For example, if I’m a passenger on a plane and have an issue in-flight and I reach out via Twitter, other online platform or integrated tool, is the customer service team at the airline equipped, trained and ready to solve my problem before I land?

As I look at the airline landscape, there are a few shining stars. Today, I want to highlight just one as an example.

@DeltaAssist – 24/7 Assistance

I was privileged to hear a presentation last Fall from the team at Delta that heads up @DeltaAssist.

If you aren’t familiar with @DeltaAssist, it’s a team at Delta that uses Twitter to monitor passengers as a real time support staff.

The video below is an interview with Allison Ausband, Vice President of Reservation Sales and Customer Care for Delta, who explains a bit more about the program.

Click here to view the video on YouTube.

There are three components, in my mind, that mark this program as a success.

• Use of existing technologies
  Delta understood the need and benefits of real time support and used existing technologies to provide that level of support on a meaningful scale.
• The right people
  The team is staffed with customer service reps. This is really important. Many social media accounts are staffed with interns or are outsourced to marketing agencies. Delta used a team of individuals from Delta that had the knowledge of how to help and empowered them to do it quickly.
• Return on investment
  When we asked about cost savings, ROI, etc, the team, looking a bit coy, said, “We can’t be very specific, but it’s been a big success.” Allison, in the video above, also reports that the sentiment around Delta’s brand has improved by 7% as a result.

The video below shows one example, albeit a high profile case, of how @DeltaAssist responds to customers.

Click here to view the video on YouTube.

The @DeltaAssist program has been successful enough that the team has recently launched @DeltaAssist_ES to help Spanish speaking customers.

Resource planning for connected IFE systems

Let me be very clear about the point I am making. Putting in processes, people and systems to support connected, real time support (I’m not talking about phone support) takes some time and has a learning curve.

If you are looking at installing an in-flight entertainment system that will allow customers to connect in real time, then you will need to allow enough time and resources to meet the demand.

Jumping in now and creating something akin to @DeltaAssist is a great way to prepare for later roll-outs.

For example, the iPad launched with Hollywood studio approval. Samsung and American introduced the Galaxy Tab in-flight. Connectivity companies started testing streaming content. Seat-centric systems gained notoriety and orders. Wireless systems grabbed headlines. And IFE vendors better integrated consumer trends such as social media.

To be honest, I think we are still on the cusp of those evolutions. I don’t expect to see many big advancements in 2012. Rather, I think suppliers and airlines will work together to further bring last year’s innovations to the marketplace and then enhance those offerings.

I do, however, strongly suggest watching three trends in particular to see what happens.

Connectivity IPOs

Notice that I didn’t just say connectivity? Internet in the sky is only one part of the equation. Money to bring you Internet in the sky is just as important. Recently rebranded provider Gogo announced a $100 million IPO. Howard Lefkowitz at competitor Row44 commented:

We see this [Gogo’s IPO filing] as good news, further confirmation that the investment community sees long-term value in this industry. As for Row 44, we don’t’ discuss our business plans but you can expect some big news from us in the New Year. (Pulled from the APEX Editor’s Blog)”

Boeing tried in-flight Internet years ago and failed. If the investment community gets behind connectivity IPOs, then that shows a belief in the current business models and the viability of the technology. Having said that, understand that I still have some reservations about the current business models and would love to sit in on one of the IPO investor meetings (Michael Small – feel free to give me a call).

Either way, Wi-Fi installs keep rolling out and the bandwidth keeps getting better. And with new funding, old debt can be repaid and development accelerated.

HTML5 & Web Standards

I bet you didn’t expect to see web development trends on my list. So why are they?

Thanks to the late Steve Jobs, smart phones and tablets have driven consumer technology for the last few years. The number of flyers connecting via a phone or tablet is overtaking the number of laptop users.

Until recently, apps provided the best mobile experience. In fact, the number of apps available is ridiculous. Everyone has an app. My dog walker has an app. The problem, though, is that apps are not ubiquitous. You have to create a different app for Android, iOS, Palm, etc and then the apps don’t always work on every device.

Enter HTML5.

With new web standards, you can create responsive designs with impressive effects. Basically, using HTML5, CSS3, APIs and some Javascript, you can create an immersive and engaging experience that works across platforms and devices. Big, small, whatever. The design adusts to the screen size of your device (some examples) and you can create Flash like experiences without installing Flash.

