Feature: Amenities
In the bag
Tough times have put new pressures on amenity kits but as Patrick Murray discovers, airlines still see the value in welcoming passengers aboard with a gift bag of goodies
T
erry Daly, Emirates divisional senior vp for service delivery, has estimated that on any standard international flight there
are more than 750 different hard items that the carrier has procured, some branded and some not. And he reckons that for the airline none of these items represents as big an investment, nor as big an opportunity for the vendor, as the onboard amenity kits. They represent the highest profile launch pad for some of the world’s biggest cosmetics and fashion companies. Obviously these contracts are fiercely fought
over. For a brand that’s new to the market, a deal with an international carrier is an immediate placement in an international shop window. L’Occitane, for instance, signed a $4 million, three- year deal with Delta in 2002, when it was working to expand its sales in the U.S. Today, the brand
28
www.onboardhospitality.com
is a household name. In 2007, Elemis launched a five-year deal with British Airways to replace Molton Brown products in the airline’s lounge spas and Club World amenity kits: a massive deal for Elemis and one described at the time as a “jackpot” for the company. For the suppliers, an airline amenities programme is first and foremost a marketing opportunity. Their mark-up onboard is razor- thin compared to their massive retail margins. Although there is a substantial investment for airlines, they still always get a great deal. This is especially true at a time when major carriers are strapped for cash. John Chambers, of Brand Addition, sources brands for airlines. He says: “The amenity kit market remains tough with a pressure on cost from clients, yet the desire from all parties is to increase the specification. The supply chain
is quite a complicated process and the margin return for the level of complexity of supply, plus the risk associated with delivering an amenity kit programme proves testing. This year in particular, the labour conditions in China are forcing increasing costs and shortage of labour in key areas and this has also meant challenging conditions, especially for those suppliers in the longer term contracts where prices are fixed.” His company sources global cosmetic and fragrances to reflect latest trends and he adds: “We are hopeful that as the market starts to pick up again that in turn, budgets will ease a little which then enables us to play to our strengths of quality and design.” SIA has said that handing over the amenity
kit to the passenger is a ceremony; it helps passengers feel more looked after. Although some airlines are cutting back on spending,
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68