Dive Brief:
- American Airlines began rolling out free Wi-Fi, sponsored by AT&T, to all loyalty members Monday.
- Loyalty members can access the Wi-Fi by providing their AAdvantage member number and password and selecting “Free Wi-Fi” to start browsing. Customers can also sign up for the free AAdvantage program for immediate access.
- “Free high-speed Wi-Fi isn’t just a perk — it’s essential for today’s travelers,” Heather Garboden, chief customer officer at American Airlines, said in a prepared statement.
Dive Insight:
American is meeting customers' needs for connectivity in the sky and is pursuing greater loyalty with its roll out of free Wi-Fi.
While American had offered travelers Wi-Fi for a fee as low as $10, complimentary Wi-Fi is becoming table stakes, according to Katy Nastro, a travel expert at Going.
“The race to reliable Wi-Fi has now turned into a race for free Wi-Fi for the major legacy carriers,” Nastro told CX Dive in an email. “American is late to the free Wi-Fi game, with Delta and United already at the party for the past year.”
Offering free Wi-Fi to loyalty members also drives customers to the AAdvantage loyalty program, who might have otherwise remained outside of American’s loyalty ecosystem.
AAdvantage members are more engaged, generate a higher yield versus nonmembers and are a key driver for premium cabin demand, CEO Robert Isom said on an October earnings call.
“Anyone from business to leisure travelers who fly often with one carrier benefits from this offering, and the airline in turn retains both sides of the customer base,” Nastro said. “It's almost like dangling a digital carrot in front of hungry passengers.”
It particularly helps to retain the coveted business traveler who provides greater revenue to airlines.
The rollout is not yet complete. Nastro, an AAdvantage member, was unable to access free Wi-Fi on the day of the launch during a cross-country flight on the carrier, telling CX Dive, “the rollout, while announced, remains a mild pain point until it's fully released.”
AT&T says that by early spring complimentary Wi-Fi will be available on nearly every American Airlines flight.
