Expect more in-destination activities to be available via your favourite airline if a report on airline retailing is to be believed.
The GuestLogix report predicts more of the same in terms of wifi connectivity, more selling to everyone in the air and on the ground, and more efficiently, via mobile and digital wallets.
However, the six-point white paper entitled ‘6 for 16: What New Airline Retailing Experiences Await Airlines and their Passengers in 2016′ also predicts carriers will continue to widen out their offering to in-destination services such as theatre tickets, dining reservations and museum entrances.
Ryanair, for one, has made no secret of its desire to offer “new types of ancillaries” when talking about the development of its new website and mobile offering.
Another prediction is the increase in the use of digital/mobile wallets as trust grows with GuestLogix proposing that airlines may even develop their own offerings as well as partnering with existing mechanisms.
The study points to a MasterCard initiative unveiled late last year to bring mobile payment to pretty much any device or fashion accessory.
The six predictions within the report are:
· Connectivity will improve – 24% of global airlines currently have internet service in the air
· Smart selling – taking full advantage of mobile devices and customer data to offer products and services to passengers in an efficient way
· Passenger self-service with pre-ordered goods delivered directly to passengers in their seats
· Mobile payments and further ways to buy
· Destination merchandising
· Increased operational efficiency
Interesting to note that TUI Group has just announced a five-year contract with gategroup subsidiary Gate Retail Onboard.
The deal sees GRO become the sole supplier for inflight retail across all TUI Group’s five airlines.
TUI anticipates growth of inflight sales of 25% by the end of the contract and the tour operator plans to widen its range of products. In a statement aviation managing director Henrik Homann says the consolidation of services will make “TUI one of the largest inflight retailers in the industry.”
The latest airline ancillary revenue report from IdeaWorks Company estimates ancillary revenue will have hit more than $59 billion in 2015, an increase of more than 18% than 2014’s figure of $36.7 billion.
GuestLogix report can be downloaded here.
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