Is onboard retailing the next big revenue frontier for AsiaPac carriers?

Asia-Pacific airlines looking to offset spiking costs might want to pursue more aggressive retail selling strategies.

"Revenue enhancements like tailoring products to markets, continuous innovation in in-flight entertainment and customer service need to be at the forefront of an airline’s ancillary strategy," said Association of Asia Pacific Airlines’ (AAPA) Director General Andrew Herdman at the recent Asia Pacific Aviation Insurance Conference.

"With recent fleet expansions and the entry of new low cost carriers, Asia Pacific is the largest region in the world for passengers, accounting for almost 34% of passenger traffic worldwide. However, as the region is poised for more growth and traffic in the coming years, for airlines to survive and thrive there needs to be a renewed focus on offerings that offsets rising fuel and other costs that are both sustainable and attractive to passengers," said GuestLogix in a release prefacing the industry report "The Retail Store at 35,000 ft: How New Travel Trends in the Asia-Pacific Region Create New Opportunities for Airlines."

The report further explains that new retailing opportunities for airlines have been created as passenger traffic continues to grow in the region, and is meant to be a resource for the region’s airlines when considering implementing or improving their onboard sales and retail programs.

"As reported by the Asian Travel Monitor, a recent survey reveals that 32% of Asian travelers plan to travel more in 2012 than they did in 2011 and 37% plan to travel the same amount. Coupled with the fact that Asia Pacific travelers spend more than travelers from the United States while traveling, the retailing opportunity for airlines is clear – and profitable if executed properly," it added.