How to Drive In-Flight Retail for the Next Generation of Passengers

Airline retailing could be worth $40 billion by 2030 according to a new report by Mckinsey. The next generation of airline passengers presents a golden opportunity for airlines to soar in ancillary revenue through in-flight retail.

Here's why

Gen Z is a Booming Market: By 2029, there will be a staggering 1 billion Gen Z passengers taking to the skies. This digitally native generation boasts higher spending potential than previous ones.

They Shop Differently: Gen Z craves a seamless omnichannel shopping experience. They expect to browse and purchase effortlessly across platforms – a stark contrast to the limitations of traditional in-flight sales. Additionally, they are more cost-conscious and sustainability-minded than previous generations.

Current Offerings Don't Fly: The tried-and-true duty-free options simply don't resonate with Gen Z. Airlines need to revamp their offerings to cater to these evolving preferences.

Airlines can unlock this revenue potential by:

Developing an Omnichannel Strategy: Integrate in-flight shopping seamlessly with pre-flight and post-flight options. Imagine passengers browsing and pre-purchasing items on the airline's app before, during, and after their flight. This creates a smooth and familiar shopping experience for Gen Z.

Changing Onboard Retail Offerings: Stock up on products that resonate with Gen Z, such as sustainable and healthy food options, high-quality entertainment accessories (think noise-canceling headphones!), and eco-friendly travel essentials. Competitive pricing and special offers are also essential to attract budget-conscious Gen Z flyers.

Improving Comfort and Entertainment: Make onboard experiences more enjoyable to incentivize spending, especially on long-haul flights. This could include investing in comfortable seating, better entertainment systems, and offering activities that promote health and well-being.

Addressing Pain Points: Streamline the shopping experience by addressing passenger frustrations. Offer a wider variety of payment options, including contactless payments, and ensure a user-friendly interface for in-flight browsing and purchasing.

By understanding passenger preferences and adapting their offerings, airlines can create a more engaging and profitable in-flight retail experience. Not only for this target group but all various passengers wants and needs.

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