Nifty huh? Well, not really until you think about what that means for your passengers.

Connectivity is and must be the means to an end, not the end itself. Gogo reports that only 4% of passengers on planes with Internet since 2008 have used the service. Airlines that figure out how to use the Internet, instead of just providing it, will set themselves apart from the pack (by 2013 more than half of aircraft in the U.S. will be equipped with Internet, so you are not unique).

A few ideas of what you could do:

• Gaming (both multi-player and single player)
• Gamification (definite outside the box thinking)
• Destination information with a lot of interactivity
• Stream movies, music, etc.
• Buy-on-board and upgrades
• Shopping (see current trends in mobile shopping)
• Social media (not just access to Facebook but your brand and Facebook)
• Promotions (which you can change instantly since it’s in the cloud and not local to the IFE system)
• Customer service
• Cloud services
• And probably 20 other things I haven’t even conceived of

And again, the best part is that you can optimize for various screen sizes and capabilities. The end goal should be to create portals or destinations online where passengers want to spend time and money so that they don’t go everywhere else on the web looking for entertainment.

I have yet to meet anyone who is really trying to take advantage of what is possible.

One last thought. The two hurdles that must be overcome to create a truly seamless experience are the speed of the Internet to the aircraft and the Wi-Fi coverage and bandwidth inside of the plane. That probably goes without saying.

(Full comparison of mobile sites vs. mobile apps)

Android

I’m not talking just about android phones and tablets, but I mean Android based IFE systems. Google hit a home run with Android (even though Oracle may take a bite out of Google for allegedly using unlicensed Java).

Walking around the annual APEX meeting last Fall in Seattle you could easily find a slew of providers using Android as the OS of choice. Frankly, it makes sense. Android is well supported, there’s a huge development community, a large app market, a built-in DRM, etc. And it’s customizable. You can skin it to your liking.

Final Thought

I’ve said this before and I still think it’s true. Hardware becomes commoditized. The experience that you create within the software will give you a competitive edge. So find a provider that will help you create a differentiated experience. But you probably already know that.

Click here to view the video on YouTube.

Click here to view the video on YouTube.

Methodology

We surveyed 542 passengers from the United States, Canada, England, France and Australia. All the respondents were required to have flown at least once in the last year. More than half fly every six months or more often. And 68% of the respondents are between the ages of 26 and 60. The report gives more specificity about the demographic breakdown.

The questions were created based on 2010′s survey and findings and new trends. We expanded the number of topics covered and added more demographic information so I can better slice and dice the data and find interesting results.

A sneak peek at the report

One of the biggest debates of late is what is going to happen to embedded systems as connectivity and the use of personal devices expand. LinkedIn, in particular, has been alight with commentary from all sides of the industry. One of the questions we asked was about the type of in-flight entertainment system passengers prefer. Forty-five percent responded in favor of a seat back system. The number jumps to above 60% for individuals older than 60.

We also evaluated what influences passengers when buying an airline ticket. Since we asked this same question last time, I am able to show trending over time. The biggest change was a drop in the influence of the number of stops. Reading a bit between the lines, I believe that we can infer, especially considering the global economic state of affairs, passengers are willing to make more stops in order to save money. Wait until you see how WiFi affects the ticket buying decision (I even have it broken down by age).

Evaluating content preferences, passengers again showed that popular early window titles are the most desirable movie type. However, passengers prefer popular DVD release movies over less popular early window titles. In other words, the popularity of early window titles absolutely matters. Popular, classic titles are preferred over early window titles that aren’t any good. Why is this important? Because I know a number of airlines that believe that you must always offer early window titles.

More analysis to come

In the coming weeks, I will be posting videos and analysis diving into some of the research a bit deeper. So come back often to check for new information or follow us on Twitter or YouTube.

Brett Snyder, of CrankyFlier fame, asked whether or not embedded systems will still be here in 5 years at the recent APEX Technical Committee meeting in Burbank, California. In my opinion, embedded systems will absolutely be here for the next five years. But others, such as MondoWindow, say otherwise. Let me give a couple of reasons why I think that they aren’t going away in the short term.

