Memo to airlines: Fees not only promising profit centers
If you thought airlines’ only profit options are fees, think again. There’s a huge opportunity for revenue growth for airlines inflight retail.
So says a new study by Ink, which terms itself the global leader in "connecting companies with travelers. "New research from Ink, demonstrates a demand for more luxury priced and affordable products to be sold inflight," the company says.
The survey questioned over 115 delegates of the Airline Retail Conference in Singapore made up of industry experts from Airlines, inflight concessionaires, brands and agents. It revealed that almost two-thirds of those surveyed wanted to see more affordable products available though inflight retail. Another 61% believed that there is a market for pre-ordering premium luxury goods inflight.
"The survey revealed that there is a great opportunity and inflight could be so much more valuable to brands and airlines alike," said Jeffrey O’Rourke, chief executive of Ink. "However, the research also showed that there is confusion about the types of products that need to be provided in order to do this."
When asked which products they would like to see more of or less of in inflight retail, the answer was the same, with 35% suggesting consumer electronics to both questions.
Consumer Electronic, Children’s’ Gifts and Confectionery were the most popular goods last bought inflight by delegates.
"Only 20% of delegates thought that airlines were aware of and close enough to their passengers needs. This shows that there is a need to better understand the passenger, said O’Rourke.
By David Wilkening
David
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