INFLIGHT: INFLIGHT SALES GROUP EUROPE


ISG to ensure differentiated offers on Russian airlines amid arrival openings


With all Russian international airports now permitted to open arrivals duty free stores, Inflight Sales Group believes its ability to provide a unique offer on board its Russian carriers might well make the difference in 2019. Andrew Pentol reports.


too early to say.” In terms of overall business, ISG


Europe enjoyed a stellar 2018, which was much to do with its customers, according to Durban-Villeval. “We are really focused on the Caribbean and North Africa. The market is yet to mature in these destinations, but passengers are willing to buy.” With tobacco accounting for 50%


of sales turnover, keeping the same ‘attractive prices’ is the challenge this year. Tobacco prices on the French


Above: Tablets and online training are being provided for crew.


W


hile the gradual opening of arrivals duty free shops in Russia provides


a new window of opportunity for ground store retailers, airlines and inflight concessionaires have something extra to think about. For the European division of


Inflight Sales Group (ISG), which works with carriers including Aeroflot, Rossiya, Utair, Aurora and Royal Flight, the opening of arrivals stores is a significant challenge. This follows the long-awaited


passing of an order by the Russian government on 12 December 2018 giving the green light to airports and travel retailers to open the stores, as first reported by TRBusiness. Karen Durban-Villeval, President,


“We are really trying to differentiate our offer. This may make the difference in the coming year.”


Karen Durban-Villeval, President,


Inflight sales Group Europe SAS 26 TRBUSINESS


Inflight sales Group Europe SAS tells TRBusiness: “On board Aeroflot, for example, we have a different market compared to our other airlines. “Passengers like niche products


and niche fragrances which they cannot find in duty free shops.”


Arrivals response As more Russian arrivals stores prepare to open – Russian retailer RegStaer has already opened a 120sq m store in Vnukovo International Airport – the ability of ISG to differentiate offers on board Russian carriers will shape its success in 2019. “We are really trying to


differentiate our offer,” vows Durban-Villeval. “This may make the difference in the coming year.” She continues: “Price will also


be vital onboard, where it is always about impulse purchasing.” Despite acknowledging the


challenge presented by arrivals duty free stores in Russia, it is nonetheless too early to jump to any conclusions. “This is something we must face


together with our partner Aeromar. We need to see what impact the new stores will have. At the moment, it is


domestic market are set to increase in 2019 – cigarette packs in France could ultimately cost up to €10 by 2020 – and with the French government aiming to reduce the price difference between the duty free and domestic market, repeating last year’s success will not be easy. Further reflecting on 2018,


Durban-Villeval says: “2018 was a great year because our IT parameters changed, and we had more and more customers. “Also, there was only one aircraft


when we started with French Bee (formerly French Blue). Now, there are three.” The development of its buy-on-


board business also contributed to ISG’s European success last year. “The combination between


buy-on-board and duty free is really interesting in our market. It is important to be able to do both which is what we are doing.” Further highlights were the


integrations of Corsair and Aigle Azur in to the ISG portfolio. Last September, ISG announced it had signed a full concession deal with Corsair for onboard duty free sales, effective 1 November 2018. This followed an announcement


in April that ISG had secured a contract to manage the Aigle Azur onboard duty free and buy-on- board business. The agreement was


FEBRUARY 2019


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