Existing systems represent a large capital investment

If I’m an airline that has spent millions of dollars on installing and maintaining an embedded in-flight entertainment system, then I’m not going to tear it out any time soon unless the business case for another solution is extremely compelling. To put this in perspective, ACAS reports that there are 6,456 commercial aircraft flying today with an embedded system. That’s a lot of systems to be replaced or turned off in the next five years.

Existing contracts that have yet to be fulfilled

How many contracts have been signed in the last six months? Or are currently out for bid? Those contracts won’t be fulfilled for another 12-24 months. Which means that airlines will be installing and using embedded systems for at least five years. And why not? When you consider the rise and value of seat centric systems, then why not install them? They offer lower cost, lower weight, higher reliability, lots of features, speed, etc. Wireless does not offer the same experience as seat back systems. In fact, Sam Carswell from The IMS Company remarked, “We will never, never, never offer the same Internet speed in the aircraft that we offer at home.” Systems like Lumexis’ fiber optics solution offer incredible speed and bandwidth.

Many consumers still want seat back systems

We are about to release our 2011 Passenger Survey Results, in which we asked about what type of system users want. Although there has been a sharp rise in the desire to use personal, handheld devices, the results still showed a strong preference for seat back systems (45% preferred one to be exact).

Having now made the argument that embedded systems will be hanging out for the next five years, I want to make clear that I’m not guaranteeing their survival past that. The door is much wider at that point and seat back systems may just go the way of the dinosaur. Though more likely, they will just evolve into something better.

The other side of the argument

As many of you may have heard or read, Greg Dicum of MondoWindow took a hard stance to the contrary several months ago. Through some offline correspondence, Tyler Sterkel, one of MondoWindow’s co-founders, sent me the following remarks:

Let’s review what Greg said on the record at APEX (from the MSNBC article you linked to), which continues to be so controversial - ”I see no seatback systems on new planes in five years. Especially not on planes flying heavily traveled routes less than five hours in North America, Europe and Asia.”

We’re not saying that all existing embedded systems are going to be ripped out by the roots (although there is precedent for that), nor are we saying that existing orders will be canceled. We’re saying that new orders for embedded systems on new planes are going to cease for short- and medium-haul aircraft in 5 years. How does our prediction differ from yours or Brett’s? We’re presenting a bit more detail, and perhaps a more rigid time-frame for the industry shift to occur. But in the end, we all agree about the future of IFEC; we’re just bickering about the time-frame — and even then, we agree more than we disagree! (We’ve already had this conversation with Brett, by the way.)

This has been our experience since making our so-called outrageous predictions of widespread industry disruption at APEX. We are immediately challenged by members of the IFE establishment, who often question our credentials as new-comers to the industry. Within one minute, however, the conversation shifts to a much more subtle disagreement about “when”, not “if” the predicted disruption is going to occur.

We readily admit we don’t know everything there is to know about IFEC, but we are absolutely certain that the IFEC industry has *a lot* to learn about the consumer web. We’re a harbinger of things to come as the web finally infiltrates the cabin, and we’re here to help.”

The final thought from Cranky himself

I spoke with Brett after the technical committee and here is what he had to say:

My view is that while I can’t imagine embedded IFE going anywhere in the next 5 years, it’s far less certain in the long run. It also depends upon how we define embedded IFE. Virgin America is installing what is technically embedded IFE but with wireless delivery, so it’s a different animal. Any issues regarding bandwidth and reliability with wifi will eventually be resolved. That’s just a matter of time. So what will keep airlines using embedded IFE? Of course, there is the issue of early window content. There is currently no way to get that on user devices, but a solution will be created one of these days . . . if people want to create a solution. Then there is the 10,000 foot problem. Unless it’s embedded, there’s no way to provide gate to gate IFE. I’m not sure how important that is, but it’s something to consider.

Ultimately, I’m baffled by people who just assume that embedded IFE will exist far beyond 5 years. I think the timeline is probably much further out than that, but anything beyond 5 years seems far less certain to me.”

Join the intense debate on LinkedIn over the future of embedded systems.

The Albatross One - Row44 owned aircraft for testing

I had the pleasure of meeting Robbie Hyman and Doug Murri at the annual APEX meeting in Seattle and then reconnecting with them at the APEX Technical Committee meeting hosted by Disney. I have found both of them to be extremely amicable and knowledgeable.

