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GuestLogix, Inc. announced that it has partnered with the pioneer of airline concession operations, Inflight Sales Group (“ISG”) based in Hong Kong. ISG supplies the inflight retail business for 15 airlines around the world including Cathay Pacific Airways, Dragon Air and Bangkok Airways as well as the mainland China group of carriers.
The two companies are aligning synergies to introduce GuestLogix’ onboard retail technology and OnTouch merchandising platform to customers in the Asia Pacific region. ISG is the largest third-party onboard duty free service provider in the region. Asia Pacific represents the largest onboard sales of any geographic market in the world. The agreement represents the first for GuestLogix with a leading concessionaire in the airline duty free business.
ISG Managing Director Tony Detter said, “GuestLogix provides us a proven, state-of-the-art, payment industry compliant, retail technology platform that has been adopted by most of the leading western carriers. We look forward to working with GuestLogix to better serve our partners in Asia so that they can enhance their existing onboard retail operations, as well as introduce new products and services through OnTouch to enhance their passengers’ experience while driving new ancillary revenues.”
Today, the Asia Pacific airline market represents approximately US $10 billion in annual onboard duty free sales. It is anticipated that more operators in the region, whether network or low cost carriers, will upgrade their onboard retail systems, promote the use of credit cards, and provide new offerings onboard. On an operating basis, the GuestLogix solution will allow airlines to better manage inventory, undertake more effective promotions, and reduce fraud and shrinkage.
“ISG pioneered the onboard duty free retail category and it’s once again spearheading the evolution of this business with customers to reflect their growing interest in onboard shopping and more, complete with destination-based delivery of onboard sales,” said John Devins, Director of GuestLogix Asia Pacific. “Key to this evolution is our onboard store technology that can support any onboard retail model, no matter the transaction and fulfillment requirements. Our complementary and combined strengths will work to deliver highly effective solutions for airlines.”
GuestLogix onboard retail technology provides ISG with point-of-sale (POS) handheld devices to accept cash, card payments and also software to manage: promotions, sales, cash, payment processing, and inventory. ISG airline partners can also take advantage of the GuestLogix platform to launch OnTouch offerings inside the cabin to help their passengers get more out of their trip. OnTouch is a branded onboard store that passengers can access from their seats to purchase products and services while in-flight to be consumed later on the ground.
The ISG signing, which follows GuestLogix’ recent channel partnering with in-flight caterer Alpha Flight Services in Australia, serves to accelerate the Company’s market expansion in Asia Pacific. “Our growing channel relationships and the addition of our recent CUP and PBOC credit card processing certifications are quickly developing the necessary inroads to establishing a meaningful platform footprint this year,” added Mr. Devins.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
