Feature: Buy on Board
book, but those gluten-free snacks onboard may catch your eye on the day!
OBH: Is BOB a growth area with the potential to contribute to the success of an airline? RG: Absolutely! You are always limited somewhat in terms of what you can do within the confines of an airline galley, but that hasn’t stopped us from experimenting with new offerings - from shaken cocktails to fresh-baked cinnamon buns to the boutique SF-based Philz coffee. Our hope is to always keep reinventing our onboard offerings and service in response to what our guests want.
Another of the panelists representing the airlines was Todd-Traynor Corey, United’s director of retail programmes: OBH: Do you agree that the passenger experience is what counts and this comes under the ‘profitability’ banner? TTC: We believe that there are opportunities to earn revenue though F&B sales. The success of our food-for-purchase programme is due to our customers’ desire to customise their travel experience. United’s Choice Menu is a convenient option for our customers to enjoy a variety of freshly prepared meals and popular snacks onboard.
OBH: What are the financial opportunities of providing BOB? TTC: Choice Menu allows us to offer high-quality products that would not be economically viable on a complimentary basis. In addition, the programme taps into our existing F&B supply chain network. As a result,
sales revenue helps to offset provisioning expenses for complimentary beverages provided on the same flight.
OBH: What are the challenges of providing BOB on a flight? TTC: Predicting customer behaviour. We utilise complex data analysis to calculate provisioning quantities by market and fleet type to ensure boarded product quantity accommodates demand, while minimising wasted product. By offering a combination of shelf-stable snacks and freshly-prepared items, we are more likely to meet peak demand without over-provisioning perishable product.
OBH: Do pre-ordered meals help or hinder the process? What’s the affect on revenue? TTC: United conducted a pre-order test in 2010 in select trans-continental and trans- Atlantic markets where premium meals were sold on a pre-order basis in United Economy®. Sales data concluded demand exists for this service. We also found that offering higher price point products on a pre-order basis minimised the risk of boarding excess product. We are currently exploring opportunities to re-launch a similar programme.
OBH: Is BOB a growth area with the potential to contribute to the success of an airline? TTC: Yes, we do believe that growth opportunities exist to leverage our onboard retail programme by offering more products and services. As we continue to invest in customer experience enhancing technology and additional tools for our inflight co-workers,
From top: Virgin America’s Red seatback menu; a United chicken salad; cocktails on Virgin America; a premium meal option from US Airways.
www.onboardhospitality.com 69
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