Airlines need to address ground transport sales as the most viable and profitable onboard opportunity, according to a recent survey of consumer attitudes toward onboard shopping by GuestLogix Inc. An online poll of over 150 travelers revealed that four out of five respondents said that it would be helpful to be able to buy transport tickets onboard their flights. This represents a key revenue…
Airlines need to address ground transport sales as the most viable and profitable onboard opportunity, according to a recent survey of consumer attitudes toward onboard shopping by GuestLogix Inc.
An online poll of over 150 travelers revealed that four out of five respondents said that it would be helpful to be able to buy transport tickets onboard their flights. This represents a key revenue opportunity for airlines in the sale of airport transfer tickets, such as bus and train tickets, and share ride and limousine services in destination cities. The results supports earlier global omnibus research by Cossette Communications, Canada’s largest independent advertising company, which revealed that most flyers would find an onboard service that sells destination related items would be beneficial in terms of convenience. That research also confirmed that travelers are most interested in event tickets, entertainment and transportation offers.
GuestLogix estimates that the top 20 Asia-based airlines, measured by passenger trips, serving their top seven busiest airports could generate over US$115 million in annual incremental profits from onboard transport ticket sales on just 10% of their passengers buying tickets during flight.
The survey also found that a high number of respondents were comfortable with making onboard purchases, and were already doing so – 63% bought items onboard during their last flight. Out of these, the majority of purchases comprised duty-free merchandise (68%), followed by food and beverages (F&B) (51%).
“This survey sends a clear message for airlines in Asia that broadening their in-flight offerings to include ticket sales will greatly help offset the pressures of the economic downturn and generate important new profit streams,” said John Devins, Regional Director Asia Pacific, GuestLogix. “Most travelers are open to purchasing items in-flight to improve their travel experience including the possibility of ticket sales onboard. This offers a much greater profit margin than duty-free or F&B sales, without the inventory hassle.”
GuestLogix supports carriers’ retail strategies with its proprietary Mobile Virtual Store, an end-to-end onboard retailing solution that enables travel operators to establish and grow new profitable revenue streams.
The company also recently launched its next generation OnTouchTM global onboard merchandising service, which allows airlines and vendor companies to move beyond the sale of physical items to retailing innovative products and services onboard, such as catalog shopping with post-flight delivery, airport transfers, entertainment tickets, phone and web offerings, and concierge support.
Barrie Seidenberg, President and CEO, Viator said, “The GuestLogix survey results are a firm indication that travelers find value in purchasing their trip needs in advance of arrival at their destination. Broadening the distribution of a selection of Viator’s services to travelers in-flight is another way we can help improve their travel experience and help them save time and money at their destination.”
Viator is the world’s leading online resource for travel experiences, providing access to more than 5,500 tours, attractions and activities in 450-plus destinations in 75 countries. The company has partnered with GuestLogix to provide travellers with onboard access to ground transportation services in countries across Europe and Asia Pacific via OnTouchTM Ground Connections, part of the OnTouchTM merchandising service.
GuestLogix has agreements with the world’s top airlines to service over 800 million passenger trips annually, or 30% of all passenger trips worldwide.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
