Enhancing Passenger Experience and Profitability Through Digital Innovation

WTCEby WTCE

In Industry Insights, Trends, Trends & Insights.

A Strategic Path to ROI in Onboard Catering Services

In today’s competitive airline landscape, digital transformation has shifted from an operational upgrade to a strategic necessity. Travelers increasingly demand seamless, personalised, and efficient journeys. Airlines that prioritise passenger-centric digital innovation not only meet these expectations but also unlock measurable returns on investment (ROI) through increased loyalty, higher ancillary revenues, and reduced operating costs.

Digital-First Experiences: Driving Efficiency and Upsell Opportunities

Mobile-first dining and in-flight service platforms are more than just passenger conveniences, they are revenue enablers. App-based meal pre-ordering ensures better forecasting of demand, leading to reduced food waste and optimized catering costs12. QR code menus, beyond their flexibility and hygiene benefits, also open the door to real-time promotions and limited-time offers, creating additional ancillary revenue streams3. Contactless payments further streamline transactions and encourage on-the-spot purchases, particularly for onboard retail4.

Strategic impact: Airlines see both cost reductions (less waste, fewer printed materials) and incremental revenue gains (targeted upselling). These digital-first tools become part of a scalable framework that enhances both operational resilience and profitability.

Hyper-Personalization: From Loyalty Data to Revenue Growth

Data is one of the airline industry’s most valuable assets, and hyper-personalisation is where this asset translates directly into ROI. By leveraging frequent flyer profiles, dietary preferences, and travel history, airlines can dynamically tailor offers—from premium meal pairings to seat upgrades5. Real-time upsell prompts not only enhance the passenger experience but also drive higher conversion rates compared to generic promotions6.

Strategic impact: Personalisation fosters stronger brand loyalty and higher customer lifetime value. Airlines that integrate personalisation into their digital ecosystems create a competitive advantage, making it harder for rivals to lure frequent travellers away.

AI & Robotics: Optimising Back-End Operations

Behind the passenger-facing innovations lies an equally important transformation in airline operations. AI-driven predictive inventory planning minimizes overstocking and understocking, directly lowering catering and logistics costs7. Robotics in food preparation and back-of-house processes improve consistency, speed, and scalability, critical factors as airlines face fluctuating passenger volumes8.

Strategic impact: AI and robotics shift the cost curve downward, creating long-term savings while maintaining service quality. Freed from repetitive tasks, cabin crews can redirect their energy towards passenger engagement, elevating service standards without increasing labour costs.

A Strategic Framework for ROI

Passenger-centric digital innovation is not about technology adoption for its own sake. It is a strategic investment that touches three levels of airline profitability:

  • Cost Efficiency: Reduced waste, automated operations, and streamlined service delivery.
  • Revenue Growth: Higher conversion on personalised upsells and new ancillary revenue streams.
  • Customer Loyalty: A differentiated passenger experience that drives repeat business and higher share-of-wallet.

For forward-looking airlines, the question is no longer whether to invest in digital-first, personalised, and AI-driven innovation, but how quickly they can integrate these tools into their core business model. The carriers that move first will not only win traveller loyalty but also set new industry benchmarks for profitability.

  1. United Airlines. (2021). United Airlines rolls out inflight food and drinks pre-ordering. Future Travel Experience. Retrieved from futuretravelexperience.com ↩︎
  2. Simple Flying. (2022). Do you like to pre-order your meals when flying? Retrieved from simpleflying.com ↩︎
  3. American Airlines. (2022). Pre-order meals in first and business class. One Mile at a Time. Retrieved from onemileatatime.com ↩︎
  4. IATA. (2022). Contactless travel solutions. International Air Transport Association. Retrieved from iata.org ↩︎
  5. ResearchGate. (2023). Rising to New Heights: Altering Airline Brands Over AI-Powered Personalization. Retrieved from researchgate.net ↩︎
  6. Forbes. (2024). Navigating the Skies With AI: How Airlines Are Transforming Air Travel. Retrieved from forbes.com ↩︎
  7. SoftClouds. (2025). Elevating CX for Airlines With AI in 2025. Retrieved from softclouds.com ↩︎
  8. Wikipedia. (2024). Air-Cobot. Retrieved from en.wikipedia.org ↩︎

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WTCE

WTCE

World Travel Catering & Onboard Services Expo (WTCE) is the leading global event for travel catering, onboard retail and passenger comfort. WTCE is renowned globally for providing a platform for innovative suppliers to showcase the latest products and services in passenger comfort, catering and travel retail to help create the ultimate passenger experience.