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Why is Hawaiian Installing In-Seat Video?

By Brett Snyder | Feb 17, 2009

Hawaiian Airlines has announced that when it starts taking delivery of its new A330 aircraft, it will outfit them with personal inflight entertainment at every seat. While it may sound like a given that an airline should put this type of system in its long haul fleet, I think the case is a special one for an airline like Hawaiian.

Hawai’i is a very unique market in that it’s full of leisure travelers and there is a much smaller percentage of business travelers than most other domestic routes. The trans-Pacific market, which would be the beneficiary of this upgraded inflight entertainment product, is exclusively long haul. The shortest flight is nearly the same distance as a flight from LA to Philly, if that puts things in perspective. Right now, most of Hawaiian’s flights fall in the 5 to 7 hour range since they don’t operate east of Phoenix.

While it’s certainly a decent haul, and Hawaiian likely has designs on even longer haul flying, it wouldn’t make sense to simply put these screens in coach and use that as a differentiator. Flying to Hawai’i can be more of a commodity than other markets because the leisure traveler is so price sensitive. So I can’t imagine these screens drawing any new traffic into the airline. That being said, it may still be a good idea.

If Hawaiian decides to charge for the use of these screens, then it could be a money maker for the airline. Historically, that wasn’t possible, and we still don’t see it very often in the international world, but paying for inflight entertainment has taken off domestically, and there’s no reason others can’t follow along. If Hawaiian charges for the service, then I think this is a good move. If not, well, it’s probably a waste of money.

In addition to writing BNET's travel industry blog, Brett Snyder also pens the award-winning consumer travel blog, Cranky Flier. You can follow him on Twitter under the name crankyflier.

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  •  
    1

    Scottas66

    02/17/09 | Report as spam

    RE: Why is Hawaiian Installing In-Seat Video?

    Is seatback video then a waste of money for JetBlue, Virgin America, and Frontier on their price sensitive leisure routes? Hawaiian is also competing with JetStar on Australia flights, offering a mix of overhead and personal video options for sale.

  •  
    2

    brett snyder

    02/17/09 | Report as spam

    RE: Why is Hawaiian Installing In-Seat Video?

    @Scottas66 - Let me take each of those individually. For JetBlue, it was a brilliant stroke to install LiveTV because they were the first ones to do it. The amount of press and goodwill they received from it was worth every penny. I probably wouldn't suggest they do it today now that it's relatively commonplace, but at the time it was a great idea.

    As for Frontier, they do charge for it now, so I think it's still a smart idea. Also, they are not nearly as leisure-dependent as Hawaiian and they are trying to compete with United by offering a tangible benefit that United doesn't match.

    I don't really get what Virgin America is trying to do, but these are most certainly not just leisure routes. They are trying to compete on product overall, and the TV was a huge part of it for them. Not sure that it's going to work though.

    I don't think Hawaiian needs to worry a lot about Jetstar. That's one route, and I imagine the point of sale for Hawaiian is US-based while Jetstar is Australia-based. It's also only three days a week. So if they have designs on bigger expansions to go head to head against world class airlines, then it might matter. But with their current plan, it's all about domestic flying.

  •  
    3

    Sinfully

    02/19/09 | Report as spam

    RE: Why is Hawaiian Installing In-Seat Video?

    The reasons are very straight forward.

    1) Ancillary revenue possibilities. Currently there are few ancillary revenue opportunities. The most notable is pay per view for the movies. HOWEVER, if another opportunity comes along and you don't have some sort of in-flight entertainment / interactive console at the seat level, you will miss out on that opportunity. The cost of putting the system in now before the plane is delivered is very inexpensive compared to installing it at a later date. The weight of the system is very, very low.

    The systems will be state of the art with USB interfaces allowing for such things as buying mp3's or videos enroute to be taken with you during your vacation.

    2) Seat glue factor. Several airlines have commented that when there is a seat level entertainment system, passengers don't walk around the plane. Flight attendants hate passengers just walking around, especially children. Passengers will stay in their seat to watch their movie(s). Shortest trans pacific flight is 5.5 hours, that is a long time to stay in your seat, but if the movies help pass the time, the better for everyone.

    3) Customer expectations. It is now more common to find the seat back entertainment systems, and customers like them. If Hawaiian wants to be in he same league as the big 6, they have to offer the amenity.

    4) And the most important, commercials. The cost of providing movies and music during the flight is expensive. The price continues to climb. However advertisers are reluctant to spend money to have their commercial played on a general screen since their is no way to know how many passengers viewed the commercial. If you show a commercial before the movie / television show, aka hulu.com, you know exactly how many people saw your commercial, and will spend more for that commercial.

  •  
    4

    brett snyder

    02/19/09 | Report as spam

    RE: Why is Hawaiian Installing In-Seat Video?

    @Sinfully - I agree with you. If they are planning on charging for the service, then I think it's a smart move. If they just throw it out there for free, then I think it's a mistake.

    I do have to disagree with your third point, however. If you fly between Hawai'i and the mainland, it's not common to find seatback video. United and American have overhead screens on every flight to the islands. I believe Northwest has an overhead screen on their Hawai'i flying, even though they have no IFE on most domestic runs. Continental will have in seat video on their handful of flights and Delta will ultimately have it as well, but that's about it.

  •  
    5

    Nicholas Barnard

    02/21/09 | Report as spam

    RE: Why is Hawaiian Installing In-Seat Video?

    Seat glue is an interesting idea... I wonder if the FAA
    eventually will consider in seat video to be a crucial safety
    feature on long haul pacific flights to keep people in their
    seats and buckled up..

  •  
    6

    alangirvan

    02/21/09 | Report as spam

    RE: Why is Hawaiian Installing In-Seat Video?

    Competing against Jetstar? Jetstar is an airline where you prepay for the IFE and the food/drink service. If Hawaiian does charge for IFE it would be good if you can tick a box while making the original reservation.

    This service will replace the Portable Digiplayers which Hawaiian was doing (and Jetstar still do). Shows that Portable are not ideal - passengers might as well bring their own entertainment.

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