Opinion: A Passenger-Centric Retail Strategy is Key to Airline ROI
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José Lirio Silva is head of Onboard Retail, Europe and managing director at Retail in Motion GmbH. He has extensive experience in retail: prior to joining the company in 2014, José worked at METRO Group, where he expanded and managed the Customer Led Category Management department and acted as head of Corporate Program Office. In this instalment of In the Hot Seat, Silva discusses how a humanized retail strategy can be the way to a traveler’s heart.
Onboard retail programs offer airlines room for growth in various areas, including passenger satisfaction, brand alignment and cost reduction. By offering travelers a broader selection of products from brands they already trust, airlines have the opportunity to improve satisfaction rates and pave the way for passenger centricity.
José Lirio Silva, Retail inMotion
What are some products that airlines should consider stocking for today’s pandemic-weary travelers?
Retail demand has largely remained constant, so airlines are offering the same products as before, but with better processes in place to curb interaction and boost hygiene standards. Trends such as sustainable packaging, food traceability and healthy eating, which were gaining momentum before the pandemic, will still influence travelers’ choices.
What does it mean to be “passenger-centric”?
The term “passenger-centric” has different connotations. It can be surprising the customer and over-delivering on their expectations, but it can also mean that offering the best quality/price ratio. It’s all about making everything as convenient as possible for passengers.
What are some different ways airlines can curate a truly compelling, unique and successful retail offering?
First, the airline should be clear about their value proposition and brand promise. Then, they need to find a suitable retail brand partner that will enhance this promise and help create a strong, niche brand-positioning strategy. By doing this, airlines can leverage their distinct position and use in-flight services to deliver on their promise of quality and choice.
How has in-flight retail evolved during the pandemic? Do travelers still have an appetite to shop, and will a retail program provide a consistent return on investment during this critical time?
Even before the pandemic, travelers had started to become more conscious about their consumption habits. The pandemic simply reinforced this. Passengers have not lost their appetite to shop, but we are seeing a change because they are doing it in a more conscious way.
Regarding a consistent return on investment, I think a balance can be found between a purely margin-driven program and a program that is solely focused on customer satisfaction. Retail inMotion offers a well-balanced mix of both these concepts.
What does a company like Retail inMotion bring to the table for airlines looking to launch or revitalize their retail program?
Our technology is reliable, easy to use and scalable. We have a team composed of experienced catering operators, creative category managers and talented designers. Additionally, we always deliver on our commercial promises.
We listen and we ask questions until we fully understand airlines and their brand values so that we can offer them individualized solutions and partnerships tailored to their needs and expectations. When it comes to our customers, we do not believe in a one-size-fits-all approach.
How can a retail program be an extension of an airline’s brand values? Can you provide an example courtesy of one of your customers?
The way we see it, a retail program must highlight and enhance an airline’s brand values.
A great example is our “Swiss Saveurs” program with SWISS in Geneva. Every aspect, from product selection to menu design, focuses heavily on sustainability and “Swiss-ness,” if you will.