Ben Simmons, vice president and regional head of Europe and Africa at IBS Software says the trend of ‘everything now’ presents opportunities, and challenges for airlines

Imagine boarding a transatlantic flight and your favourite drink is ready and served, at check-in you bought comfortable lounge access during your transfer, your taxi at your destination knows you are on time and your hotel has held your room, knowing you will be checking in late.

And, if anything unexpected happens along the way, your entire journey is serviced, not just your flight, with you left to pick up the pieces.

This simple example shows just a few retailing tactics that airlines will be able to adopt to put the customer at the centre of every journey.

This is important as post pandemic passengers are craving travel convenience and a personalised journey to make up for lost travel time.

To meet this demand, airlines can learn from major online retail giants like Amazon, or consumer apps like Uber and ASOS, who are notorious for their customer experience.

This trend of ‘everything now’ presents opportunities, and challenges in airline retailing.

While providing a more personal experience is likely to result in a returning customer, airlines must ensure they are equipped with the technology needed to support the wealth of passenger data that comes with advanced airline retailing.

The importance of data in airline retailing

Advanced airline retailing relies heavily on passenger data, which must be handled securely and with consideration.

If done correctly, airlines can better meet traveller needs and preferences, through understanding and interpreting passenger data, allowing them to better their retail offerings on a rolling basis.

Picture this: you’re browsing flights for your next summer vacation. Based on your past booking history, larger airlines already recognise you as a frequent flyer who typically prioritises baggage and comfort, and can offer you a checked bag at a discounted price.

What if your airline could offer you a discount on an early morning flight, knowing that you usually prefer to book departure flights before 8am.

Or, knowing that you usually travel with your child who is now classed as an adult, offer a free premium meal per their taste preferences for the flight to mark their coming of age.

While all these factors are important for a positive travel experience, advanced airline retailing extends far beyond individual preferences.

Airlines can be using data on booking trends, common flight patterns, and weather forecasts to optimise retailing.

For example, they can analyse past sales data to predict which perishable food might be popular on typical European summer routes. By pre-loading these onto flights, waste is reduced.

To ensure traveller data is protected and leveraged in the right way, airlines must ensure they have the back end processes and protections in place to support this level of service.

Data security frameworks must be firmly in place for the protection of customer data,, with clear governance policies set up to manage data access and ensure data is stored ethically.

Data that is managed effectively, and responsibly will fuel the development of new solutions and services to build modern retail offerings with seamless travel experiences at the centre.

Airline retail to aid recovery

Despite continued fast recovery from the pandemic, it’s no secret that the airline industry is still rebuilding itself.

Airlines are facing new challenges that cannot be controlled, from climate influenced weather issues to a lack of new aircraft limiting supplies, airlines are up against persistent barriers.

And as traveller expectations continue to change significantly, the industry cannot afford to fail to adapt to a factor that could turn from a barrier into an advantage.

To meet a growing need for updated travel experiences, a solution emerges in the airline retail offering.

Airline retail expands revenue streams beyond the initial core air travel products. Some airlines already partner with car rentals, hotels, and even local attractions to create a bundled package.

In the future, customers may be able to order their entire holiday through an airline, with heightened specificity.

Instead of just a car rental provider option, customers can be greeted with options for the specific vehicle features they prefer, from convertibles, to needing in-built GPS devices, or a roof storage rack.

And on the journey customers can expect access to a variety of products of choice for purchase before or during their flight.

From favourite wines, snacks, toiletries, or clothing, the options will be endless. Taking personalisation a step further, airlines can leverage data to understand frequent traveller needs and provide better experiences.

Imagine business travellers booking seats together in a dedicated section of the Business Class cabin, set up with pods featuring four seats around a table – similar to a train set-up.

This would allow for in-flight meetings, maximising productivity while travelling. Or an economy traveller, able to pre-book a bunk bed for 4 hrs, to have a nap on a bed!

The option from an airline could provide small luxuries for economy passengers, building a better flying experience.

However, a clear transition for an airline to maximise all the benefits necessitates a culture of change within the organisation.

Airlines must prioritise and embrace transformation by simplifying and adapting business models to better weather the current storm.

Successfully transitioning to modern airline retail

Many of the world’s biggest airlines are ready to serve their customers in a more personal way, but preparing to do so isn’t easy on a bed of legacy technology.

Airlines must approach modern airline retailing with the perspective of balancing long and short-term value.

Balancing immediate value and long-term pay off with the upfront costs might mean an overhaul of legacy tech is worthwhile for new modern applications to be built on top of an updated technology stack.

Alternatively, some airlines might opt to build further on their legacy technology to prioritise an early approach to retail, though this may cost them more later down the line.

Regardless of the decision, understanding the levels of legacy technology, and how new retail applications will interact with the technology stacks is an essential beginning point on the retail journey.

The future of airline retailing is bright. However, with great personalisation power comes great responsibility.

Data security is essential, but the next stage of retail personalisation demands airlines sensitively consider how customer data is used for passengers to be comfortable with their information being collected.

Prioritising data safety builds trust, fosters loyalty, and ultimately creates a win-win situation for both airlines and passengers.

The Amazonification of airline retailing is not just a trend, it’s a flight path towards a more sustainable, efficient and profitable business model.