As in-flight transactions increase, the market for ancillary products and apps is booming, creating new opportunities for passenger engagement, cost savings and revenues for airlines. Keith Mwanalushi reports.
This article was published in the January/February issue of Inflight. To receive more articles like this, apply for your complimentary subscription to Inflight.
The travel experience is getting even more sophisticated as technology pushes boundaries. This extends to ancillary products and how they are delivered, but also ensures more choice for passengers, enabling an enhanced onboard experience.
Onboard retail specialist AirFi has been continuously enhancing its flagship product, Mall in the Sky.
Job Heimerikx, the company’s Chief Executive, says this ecosystem includes a robust point-of-sale (POS) solution and integrates seamlessly with the AirFi box and in-seat ordering system.
“Our focus is to refine in-seat ordering capabilities to offer an even better passenger experience,” Heimerikx tells Inflight.
“One significant advancement is enabling passengers to order goods and services from multiple vendors with a single, PCI-certified payment process.”
PCI stands for Payment Card Industry and is part of an information security standard designed to reduce payment card fraud.
Another major development Heimerikx mentions is the integration of the LEO (Low Earth Orbit) antenna, which allows real-time payment validation.
“Historically, ancillary sales on board have been conducted offline, which presented challenges such as denied transactions and missed sales,” he notes.
Accordingly, the LEO solution can validate every payment in real time, eliminating denied transactions and driving increased revenue for airlines.
“Blueview is a modular solution that delivers key features such as order-to-seat functionality and inventory management for retail operations, while also integrating seamlessly with third-party systems.”
Kevin Clark, CEO, Bluebox
Data points – Improving in-flight retail with AI and analytics
Looking ahead, Heimerikx thinks the future lies in harnessing data.
He says: “Over the last decade, we’ve accumulated a vast amount of data, and with modern AI and predictive analytics tools, we are unlocking valuable insights.”
This data provides airlines with actionable intelligence, such as understanding passenger preferences, correlating flight conditions (such as turbulence or cabin temperature) with purchasing behaviour, and optimising crew performance to boost in-flight sales.
Elsewhere, UK-based Data Clarity Ltd was recently selected by easyJet to support its retail operations, signifying the demand for airlines to gain accurate and rich access to data across its retail operations.
Data Clarity has developed next-gen AI-driven predictive aircraft loading based on many data points, enabling airlines to dynamically load aircraft based on forecast demand instead of packing standard quantities of goods according to Paul Bilham, the company’s Chief Revenue Officer.
He says: “We see significant savings in CO2 emissions, fuel burn and waste from adopting a dynamic loading model, and to accompany the AI forecasting, we also provide generative AI driven 3D packing for operations staff to pack trolleys in the most optimal way.”
The company has also developed a pre-order e-commerce solution which enables airlines to tap into the revenue potential of selling goods pre-flight – combining this with predictive demand forecasting for onboard retail.
Bilham believes this can drive further benefits in optimal onboard loading of stock.
Ultimately, the goal is to deliver ancillary offerings that resonate with passengers on a personal level – considering their preferences, the specifics of the flight, and the region in which the airline operates.
Heimerikx says: “With the combination of cutting-edge technology, data-driven insights, and a localised approach, we’re poised to revolutionise ancillary sales and passenger engagement in the near future.”
Linking e-commerce with in-flight apps – Creating a seamless customer experience
Airlines are increasingly integrating e-commerce within the in-flight apps.
Jan Blanchard, the Chief Executive at MOST, has seen e-commerce features help redefine passenger engagement.
He says passengers have the ability to pre-order and purchase onboard services directly through their apps. However, the true game-changer lies in dynamic, flight-specific inventories. For example, one of MOST’s airline partners curated a regional menu for specific flights.
“This personalised offering resonated with passengers, driving an uplift in ancillary purchases on those routes,” says Blanchard. “This proves that personalisation and relevance trump generic e-commerce integration every time.”
Blueview, developed by Bluebox Aviation, is a software platform designed to enhance passenger engagement and improve the airline experience.
Kevin Clark, CEO at Bluebox, says: “It is a modular solution that delivers key features such as order-to-seat functionality and inventory management for retail operations, while also integrating seamlessly with third-party systems, including airline applications and existing retail infrastructure.”
For airlines already offering in-flight food and beverage (F&B) services with payment systems, Clark says Blueview integrates effectively to streamline operations and by co-ordinating inventory and presenting it as an e-shop accessible on passengers’ devices, the platform enables a more modern retail experience.
He adds: “Blueview supports flexible operational models, such as real-time inventory updates to reflect mid-day stock replenishment and is compatible with an increasing range of F&B systems.”
As Clark further explains, the platform can also be accessed via an airline’s app, offering passengers a branded entry point to its capabilities.
“This approach allows airlines to maintain control over the brand experience while encouraging engagement with other app-based services.”
He adds that while some modern in-flight systems prioritise unrestricted access for passengers, Blueview is well suited for airlines that prefer a curated and cohesive brand environment.
At Omnevo, they have just launched the new “Emirate RED” retail platform, including loyalty integration to support more personalised offers that are coming soon.
The company’s CEO, Michael Raasch, says: “We’re enhancing our iOS app and expanding product features, with exciting updates coming in 2025.”
By marketing the right products at the right touchpoints, Raasch thinks airlines can unlock greater ancillary revenue potential.
