Navigating the Changing Landscape of Onboard Services
As the travel industry enters a transformative era, evolving passenger expectations and emerging trends are redefining onboard services. This blog explores the current dynamics and future trajectory of the industry, focusing on the rise of low-cost carriers (LCCs), the increasing prominence of premium economy travel, and growing trends in buy-onboard services.
It also examines the critical role of digital experiences and personalisation in this evolving landscape and how exhibitors and airline, rail and cruise operator buyers can leverage these trends to enhance passenger satisfaction.
In this article:
The Rise of Low-Cost Carriers (LCCs) and Premium Economy Travel
The emergence of low-cost carriers has been a game-changer in the airline industry, democratising air travel and making it accessible to millions worldwide. LCCs have not only provided cost-effective travel options but have also restructured the passenger experience by introducing customizable travel packages through buy-onboard services. This allows passengers to choose services and amenities that align with their preferences and budgets, enhancing their overall journey.
The premium economy class has simultaneously gained momentum, appealing to travelers who seek comfort and service beyond the basic economy class but at a lower cost than business class. Airlines are investing in premium economy seats by offering enhanced comfort, better culinary experiences, and additional amenities. This trend reflects a broader shift towards personalised travel experiences, as passengers increasingly seek value beyond mere cost savings.
As stated in our article on economy class air travel passenger experience, operators’ focus on enhancing passenger satisfaction and revenue in economy class aligns with broader industry trends.
Further reading:
The Importance of Digital Experiences and Personalisation
In an era where curated digital experiences are pivotal, personalisation has emerged as a cornerstone of passenger satisfaction. Airlines are leveraging technology to offer customised experiences that cater to individual passenger needs. From digital booking platforms to personalised in-flight entertainment systems, the focus is on creating seamless and engaging passenger journeys.
Digital experiences are not only enhancing passenger satisfaction but are also crucial for operational efficiency. With the use of big data and analytics, airlines can optimise their services, reduce waste, and streamline onboard processes, contributing to sustainability and cost-efficiency. As reported, revenue generated via inflight entertainment and connectivity systems (IFEC) is expected to account for 95% of all onboard purchases by 2031, underscoring the importance of digital solutions.
For a deeper understanding of how airlines are integrating digital processes, visit our article on digitising onboard processes.
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Catering to Health, Wellbeing, and Sustainability
The modern traveller is increasingly conscious of health, wellbeing, and environmental sustainability. There is a rising demand for nutritious, sustainably sourced onboard meals that cater to diverse dietary needs, including vegan, gluten-free, and allergen-free options. Airlines and service providers are responding by offering menus with fresh, organic, and locally sourced ingredients.
Sustainability is a significant driver in passenger choice. Airlines are adopting eco-friendly practices, such as minimizing single-use plastics and implementing comprehensive waste management systems. According to the IATA Cabin Waste Handbook, 5.7 million tonnes of cabin waste were generated in 2017, highlighting the urgent need for sustainable practices. These initiatives not only appeal to environmentally conscious travellers but also align with global sustainability goals.
To explore more on how airlines are addressing food and beverage waste, check out our article on food waste and tracking.
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Leveraging Trends: Opportunities for Suppliers and Operators
Onboard and travel catering suppliers and operator buyers have a unique opportunity to capitalise on these trends and work together here, by offering innovative products and services that meet modern passenger expectations.
By collaborating with airlines, rail, and cruise operators to deliver sustainable solutions, suppliers can create competitive advantages in the marketplace. Whether developing digital platforms that enhance passenger interactions or offering eco-friendly packaging, vendors can position themselves as industry leaders.
Personalised marketing strategies can also play a crucial role in increasing brand loyalty and driving sales. For instance, suppliers providing digital solutions that offer personalised travel experiences can significantly enhance passenger satisfaction and retention. For insights into creating a sustainable onboard supply chain, read our article on sustainable products
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Embracing the Future of Onboard Services
The future of onboard services lies in embracing innovation and change. By prioritising personalisation, sustainability, and passenger wellbeing, airlines and service providers can address the evolving demands of the new passenger. As the industry continues to evolve, the focus will be on delivering exceptional experiences that resonate with travellers and contribute to a sustainable future.
For a comprehensive overview of the potential of buy-onboard services, see our article on buy onboard services.
By understanding and adapting to these trends, exhibitors and operator buyers can play a vital role in shaping the future of travel catering and onboard services. Embrace the opportunity to innovate and lead in this dynamic industry, ensuring that you remain at the forefront of passenger expectations and industry advancements.
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Join us at World Travel Catering & Onboard Services Expo (WTCE) to explore the latest trends and innovations in the industry. Register now to connect with industry leaders and discover new opportunities.