First airline onboard retail analysis to be released
SINGAPORE – February 23, 2010 - As the airline business model undergoes a radical change, two industry leaders, Airline Weekly and GuestLogix, Inc. (TSX-V: GXI), have created the airline industry’s first and only comprehensive metric to detail the effects of those changes on airlines around the world, and measure the performance of onboard retail initiatives - increasingly critical to the success of airline revenues.
The Airline Weekly GXI Onboard Retail Benchmark 2009 provides the industry with a much-needed analysis of trends in onboard retailing, one of the most important segments of airline ancillary revenues. The Benchmark analyzes global, regional and service model perspectives on onboard retailing on an industry-wide scale, covering onboard retail operations encompassing nearly 800 million passenger trips annually.
GuestLogix, the leading provider of onboard store technology to the airline industry and Airline Weekly, the leading news weekly covering the global airline industry business, teamed up to prepare and distribute the first-of-its-kind report, which has taken 15 months to collect, analyze and report on their findings.
For airlines, the report offers an opportunity to measure their ancillary revenue performance against the rest of the industry, and to further develop their onboard retail strategies with an eye toward creating a competitive advantage. With statistics segmented in terms of routes, retail models and product performance, among other breakdowns, the GuestLogix report provides specific information valuable to any airline operating in any market.
As ancillary revenues have become crucially important to airlines, many carriers are turning toward in-cabin offerings for sustainable ancillary revenue growth. With the advent of in-flight credit card payment capability and the popularity of the ‘cashless’ cabin, airlines now have all the tools necessary to create comprehensive, robust revenue development programs within the passenger cabin. How airlines are developing these streams, and the strategies they are employing to ensure their continued development are the subject of the GXI Benchmark.
“In a business as competitive as the airline industry, even a small edge can be invaluable. And now we have this new, critical data in the industry’s most dynamic space