting anywhere else, and you can enjoy it on your phone or other mobile device. But without Wi-Fi, sitting on a three-hour Spirit flight can quickly become a boring and tedious wait.

Photo: Delta Airlines

Major legacy airlines like American Airlines still don’t offer free WiFi, hiding well behind Delta Air Lines and JetBlue Airlines, which do. Statistics are beginning to support this view, with Viasat reporting that free WiFi is the second most important factor for passengers after ticket price when choosing an airline.

economic base

According to Investopedia, the reason free WiFi is such a valuable amenity stems from the economics of bundled consumption. Bundling consumption is defined as the sale of multiple products together that are unlikely to be purchased individually. If a U.S. flight from Dallas to Atlanta costs $100 and a Delta ticket costs $110, a passenger would probably choose to fly American Airlines and use Wi-Fi rather than simply buying a Delta ticket. You’ll feel like it’s better value to pay $8 for.

Photo: Gaudi Lab | Shutterstock

However, in many cases, consumers enjoy the simplicity and convenience of effectively purchasing both a ticket and WiFi in one purchase and purchase a $110 Delta fare. Plus, once you board the plane, paying extra for Wi-Fi starts to seem like an annoying expense, and you’re far less likely to buy it.

In this way, passengers who have convenient access to free WiFi are much more satisfied with their flights, as the two things – ticket purchase and connectivity – become uncorrelated in the consumer’s mind. Ultimately, airlines that fail to provide this important amenity will become even more vulnerable in the market as their customer experience will be significantly degraded.