Report: In-Flight Broadband Won’t Work At Per Flight Pricing

Posted: Aug 6 2008, 8:24am CDT | by , Updated: Nov 17 2010, 4:48am CST, in News | Other Stuff

 

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According to research firm Freesky in-flight broadband access won’t work without new pricing structures. The firm says that at pricing per flight for broadband access the majority of passengers simply won't use the service.

The firm suggest charging "exceptionally high" per minute fees like cruise ships or business jets. As a passenger that is the most ridiculous suggestion I have ever heard. If you want to make money off the service, I would pay $5 to $10 while on a flight to access the net and avoid boredom. You try to charge me $1 a minute and I won't use it period. I think many passengers would also choose to book an airline offering free in-flight broadband over one who charges, I know I would.

"If the airline broadband industry wants to move beyond the wait 'til next year philosophy that has defined it since 2001, it needs to lose its fixation with per flight pricing," according to David Gross, author of the report. "Either it needs to charge exceptionally high per minute rates like providers serving business jets and cruise ships do, and serve a high-end niche only, or move to subscription services like most terrestrial hotspot services. The mushy middle approach of charging more than a ground service, but less than a business jet service will neither attract the mass market, nor maximize revenue among price-insensitive travelers."

Via Freesky

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<a href="/latest_stories/all/all/3" rel="author">Shane McGlaun</a>
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