In case you aren’t very familiar with Row44, it offers connectivity via Ku-band satellite technology. Since it is satellite based, Row44 offers worldwide coverage. There are two announced customers that have signed up for Row44 – Southwest Airlines and Norwegian Air Shuttle. Though, I’m hearing rumblings of more to come.

I want to share a few things that I’ve learned from my discussions with Robbie and Doug.

Row44 does not disintermediate the airline (I get paid by the syllable)

In stark contrast to Gogo, who sells directly to passengers, Row44 offers private label portals. Let me explain why that matters. When I board a Gogo flight, I interact with the Gogo brand. The airline brand is removed from the equation. I become a Gogo customer. However, when I board a Row44 flight such as Southwest, I remain a customer of the airline. The portal and experience is branded for the airline. So the airline brand is not removed, or disintermediated (more syllables, cha-ching!).

Self-effacing employees

Maybe it’s just the philosopher in me, but there are certain elements or principles that I believe make great companies. One of those principles is self-effacing or modest employees. I like to see leaders that look outside themselves to give credit for achievements and look inside themselves to assign blame. I can’t speak for the entire Row44 team, but Doug and Robbie certainly are two of the best I’ve met at being modest. Both are reserved but are certainly equipped with knowledge and experience.

Row44 is a broadband entertainment platform

I have heard Row44 talk about “walled gardens” for several years now. However, the Row44 team is taking it to the next level. They have deals with Disney, Warner Bros., Universal and Fox to provide streaming content to Wi-Fi enabled devices. Passengers can also stream IPTV and content from CNBC, FOX News Channel and NBC Sports. Though, due to security concerns, the studios are not allowing streaming early window content.

Also, an attitude of entertainment comes across in Row44′s event marketing. For example, the company had a batting cage at the APEX event in Seattle (that’s me in the picture beating a co-worker). Doug and Robbie also hosted audience polls for prizes and blue Row44 cookies at the recent APEX tech meeting (my daughters say thanks for the cookies).

If you’d like to learn more about Row44, you can visit www.Row44.com.

Click here to view the video on YouTube.

Click here to view the video on YouTube.

Looking for more information about the digEplayer L7? Request a quote or demo

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Last week was the annual APEX Conference and Exhibition. And on more than one occasion, I was asked to talk about consumer-off-the-shelf (COTS) solutions versus purpose-built PMPS (like the digEplayer L7). Recently, more suppliers have come out offering re-purposed tablet devices – namely the iPad and not the Samsung Galaxy Tab.

First, let me say that I love the iPad and I own a Samsung Galaxy phone. I believe that they are great products for consumer use. But when we start talking about airline purchasing them and using them as an IFE solution, I start to have some apprehensions. So let me address my concerns head on.

Here’s the question

Will COTS repurposed tablets based on Android OS and iOS operating systems displace purpose-built PMPs in IFE?

Here’s my answer

For the foreseeable future, definitely not. The decision between a COTS solution and a purpose-built PMP has really become one of brand association versus practicality. Some airlines want to align or associate their brand with that of Apple’s or Samsung’s. Which I certainly understand. And the Android operating system does offer several advantages (e.g. huge developer network). However, COTS devices are not built with airline and passenger use in mind. They require repurposing, ruggedization, battery packs, etc. Charging an iPad means taking it out of service. However, a purpose-built device, such as the digEplayer L7, is designed to accomodate the existing operations, needs, and logistics of airlines. The L7 works out of the box. A COTS device does not. COTS also require interfacing with a third party manufacturer that may or may not have interest in working with the airline industry. For example, Apple’s iTunes store is not known for playing well with others. So you have to “jail break” the device to make it work, voiding warranties and support. But again, for some airlines, that’s okay because they want the brand association. For other airlines, the focus is on logistical and operational simplicity. So no, COTS will not universally displace purpose-built PMPs in IFE.

Am I a biased source?

Now, I’m guessing that some of you will simply write my response off as me fighting the competition. Am I biased? Of course I am. Or I wouldn’t be working here. I believe in the value proposition that we offer. Also, we continually evaluate new technologies, including COTS solutions. If at some point, we feel that the value is right for the airline, then we will pursue a COTS course. Ultimately, it’s about offering something of value to our customers that we believe is a long term solution.

Disagree with me? Then let me know on Twitter or on LinkedIn.