Apple’s recent transition to eSIM-only iPads isn’t another random hardware update, but an indicator to the inevitable shift from traditional SIM cards to eSIM-only connectivity. Every day, the world introduces new updates, digital tools, or technologies.

The businesses that thrive and secure a future in their fields aren’t those that resist these changes, but rather those agile enough to adapt to industry advancements. The game is changing for mobile connectivity, especially with the introduction and adaptation of eSIMs in smartphones and other IoT devices.

Airlines are the major industry in a position to capitalize on this shift. Here, we’ll explore the idea of white label eSIM solutions for airlines and how they can increase ancillary travel revenue by up-selling them to their passengers.

Overview of eSIM Demand Among Travelers

Although the global travel market hasn’t fully recovered post-pandemic, it has been growing strongly over the last years, and reaffirming its role as the cornerstone of most world economies. This year, the travel & tourism sector on its own is expected to contribute an all-time high of $11.7 trillion to the global economy. It’s important to note how significant these numbers are, given that they account for 10.3% of global GDP.

The travel sector has also always been a market giant, and its strength lies in its diversity, with key segments ranging from business to luxury, adventure, and corporate travel. This momentum, over the years, has snowballed into airline market performances because of the increasing demand for air travel. As of 2023, the airline market size was valued at $582.87 billion, and future projections have it that it could reach $895.85 billion by 2031.

The synergy between tourism and aviation illustrates clearly how closely these two industries are intertwined, and how the airline industry has benefited tremendously from growing interests in travel and tourism. It’s more interesting to know that there are additional opportunities for airlines to explore with travelers, especially with the rising demand for digital connectivity. Some of them being pre-trip eSIM offers, and the possibilities of boosting ancillary travel revenue through airline eSIM partnerships.

The way travelers are staying connected today has changed. Instead of buying physical SIM cards or dealing with roaming fees, many international travelers are now activating local and global mobile plans through eSIM technology. As of 2024, the travel eSIM market was valued at $2.5 billion, and there are prospects for better performance in the future.

It’s easy to see why this technology is the new trend, as it comes with a lot of advantages, like:

• Easy switching between mobile carriers
• Multiple carrier profiles
• Low costs on roaming charges
• Remote activation
• Flexibility and convenience

This technology is quickly setting a new normal for digital connectivity among travelers, and for airlines, this could be a prime opportunity to extend their value propositions, to ideas like pre-trip eSIM offers, and increase their ancillary travel revenue.

How Other Travel Sectors Are Maximizing eSIM Demand

Airlines are not the only players in travel and tourism; we have others like hotels, Airbnb, car rentals, and more. If these businesses are already seizing opportunities to increase their revenues through branded, white label eSIM webstores, there is nothing stopping airlines from doing the same. Let’s discuss some of the approaches these sectors are taking as valuable insights and ideas for airlines to implement in their own operations

1. Hotels & Resorts and vacation rentals

Many hotel chains now partner with eSIM providers to offer guests affordable data packages during their stay. Other accommodation businesses, like resorts and Airbnb, are also including this service as part of basic amenities. Most travelers and digital nomads are eager to settle in with reliable internet from day one. Through eSIM services, they don’t have to deal with terrible network connections, excessive charges, and the stress of visiting a physical SIM store to set up their data connection.

1. Car Rentals

Aside from the comfort, privacy, and convenience that car rentals offer during explorations, access to a reliable internet connection is becoming another valuable service in their operations. This new digital product allows travelers to access navigation tools, local apps, and real-time updates without worrying about expensive roaming charges and other difficulties that accompany physical SIM services.

Some strategic ways these businesses are exploring to bundle eSIMs are:

• Check-in/welcome packages
• Loyalty program incentives
• Vacation packages
• Traveler safety packages
• Partnership with eSIM providers

Why are Airlines Perfectly Positioned to Offer eSIMs?

While many industries have the opportunity to resell eSIMs, airlines are uniquely positioned to capitalize on this trend.

1. First point of contact on travel journeys: Airlines are usually the starting point of any international trip, which makes them the perfect channel to offer travel connectivity before travelers get to hotels, car rental shops, or Airbnbs. At the same time, airline eSIM partnerships can also be beneficial because travelers can interact with these companies through booking platforms and mobile apps. Ideally, these are the best media for selling any digital product.

1. High Volume and Global Reach: Airlines serve millions of passengers across international routes. If that isn’t already an edge, we don’t know what else will be. This positioning gives airlines the ready-made audience to resell eSIMs and boost ancillary travel revenue.
2. Ancillary travel revenue expertise: eSIMs are already involved in generating revenue beyond ticket sales, with models like seat upgrades, luggage, and in-flight Wi-Fi. It’ll be extremely easy to incorporate this digital service into their ancillary travel revenue operation.
3. Travel Industry Pain Point Alignment: Connectivity is already a pain point for travelers. Hence, airlines will be solving an existing problem and positioning themselves as a valuable alternative.

The list above is just the tip of the iceberg regarding the numerous benefits of airline eSIM partnerships. Platforms offering eSIM partnership options via white label for airlines provide commissions on sales of all eSIMs. For example, at LimitFlex, we offer up to 30% on all eSIM sales. With the global reach most airlines have, this could be a highly profitable venture.

eSIMs as the Perfect Ancillary Revenue Opportunity for Airlines

By offering eSIMs, airlines can unlock a profitable ancillary revenue that enhances the passenger experience and sets them apart from the competition. Just as hotels and car rentals are utlizing eSIMs to boost revenue and convenience, airlines have an even greater opportunity to do more. The best part is that airline eSIM partnerships can now be easily explored through providers like LimitFlex. Here, you can launch your fully branded website using Limitflex’s white label eSIM reseller tools in minutes, all at zero cost!