He says: “Ordering products while on board for home, hotel or airport delivery is a trend that airlines are supporting ever more. It supports both sustainability goals and improves the overall passenger experience.”
Sustainability-driven ancillaries – Catering to eco-conscious passengers
Environmental consciousness is on the rise amongst passengers looking for ancillary products with sustainability in mind.
Raasch observes that pre-order and e-commerce platforms are offering passengers greater choice, including sustainable options.
He feels this approach enables airlines to expand their sustainable product offerings in a digital environment, minimising the operational costs associated with traditional in-flight magazines and catering logistics, for example, while maximising ancillary revenues.
In October 2024, Moment, a key player in in-flight digital solutions, announced the acquisition of Airfree, an expert in in-flight e-commerce.
Tanguy Morel, Moment’s CEO and co-founder, indicates that Airfree’s ability to digitise onboard catalogues or menus and provide targeted offerings based on passengers’ journeys can reduce onboard weight, in alignment with sustainability goals, by optimising resources and minimising environmental impact.
He says: “Just like Moment technologies, Airfree is accessible from electronic devices, which allows aircraft that do not have IFE seatback screens to not add any additional weight.”
Since joining Moment, Airfree technology has been integrated into the offering, for a unified e-commerce platform accessible both on the ground and on board.
Morel adds that the technology also integrates with any in-flight entertainment (IFE) system, regardless of its age or type.
Fraud alert – Tackling the safety issues with in-flight transactions
As in-flight transactions increase, so does the potential for fraud – and perhaps there is need for a greater corresponding drive to see more secure payment gateways for in-flight purchases.
“Absolutely, this is a critical topic,” agrees AirFi’s Heimerikx. “While some companies have proven track records and maintain some of the lowest fraud levels in the industry, it’s important to note that low doesn’t mean zero.”
Even a small percentage of fraud, when applied to a high volume of transactions, can result in significant financial losses.
Heimerikx believes that addressing this issue effectively can save substantial amounts of cash.
He says the best way to combat fraud is to validate payments securely on the ground before the transaction is processed. Hence, he advocates for payments to be made through systems like the AirFi LEO Connectivity.
“Based on current data and communicated success rates, such systems can pay for themselves with the savings generated from preventing fraud at current in-flight transaction levels,” he adds.
All airlines offering retail services are keen to minimise fraud, which, while rarely quantified in shared statistics, is acknowledged by airlines as a significant issue, notes Bluebox’s Clark.
Reportedly, in some regions, fraud is even organised, with perpetrators using low-cost tickets as an entry point to make substantial purchases – knowing that payment cannot be verified until reconciliation occurs on the ground.
Clark says: “To address this, airlines employ a variety of fraud prevention techniques, but connectivity enabling real-time payment authorisation is one of the most effective.”
He believes this capability ensures that purchases are verified immediately, thereby reducing the risk of fraudulent transactions.
“For this to work effectively, the latency, integrity of the data path, and even the available bandwidth play a crucial role,” Clark adds.
This use case highlights the significant value of even low-bandwidth connectivity solutions, which can provide airlines with a powerful tool to enhance security, protect revenue, and build passenger trust.
In a recent collaboration with an airline client, the MOST proprietary secure payment gateway helped reduce the decline rate for offline transactions from an industry average of five per cent to just 0.4 per cent in six months, according to its findings.
Jan Blanchard at MOST says that by combining PCI DSS compliance, tokenisation, and advanced encryption, the company minimised the risk of fraud and ensured high authorisation rates for transactions.
For the airline, this translated into millions in recovered revenue, a direct result of a focus on secure, efficient payment processing.
Coincidentally, Paul Bilham at Data Clarity points to vendors like Retail in Motion and MOST as having built their own payment gateways which are focused on the demands of offline processing.
He notes that there are also experienced companies such as Elavon and Novelpay in this space, who understand the nuances of onboard retail purchases.
A knack for an app – Enhancing the user experience
In June 2022, Lufthansa introduced the FlyNet app developed by Deutsche Telekom, and since then other operators like Austrian Airlines have joined the fray.
Reportedly, the app has achieved downloads now reaching the high six-figure range – something that is perhaps indicative of a strong interest from passengers using the app to enhance their pre- and in-flight connectivity experience.
Based on user feedback reported by Deutsche Telekom, the app permits quick and easy internet access above the clouds. But users also desire the same functionalities in the airline’s main app, which Deutsche Telekom supports with its software development kits (SDKs).
The in-flight app addresses common concerns with airline Wi-Fi apps by simplifying the user experience, the developer suggests.
Supposedly it combines pre-flight purchase options with in-flight usage, offers easy sign-in through Apple or Google accounts, but also through existing customer accounts such as frequent flyer memberships.
Deutsche Telekom says: “The app simplifies the process for redeeming vouchers or making purchases by using pre-stored payment methods. These features make the process more efficient and user-friendly compared to older and slower Wi-Fi apps.”
The company’s feedback from airlines indicates that operators are increasingly focusing on integrating e-commerce within their main apps and looking for solutions to generate additional revenue streams.
In addition, airlines want solutions to help them offset costs through advertisement and e-commerce offerings to subsidise the free Wi-Fi services on board.
By consolidating these features in their main apps, it is possible for airlines to strengthen their overall value proposition to passengers.
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