Page 29 - AAA MAY-JUNE 2012 Online Magazine

FEATURE INFLIGHT RETAIL

as fertile ground for all sorts of mobile the current approach relies on the cabin Several European
innovation such as flight-tracking apps, crew to be the facilitators for the sale, but
apps that determine delay times, seating the application of recent technology can carriers have shown
plans and internet access for layover shift the sale to become more passenger- great success with
times, airlines themselves have yet to centric. and a key aspect of capitalising generating ancillary
leverage this channel to its fullest extent. on consumer captivity is streamlining the
this change in the way travellers purchasing process. revenue on board
behave, with smartphones and with up to four to
connectivity changing the way they New approach five different ‘selling
interact, has given airlines the opportunity earning revenue through in-flight retailing
to tap into this behaviour and grow their involves presenting a captive audience opportunities’ on
revenues in the process. the recently primed to spend, with convenient, a given flight
announced ontouch® concierge mobile destination-relevant and attractive retail
application allows airlines to provide their options. this can now be done through a
customers with access to their branded whole variety of channels – physically in - Alison Croyle, JetBlue Airways Inc.
on-board stores via their smartphone, the cabin, through a catalogue, or using
where they can purchase a variety of Wi-Fi capability through a controlled
goods and services including meals, online portal. this enables the passengers
movies, ground transportation, theatre to complete a transaction easily and
tickets and gifts, and products and securely through a branded “on-board
services that today’s connected travellers store.”
are looking for – not just traditional duty- like a retail store, this branded on-
free items. board store will involve a different set of
“several european carriers have characteristics that vary from airline to
shown great success with generating airline, taking into account flight duration,
ancillary revenue on board ... with up to destination, and route. using this data,
four to five different ‘selling opportunities’ the airline is able to “stock its shelves”
on a given flight,” said alison croyle, a with relevant products and offerings that
spokeswoman with Jetblue airways inc. appeal directly to its passengers. in doing
in the WsJ. she added that as technology so, the airline is able to focus on the needs
improves, it is likely that more carriers of the passenger, offering products and
will look toward to other ways “to meet services that are relevant and wanted.
customer needs as well as generate rather than being viewed as a stand-
additional revenue.” this revenue is alone product, this in-flight connectivity is
considerable in its potential. on one an enabler, providing for a seamless and
flight alone, Korean air sold goods and managed on-board buying experience,
services to the value of us$38,000, a delivered to passengers via their own
considerable increase in real cash profit personal devices and smartphones. this
over the standard ticket-sale income. allows them to not only explore the on-

In the first eight months of 2011 the number of Asians who travelled abroad
rose 6% from the same period in 2010. In 2010 alone, the total number of out-
bound tourist trips from China reached a record 57.3 million, an increase of
over 20% from 2009. Overall, an estimated 90 million tourists travelled abroad
from Asia in 2011, spending a collective US$86 billion. And according to the
latest ITB World Travel Report, similar robust expansion is likely in 2012. Many
tourism boards are redesigning promotion campaigns for the Asia-Pacific and
away from legacy destinations like Britain, Germany, the US, Italy, France,
Spain, and Scandinavia.

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