INFLIGHT: GATERETAIL
for them.” Moriarty explains that an increased
focus on driving personalisation and more premiumisation will provide passengers with a reason to buy, especially if they feel there is something different on offer and this isn’t restricted to certain geographical territories. “There are obviously specific
markets that are very strong, like APAC, and there’s also great potential in Latin America. Europe still has it as well. Certain pockets are strong due to high taxes, but as a general rule there’s potential in each of the markets mentioned, it’s just the offering that needs to be developed. “The beauty of our acquisition
of IFS (Inflight Service Group) was they brought extremely strong knowledge and experience in pre- order duty free,” says Moriarty. “Together with Gateretail’s insight
and intelligence, we merged this with the idea that you can become more tailored – but that has to be a data-driven offering. “It’s no longer about opinions
but about facts and what your passengers buy and why they buy… and that takes it to a point when you can have personalisation,” he elaborates further. That necessitates investment in
time, but he adds that by developing a pre-order facility, you’re giving passengers a choice to select what they want for their specific journey, which is evidenced in the success of Gateretail’s Scandinavian business. Returning to the topic of product
assortments, Moriarty notes the delineation between those ‘just- in-case’ basics that we all seek out at some point having left our flight socks or mascara at home, and the ‘guilty purchase’. “It’s when I need to treat myself, or
as a gift, so let’s fulfil that need and make it different from what’s in the airport,” he enthuses. “If you give passengers an
interesting enough product, they’ll buy it, especially if it’s a premium product and they’ll even remember where they bought it, which creates even more engagement between them and the airline.” Harnessing the synergies between
FEBRUARY 2018
pre-ordering, online and actual in- seat activity is critical if travel retail is to thrive in the future. “It’s being able to not just touch
but communicate with passengers at all points of their journey – pre- flight, during and post-flight,” notes Moriarty succinctly. “These are some of the elements
we are presently working on to be able to do just that.”
Home delivery ambition As such, he credits the success of Gateretail’s pre-flight order business with keeping the company ahead of the game. “Gateretail’s capabilities drive
people towards a pre-flight online portal for goods that are delivered during their trip,” says Moriarty. “While this pre-order business
continues to grow, Gateretail is also looking at expanding its offers to other channels including home delivery options.” As airlines forge ahead with
investment into improved onboard connectivity linked to additional revenue generation, does Moriarty think this is deflecting attention away from traditional retail? “No, but I believe that it can be
pulled together into one overall passenger offering and this is where we as retail experts work together with the airline,” he observes. “It’s not just about food and
beverage and duty free, but as the airlines themselves become more connected with onboard Wi-Fi, what this does is allow streaming of content and trading up of services, and all these parts drive the retail opportunity. “In the broad sense, it could
include destination guides, taxi services and so on and that’s when you’re actually on board, but again the pre-order side of it is not pre- ordering product. “It’s communicating to the
passenger and saying these are the opportunities you have and then giving them the choice and option of being in the comfort of their home or workplace and able to select what they want and specify where they want it delivered.” This naturally begs the question as to whether there is any point in
“It’s not just about food and beverage and duty free, but as the airlines themselves become more connected with onboard Wi-Fi, what this does is allow streaming of content and trading up of services, and all these parts drive the retail opportunity.”
John Moriarty, Gateretail
looking at partnerships between airside and inflight duty free – a long explored avenue of ‘opportunity’. However, Moriarty cites the power
of omnichannel retailing in directing the industry’s efforts for the future. He also believes that the current
focus on millennials or ‘generation connected’ is overplayed. “Let’s not forget that you have
a lot of other generations that buy and have considerable purchasing power,” he points out. “The core difference is that we are
undergoing a digital transformation. It’s more about talking human to human with digital as an enabler and not to a specific group of individuals, which takes us right back to driving personalisation.” Concluding, Moriarty says he feels
confident about the businessin 2018. “It’s going to be an exciting year,
even just due to the nature of the challenges – and opportunities, which are there to continue to grow and evolve the business. “At Gategroup we can see this
in the level of focus on retail from a group point of view, as one of the four strategic pillars.” «
More and more airlines are seeking incremental sources of income from F&B, but passengers are demanding more choice and variation.
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