The evolution of Airline Merchandising
Airline merchandising systems create the opportunity to increase airlines’ annual revenues through the personalisation of ancillary services.
In this travel report Amadeus looks into the last 100 years of commercial aviation, from the first commercial flight until airlines’ business model nowadays. This article is not just a piece of aviation history but an overview of travel evolution itself.
“The evolution of Airline merchandising” focuses on the importance of airline merchandising and the revenue opportunities it may bring. Today airlines are earning $51bn in annual revenues through the sale of ancillary services, via their direct channels. However Amadeus estimates that a further $55bn could be secured by 2020 by adopting an omni-channel strategy for these ancillary sales.
This white paper also states that a better connection with passengers can help low-cost carriers, full-service carriers and hybrid airlines to improve the personalisation of the flight experience. The airline industry can increase the value of its transactions by enabling travellers to choose the features and services they wish to include in their air fare. Passengers are getting more and more demanding in regards to their travel experience so personalised offers can open a world of opportunities for the up-sale and cross-sale of airline ancillary products.