INFLIGHT: ALPHA LSG


in the mass repatriation of thousands of travellers and subsequent redundancies at the Luton-based airline. “We had a wonderful and long-


standing relationship with Monarch Airlines and their employees – many of whom became good, personal friends over the many years that Alpha LSG worked in partnership with the airline,” reflects Hayes. “Although this was a very difficult


time for all, we didn’t let the loss of a key customer set us back. Alpha LSG has continued to develop and grow our diverse portfolio. With the support of our shareholders – dnata and LSG – we have developed a flexible and dynamic operating model for catering, premium culinary, logistics and retail services.”


Impulse returns Crucially,


this model has


resonated strongly with Alpha’s leisure customers, together with the millions of former Monarch passengers travelling with Alpha’s other airline partners. Growth catalysts include reshaping


the inflight service proposition using digital technology to shift the focus away from conventional merchandising, to a more dynamic stock inventory system that responds to route-specific demands. Digitalisation has also been


embedded into Alpha’s crew engagement strategy, with digital marketing – chiefly advertising to customers via social media – transforming


communication


methods to ensure retail knowledge and engagement relates firmly to delivering unique products and experiences. “Uniqueness is important –


customers do still value that impulse purchase from the catalogue,” confirms Hayes. “Pre-order and home delivery in


the UK continues to grow, but for the leisure customer there is something about that unplanned impulse buy.” One notable example is


Thomas Cook, which has notched consecutive record-breaking sales in recent years due to new innovation and the close working relationship it enjoys with Alpha LSG. “We’re not a traditional


OCTOBER 2018


concessionaire with Thomas Cook, we are the retailer and this makes a huge difference,” clarifies Hayes. “We’ve been evolving our modular


retail service proposition, and it’s these developments that have led us to deliver the record inflight sales.” Notwithstanding this success, the


rising costs of listing and advertising fees in general in the inflight sector has been a moot point among suppliers for some time. It is also worth noting that these are


sentiments that have been relayed to TRBusiness on frequent occasions over the years [see the February edition for more analysis of the inflight market-Ed]. Whether this is partly a contributor


to larger brands’ reluctance to sustain their presence in the channel is not the subject of debate here. However, the question of whether


inflight needs to review these fees to reflect lower sell-through in certain instances, while appraising simultaneously the model of guaranteed concession payments to airlines, is a plausible one. “I guess it (listing fees) do need a


review – personally I am not a fan and I think they detract from a better and more strategic buyer/supplier relationship,” responds Hayes. “At Alpha LSG, we don’t tend to


operate with listing fees. The main reason for this is the buying team... operates with slightly different product management models then elsewhere in the industry.


Managing product lifecycle “They don’t just source and procure – they category manage too, managing the product fully in its life- cycle. “This not only involves product


development, working on product solutions or exclusive sets that work right for the customer profile, but it is also about the on-going relationship with the supplier.” With that in mind, building more


‘tactical’ relationships straddle more layers than simply procurement and supply, continues Hayes. “It means you can do more


interlinked marketing strategies on the product, agree better crew engagement strategies and review broader supply agreements across the relationship with the supplier.”


Alpha LSG has been working on evolving its modular retail service proposition, resulting in record annual sales for Thomas Cook.


“Personally I am not a fan of listing fees and I think they detract from a better and more strategic buyer/supplier relationship.”


Alan Hayes, Inflight Retail & Managed Services Director, Alpha LSG


He adds that fixed listing or


advertising fees may be viewed as ideal if the function sits squarely on sourcing and procurement functions, as opposed to category management. Looking ahead, the increasing


demand for air travel is positioning Alpha LSG well to capitalise on inflight retail’s potential, but Hayes warns there is work to do to convince brands to stay and sustain inflight retail’s revival. Success, he concludes, lies


in a combination of embracing technology to leverage new product and service innovations, while creating what he labels as the ‘correct’ trinity between airlines, airports and suppliers. «


Thomas Cook cabin winners celebrate at the OMG! Awards held earlier this year.


TRBUSINESS 47


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  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172  |  Page 173  |  Page 174  |  Page 175  |  Page 176  |  Page 177  |  Page 178  |  Page 179  |  Page 180  |  Page 181  |  Page 182  |  Page 183  |  Page 184  |  Page 185  |  Page 186