What better way to start this post than with this weeks news of Arthur David Proskin who was knocked by the trolley. Instead of being jolly and keeping quiet as a mouse, fired off a verbal volley and went straight to the big house!

I was on a KLM flight last night and there are always a few people that buy from the in flight shopping guide as the trolley comes down the aisle towards the end of the flight, but I’ve never seen more than a handful of people buy on any flight I’ve ever been on. It is clearly an area where there is potential for more ancillary revenue. Qantas had their critics fuming when they reintroduced on board tobacco sales last year after a long hiatus, but clearly this is a big selling item that people would have bought at the airport if they didn’t buy it in flight.

I was speaking to one airline executive a few months ago responsible in part for growing his airline’s in flight sales and he discussed the idea of better promoting the ability to pre-order duty free purchases during the servicing flow for direct channel customers; will be interesting to see how effective they are in this endeavour. I’ve never really spent much time looking at this specific area of airline ancillary revenue, so I was surprised to see there is a publication that deals exclusively with travel retail.  The focus seems to be more on shops in airports, but they also cover in flight sales. I also saw an accouncement today that GuestLogix has appointed Ralph Richardi, former Senior Vice President of Customer Services at American Airlines to the Company’s Board of Directors. I am seeing quite a few annoucements from this company, but at first I confused them with Farelogix, the GNE company. From what I can gather, there is no relationship between the two apart from a similar sounding name. I was very interested to see GuestLogix are able to sell assigned seating tickets to Broadway shows on flights into New York – this overcomes the watches / sunglasses problem of wanting to touch it, play with it, try it on etc before you buy it. This currently loss making company looks to be growing very fast if the following quote is any indication

At the end of fiscal 2008 GuestLogix had signed cumulative customer agreements representing 703 million annualized passenger trips and deployed more than half of this amount.

 

With so many areas in which an airline can go chasing ancillary revenue, it is no wonder that the industry conferences on this topic are proving so popular with both airlines and vendors.

Advertisements