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The air travel industry has always depended on non-ticketed revenues for a boost, a trend that has only grown more pronounced as it bounces back from the challenges posed by the COVID-19 pandemic.
With the release of Valour Consultancy’s comprehensive report on the market for onboard ancillary revenues, it becomes clear that the evolution of in-flight sales is picking up pace, thanks to the swift rise in digital technologies and payment solutions.
Historically, ancillary revenues for airlines came from sources such as priority boarding, allocated seating, baggage and cancellation fees. This would be generated mainly during the booking or check-in process. Over time, these sources expanded to include car rentals, travel insurance, airport transfers, and even hotel reservations - a change significantly spurred by the introduction of the low-cost carrier model.
Traditional trolley services, once the primary means of providing onboard amenities, are now transforming. These trolleys, which used to offer a basic range of duty-free items and a limited menu, are becoming digitalised, providing an array of products and services to passengers.
Adopting In-Flight Entertainment and Connectivity (IFEC) platforms is dramatically changing the in-flight retail landscape. With these platforms, airlines now have the opportunity to diversify and expand their onboard shopping experience.
Enhanced menus, extended product catalogues, and even high-end goods are now available for passengers, with the option of receiving their purchases either during the flight or once they land. The added connectivity has also ushered in a range of new services, from booking tickets to attractions, making restaurant reservations, or even arranging for subsequent travel.
A noteworthy advantage of this rise in connectivity is the heightened security in payments. It's become more challenging for fraudulent activities to occur, leading to a decrease in declined payments.
Additionally, targeted advertising becomes a potential goldmine for airlines. However, the journey is not without its turbulence. Despite the visible benefits, there are challenges in both technical and corporate domains. If not adequately addressed, these challenges might very well hinder the potential growth of the onboard ancillary revenues market.
In conclusion, the report by Valour Consultancy serves as an essential guide for individuals, companies, and airlines keen on navigating the waters of onboard ancillary revenues and digital payment solutions. The world of in-flight sales is evolving at a rapid pace, and for those willing to innovate and adapt, the sky's the limit.
At PXCom, we always emphasize the importance of staying abreast with such market trends, ensuring airlines are well-equipped to cater to the evolving needs of their passengers.
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