BALTIC REGION. airBaltic, LSG Riga and Hanse Distribution have partnered for an onboard sales drive that has lifted average spend per passenger year-on-year despite much reduced travel numbers. Hanse Distribution is a key supply partner for the Boutique shopping offer.
The three parties launched a two-stage promotional push across the airline’s Boutique and F&B ranges after airBaltic resumed flights on 18 May.
In the first step, they introduced a one page flyer with F&B deals on one side and a special €19,90 perfumes offer on the other. The flyers were disposable and distributed by crew to each passenger who showed an interest in buying. Despite the costs associated with flyer production, the investment proved worthwhile in sales terms, noted Hanse Distribution.
Sales Director Anna Berezhnaya said: “Taking into account that the airport offer is still very limited, the one-pager managed to create tangible revenues and significantly reduced stock. Consumer behavior also switched and the average spend per passenger in fact significantly increased comparing year-on-year. Obviously, this showed that passengers are hungry to buy even in these ‘new normal’ times.”
Building on that approach, and on feedback from crew and travellers seeking a wider range, a further step was introduced two weeks ago. This featured a shortened version of the inflight catalogue, in which 80% of the offer was presented.
Berezhnaya said: “The new catalogue is just a few pages with images (pack shots), names of the products and prices. Again, nobody new exactly if this was going to work as it had not been done before. Would passengers buy just by having a look at the pack shot and a one-sentence description? Apparently, yes, if the product and price are right.
“The first weeks of sales have shown that products from all categories (accessories, watches, jewellery, electronics and P&C) were sold, with P&C leading the category share. This has significantly increased average spend per passenger further.”
The pilot scheme offers several lessons for the inflight sales channel, noted Hanse Distribution. It said that:
*Passengers’ willingness to buy continues. With the right products, prices and a motivated crew, sales can be even better than before, it suggests.
* Sales can be managed safely for passengers and crew.
* Retail can support the airline industry in getting back on track.
Berezhnaya said: “We thank airBaltic and LSG RIX for this positive case study and guts to get things done, which we feel the industry needs right now. As flights are adding up and the passenger amount increases, airBaltic once again are pioneering the way forward for inflight retail.”
