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Brand Loyalty is Declining for Most Luxury Automakers

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Automakers Brand Loyalty

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Brand Loyalty is Declining for Most Luxury Automakers

New research conducted by S&P Global Mobility has found that brand loyalty—measured as the percentage of buyers that go back to the same brand for their next vehicle—is falling across the luxury segment.

In this infographic, we’ve visualized the results of this research, which spans from January 2020 to April 2022.

Brand Loyalty Losers

The following brands have all experienced a drop in brand loyalty over the time period.

For additional context, we’ve also included each brand’s score in the J.D. Power 2022 Initial Quality Study. This is measured based on the number of problems experienced per 100 vehicles (PP100) in the first 90 days of ownership.

BrandPercentage Point Change
in Brand Loyalty
PP100
🇬🇧 Land Rover-9.2193
🇩🇪 Porsche-8.5200
🇺🇸 Lincoln-7.9167
🇩🇪 Audi-7.3239
🇩🇪 Mercedes-Benz-7.0189
🇮🇹 Alfa Romeo-6.6211
🇺🇸 Cadillac-6.4163
🇸🇪 Volvo-5.3256
🇯🇵 Infiniti-5.2204
🇬🇧 Jaguar-5.1210
🇯🇵 Lexus-4.8157
Luxury average-4.5199
🇯🇵 Acura-2.7192
🇩🇪 BMW-2.3165

Land Rover experienced the biggest drop in loyalty, despite a better than average PP100 rating. One potential reason is timing⁠—the brand’s premier model, the Range Rover, has been in its fourth generation since 2012. The SUV has become relatively dated, though a new fifth generation was recently revealed for the 2022 model year.

Two Volkswagen Group brands, Audi and Porsche, also fared poorly in terms of loyalty. This is somewhat surprising, as both brands offer a portfolio of both gasoline and electric models. Many competitors, such as Acura, Lexus, and Maserati, have yet to release an EV.

Brand Loyalty Winners

Three brands have managed to buck the trend, as shown below.

BrandPercentage Point Change
in Brand Loyalty
PP100
Luxury average-4.5199
🇺🇸 Tesla+4.0226
🇮🇹 Maserati+4.3255
🇰🇷 Genesis+8.5156

We can draw parallels between Tesla and Apple, in that both have incredibly loyal followers.

For instance, between March 2021 to April 2022, 62% of buyers/households who returned to market and previously owned a Model 3 purchased a new Tesla. That’s an impressive statistic, especially when we consider Tesla’s history of build quality issues.

Maserati appears to be in the same boat. The Italian automaker has strengthened its brand loyalty by 4.3 percentage points, despite having the luxury segment’s worst PP100. Perhaps build quality matters less than we think.

Another Factor to Consider

Ongoing supply chain issues could also be contributing to wide-spread declines in loyalty. Rather than waiting several months (or in the case of EVs, years), buyers may switch to a different brand that has cars in stock.

We are still monitoring it week to week, but up to now basically worldwide, we had no issues running production.
– Joerg Burzer, Mercedes-Benz

Many automakers have reported that their supply issues are diminishing, though new economic challenges have risen. For example, surging inflation has pushed the price of a new car to record highs. Combined with rising interest rates (cost of borrowing), this could negatively impact the demand for new cars.

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Markets

Ranked: The World’s Top Flight Routes, by Revenue

In this graphic, we show the highest earning flight routes globally as air travel continued to rebound in 2023.

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The World’s Top Flight Routes, by Revenue

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

In 2024, a record 4.7 billion people are projected to travel by air—200 million more than in 2019.

While revenues surged to an estimated $896 billion globally last year, airlines face extremely slim margins. On average, they made just $5.44 in net profit per passenger in 2023. Today, the industry faces pressures from high interest rates, supply chain woes, and steep infrastructure costs.

This graphic shows the highest earning flight routes worldwide, based on data from OAG.

The Top Revenue-Generating Routes in 2023

Below, we show the airline routes with the highest revenues in the first half of 2023:

Route Airport CodesRevenue H1 2023
Sydney to MelbourneSYD-MEL$1.21B
New York to LondonJFK-LHR$1.15B
Riyadh to JeddahRUH-JED$1.03B
Dubai to RiyadhDXB-RUH$990M
Los Angeles to New York LAX-JFK$801M
San Francisco to NewarkSFO-EWR$722M
Newark to Los AngelesEWR-LAX$682M
Singapore to SydneySIN-SYD$650M
New York to Paris JFK-CDG$647M
Perth to MelbournePER-MEL$642M

As we can see, domestic flights comprised six of the 10 largest revenue-generating flights, with Sydney to Melbourne ranking first overall, at $1.21 billion.

In fact, this route is earning more than twice that of pre-pandemic levels, even as the number of passengers declined. The flight route is largely dominated by Qantas and Virgin Australia, with Qantas achieving record-breaking domestic earnings margins of 18% in the fiscal year ending in June 2023. Lower fuel costs and soaring ticket prices were key factors in driving revenues.

Furthermore, Qantas and Virgin Australia are major carriers for flights between Melbourne and Perth, another top-earning route.

New York to London, one of the busiest and most profitable routes globally, generated $1.15 billion in revenues, representing a 37% increase compared to the same period in 2019. Overall, the flight route had 3.88 million scheduled airline seats for the full year of 2023.

The highest revenue increase over this period was for flights from Dubai to Riyadh, with revenues surging 416% year-over-year. This two-hour flight, a highly lucrative route between major financial centers, is one of the busiest in the Middle East.

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