5 Ways Mobility Unlocks New In-Flight Revenue Opportunities

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1 5 Ways Mobility Unlocks New In-Flight Revenue Opportunities

2 5 Ways Mobility Unlocks New In-Flight Revenue Opportunities Technology disruption has spurred widespread changes in consumer-facing industries. In recent years, the way people browse, shop and purchase goods and services has dramatically shifted to favor digital channels. These changes in consumer behavior aren t exclusive to retail customers. People are using their computers, smartphones, and mobile devices to book hotel rooms and flights, order dinner or make reservations, purchase event tickets and make payments with mobile wallets. The airline industry is challenged to meet new demands from passengers, most of whom don t leave home without a mobile device. Customers are used to browsing and shopping when they want, however they want, and this expectation doesn t stop because they re not on solid ground. According to a survey of airline passengers conducted by travel marketing experts m1nd-set, 98% of respondents said they used the time prior to departure or arrival to write s, texts and read social media on their mobile devices. Quality in-flight connectivity is one of the top three drivers of airline choice, following only price and schedule. A survey conducted by market research firm GfK found that 60% of passengers believe that inflight Wi-Fi is a necessity, and 52% of business travelers said the time spent in flight is wasted when Wi-Fi isn t available. Accommodating passengers demand to use their mobile devices in-flight can be more than improving your airline customers experience; it can also facilitate new and expanded revenue opportunities in-flight. Mobility solutions designed specifically for airlines can make new, profitable options a reality. INFINITE PERIPHERALS 2

3 Smart Selling Ticket sales aren t where the money is profits are in additional sales. Currently, passengers are shelling out millions for early check ins, seats with extra leg room, frequent flyer miles and in-flight purchases like meals, snacks, movies, Wi-Fi connectivity and retail items. According to consulting firm IdeaWorksCompany, in 2016, airlines raked in more than $60 billion in ancillary revenue. For low-fare airlines, this additional income makes up a larger part of their bottom line sometimes as much as 40%, and is critical for the company to stay in business. Many types of purchases are a given for airlines many passengers check bags, pay for a movie, or buy a meal. But what about additional opportunities? With the right in-flight mobility solution, an airline can enhance sales opportunities leveraging detailed customer information and product visuals. Flight attendants can access passenger data to identify high-value passengers like travel agents, high-revenue and premium airline status customers. Using travel and purchase histories, attendants can deliver a higher level of personalized service to increase sales and increase passenger loyalty and the likelihood the customer will make a repeat purchase or refer their customers. An airline can also use information from loyalty program accounts, partner retailers and other sources to segment passenger lists based on prior purchases and preferences and create relevant targeted marketing and in-flight offers. For example, if a customer purchased a movie on a previous flight, they may receive an offer for a movie and snack combo on their current flight. You can send offers via or text or make information available to flight attendants for personalized service. INFINITE PERIPHERALS 3

4 Passenger Self-Service Consumers want the speed and convenience of self-service. The rise of self-service check-out lanes and kiosks in stores, restaurants and entertainment venues have given consumers more control over how, when and what they order. Instead of taking a passive role and waiting for a flight attendant to walk by with the drink or snack cart, people may appreciate the ability to order via mobile device app or seatback screen. With an efficient in-flight system, an order would appear as an alert on flight attendants mobile devices so a purchase can be delivered to the passenger s seat. For added convenience, these systems could offer expanded shopping opportunities, allowing passengers to order items for in-flight delivery by your business partners at the arrival gate or at home. Destination Merchandising Today s consumers place a value on their time help them use it wisely. Passengers fill travel time in a variety of ways, but many may appreciate the ability to use their flights to plan activities at their destinations, such as making dinner reservations or ordering tickets. Before Wi-Fi connectivity was available in-flight, any planning for activities after landing were probably notes jotted on paper. With Wi-Fi, however, an airline could establish a gateway that provides a digital concierge service that offers products and discounts are related to the flight s destination. While in-flight, passengers would be able to access a roster of area-related activity recommendations and booking options for entertainment venues, spas and restaurants, rent a car or book a hotel. Leveraging partnerships, the airline can make exclusive offers such as VIP tickets to events at standard ticket prices. This provides the passenger with added value while opening a new revenue stream for the airline. INFINITE PERIPHERALS 4

