At this morning’s ISPY2016 conference entitled ‘Inflight Retail – The Next Generation’ the audience witnessed a flare up of some familiar gripes amongst inflight retail stakeholders – plus some tough talking by concessionaires, suppliers and airlines.

 

During a panel session after a series of presentations made by each inflight retail stakeholder group [concessionaire, airline, F&B supplier, retail supplier and customer], a debate was initiated on the current inflight retail model and how it needs to be changed to ensure the channel’s future.

 

One bone of contention was clearly the perceived threat of online retail giant Amazon and whether its entry into inflight retail should be viewed as a threat or an opportunity. Dino Mezzacappa, Air Canada’s Manager for Onboard Service and Product revealed that Delta Airlines has already entered into an agreement with the online retailer, through which its passengers can purchase products.

 

 

According to Mezzacappa, Delta receives ‘a slice of the pie’ for every Amazon purchase made inflight. This news, unsurprisingly, sparked a debate between suppliers and concessionaires – most notably between Sandro Bottega of Bottega SpA and Jean-Marcel Rouff, Inflight Sales Group Chairman and CEO.

 

He said Bottega believes there is an opportunity to work with Amazon providing the logistical frame work/platform – without leaving out the concessionaire – who could continue to provide the specific marketing expertise and knowledge related to the inflight retail customer.

 

Rouff disagreed with Bottega, suggesting that Amazon’s interference would only strangle margins further for all parties, so forcing the concessionaire out of the equation. Along with a couple of other panellists, he pointed out that based on part practice, Amazon is unlikely to deliver the one-to-one customer service that the inflight environment can. It is this that is considered to be one of the channel’s key USPs [although this is true of some airlines, but certainly not all-Ed].

 

Although, both parties were hard tasked to come up with the perfect solution during the panel session today, there were still many innovative ideas thrown up throughout the conference, particularly in the first half providing food for thought.

 

Many of these were presented in the morning session kicked off by an introductory overview of the inflight retail channel, presented by TRBusiness. This was followed by a presentation called ‘Driving standards through engagement’, made jointly by Phil Marshall, the Managing Director of Shoot the Moon – a specialist food and retail creative communications agency and long-term ISPY partner – plus, of course, TRTUK MD Christine Martin.

The ideas behind the presentation had been many months and even years in the making. When TRBusiness interviewed Martin two years ago she talked about the importance of crew engagement and has since been researching this subject and its potential.

 

At this event she revealed that ISPY/TRT, along with Shoot the Moon (STM) have set up a working group to consider the possibilities of an ‘Engagement App’. At today’s conference, during a workshop, she asked the audience members to brainstorm what this might look like, how much it would cost and the commercial viability of such a project.

 

“Of course I have a vested interest in ensuring the sustainability of inflight retail,” said Martin this morning. “Now I can’t change the commercials of our retail channel, but from my perspective and from what I am hearing, inflight retail is fast becoming a ‘sales prevention unit’, as opposed to a thriving and exciting retail channel, which it has the potential to be.

 

“I keep hearing about the threat of online shopping, e-commerce. So, what do we have that online shopping can never have?”

 

Martin and Marshall both affirmed that the channel presents opportunities for valued human interaction and can offer ‘excellent customer service’.

 

“It is our global inflight retail sales force that has the potential to be our point of difference,” added Martin.

 

“There is a very real need to mobilise and energise our crews and empower them to play their part in this revival.”

 

ISPY is going ‘on tour’ next year, to concentrate on its region-specific events. “On Tuesday we saw a number of presentations which explained the key partnerships we have made and objectives of each regional event,” she added.

 

“This regional approach we hope will result in concessionaires, airlines, suppliers and crew to engage with each other more effectively.”

 

The other opportunity TRT and STM said they identified was to ‘engage’ all stakeholders, all year round and not just at an event.

“We think there is a very real opportunity and need for all stakeholders to come together and be involved in creating an Engagement App which will turn this opportunity into a reality,” continued Martin.

 

This was followed by an excellent presentation made by Phil Marshall on how retailers – not just inflight retailers – need to change the way they communicate with customers. This involves an omni-channel, super social and constantly engaging and targeted approach. This was followed by a workshop where audience members were encouraged to work together to produce some ideas as to what this new ‘Engagement App’ might look like.

 

More to follow from ISPY2016 later this evening – following the Gala awards event.