5 Ease of Payment Cash may be king on the ground, but not in-flight. Most North American airlines don t accept cash for in-flight purchases, even for lower-cost items like drinks or snacks. A point of sale (POS) system enables flight attendants to quickly and efficiently accept credit cards while tracking inventory for faster replenishment once the aircraft lands. Wi-Fi connectivity can be spotty depending on the flight path, so a mobile POS system that efficiently operates offline and syncs with the network when connectivity is restored is a must to offer seamless customer service. Processing purchases through mobile devices that accept EMV chip cards help to make the payment process more secure and cut down on fraud and loss. Devices equipped to accept contactless payments or mobile wallets mimic the modern retail experience that customers crave and provide a seamless, convenient buying experience in the air or on the ground. Airlines may want consider developing their own mobile wallet and linking it to a rewards program. INFINITE PERIPHERALS 5

6 Supply Chain Management & Maintenance Real-time communication is key to everything working like clockwork. No business likes disappointing customers. Enabling passengers to select an item from a list that s updated in real time helps to manage their expectations and avoid the uncomfortable situation of having to report that what they want is out of stock. Through screens or mobile apps, passengers can see the items, offers and retail products that are available and make their choices. This type of system can even enable ordering before the flight so passengers can ensure they always receive their first-choice of beverage, snack or meal. As menu items, drinks or products are distributed, flight attendants can scan barcodes that communicate that the item has been removed from the plane s inventory. This expedites restocking once a flight lands. In addition, an inventory management system enables airlines to collect data that helps to boost profits. For example, tracking sales of particular items will show top sellers on particular routes so inventory levels can be adjusted for higher sales. This data also helps ensure that the airline is stocking items that will sell and not just take up space. Gathering more data about consumer preferences on different routes and what items are flying off the food and beverage cart and which ones are going out of date. This will help airlines work with their supply chain more effectively, including caterers, suppliers, warehouses and delivery. Optimizing the supply chain will help save time and money while increasing revenue. Mobile systems can also be used to inform airline maintenance crews if a seat, tray table, restroom, etc. needs cleaning or repair so it can be handled quickly and efficiently once the plane has landed. INFINITE PERIPHERALS 6

7 Set a Course for Higher Revenues and More Satisfied Customers Technology is driving consumer expectations and will continue to disrupt traditional inflight customer service operations. Like other industries, airlines will be fighting for customer loyalty as consumer preferences continue to evolve. Mobility solutions enable an airline to provide exceptional customer service, personalize targeted marketing for higher sales, offer new destinationrelated products and services and pinpoint new efficiencies onboard and throughout the entire supply chain. Your vision for more passenger-centric, efficient and profitable operations can become a reality. Contact Infinite Peripherals to learn how. Since 1993, Infinite Peripherals, Inc. (IPC) has been fueling mobility with cuttingedge mobile peripheral devices, software, receipt printers, mechanisms and receipt printer-related components. Numerous major retailers in the United States are moving to mobile POS with IPC s Linea Pro and Infinea Tab, helping to transform shopping, drive traffic and increase customer conversion rates. Anticipating trends and pre-empting solutions for a constantly evolving business landscape, IPC enhances operations in retail and other industries, including healthcare, hospitality, transportation, warehouse and logistics, entertainment and security. For more information, contact Infinite Peripherals: Mitchell N, Irvine, CA Phone: Toll-Free: Fax: mobilesales@ipcmobile.com INFINITE PERIPHERALS 7

8 ipcmobile.com Mobility solutions designed specifically for airlines