AirlinesBlogOpinion

Introduction by: Peter Marshall

We don’t often cover inflight retail on TRunblocked.com. It’s not that it’s a marginal business – it is not – but there has arguably been precious little progress over the years. But things are changing and this blog on TRunblocked.com features a comprehensive and insightful interview with industry veteran, Anthony Fletorides, who has just established AF Retail Services Ltd, a company dedicated to transforming retail strategies and delivering innovative solutions into measurable success.

Peter Marshall (PM): Anthony, welcome to TRunblocked.com. Today’s conversation is all about the key opportunities that lie ahead for inflight retail. As an observation, it’s one of the industry sectors that always promises a lot, but consistently fails to deliver for all the reasons best known to us all – space, limited offer, silo thinking, dinosaur digitalisation, disengaged staff, cost of entry, no data sharing, ‘leakages’ – the list is almost endless. So here’s a question to kick off – which airlines are getting it right and why?

Anthony Fletorides (AF): Thank you, Peter. It’s an absolute pleasure to chat with you about inflight retail, especially as this is an area I’ve been deeply involved in for many years, working with various airlines, as you well know.

To start with, I think it’s important to acknowledge just how much the world has changed in the past 17 years since I first stepped into this space. More significantly, the past five years, particularly since 2020, have been a real turning point. When airlines were forced to ground their fleets for nearly six months, it had a profound impact on the way passengers’ shop and, by extension, how airlines approach retail.

We have witnessed the transformation of airports into vast shopping malls, offering an increasingly sophisticated retail experience. You could almost say airports have become shopping malls with planes attached. At the same time, local online shopping has taken a huge bite out of the traditional duty-free market, giving passengers more choice and convenience than ever before.

From my perspective, short-haul carriers, particularly low-cost and holiday airlines, seem to be leading the way when it comes to inflight retail. They recognise it as a key revenue stream and a valuable profit driver, rather than just an afterthought. Jet2, for instance, really stands out in the UK market.

Their hard-copy brochure is well put together, the cabin crew are highly trained and genuinely engaged in the retail experience, and they’ve even invested in a bespoke logistics centre to carefully curate their product selection to suit their customer base. From what I hear from industry suppliers, Jet2’s sales per flight far exceed those of most other airlines operating onboard trolley retail.

EasyJet is another strong example. Because their crew are already well-versed in selling food and drinks, they naturally extend those skills to duty-free sales. The use of inflight announcements and clear, engaging promotions helps drive purchases and makes a real difference in uptake.

By contrast, many long-haul airlines have been moving away from inflight duty-free altogether. In some cases, crew members simply don’t have the same enthusiasm for onboard sales, as it’s no longer seen as a core part of their role. As a result, the retail experience on these flights has taken a backseat, and the opportunity for additional revenue is being lost.

PM: OK, let’s drill this down. Given the limited space and the high costs involved with onboard storage, what strategies can airlines employ to better integrate new digital retail platforms?

AF: That’s a really interesting question because, before we even start discussing how airlines can become more digitally savvy, there’s a fundamental shift that needs to happen. Airlines first need to fully embrace retail as a significant revenue stream and integrate it seamlessly into the service that cabin crew provide. It’s a cultural thing. Without this mindset shift, even the most advanced digital tools won’t be maximised to their full potential. Crew engagement is crucial – after all, they are the ones who bring the retail experience to life for passengers and encourage inflight shopping.

Once an airline understands how retail fits into its overall business strategy, it can then explore the right digital solutions that align with its specific needs. The approach will likely differ depending on whether it’s a short or long-haul carrier, as the objectives and customer behaviours can vary quite significantly.

One solution provider that immediately comes to mind is Omnevo. They offer a comprehensive, end-to-end solution that covers everything from online pre-order shopping to an inflight EPOS (Electronic Point of Sale) system, all working together to create a smooth and cohesive customer experience. What makes Omnevo particularly strong is its ability to integrate seamlessly with an airline’s flight schedules, loyalty programmes, and other operational systems, ensuring a streamlined approach across multiple touchpoints.

Of course, not every airline will be looking for a full-suite solution. Some may prefer to adopt individual components, and there are plenty of standalone software packages available in the marketplace, offered either by concessionaires or directly by specialised software providers. These smaller, modular solutions can be a great way for airlines to dip their toes into digital retail without committing to a complete overhaul from day one.

Ultimately, the key is finding the right balance aligning the airline’s retail ambitions with the technology that best supports them.

PM: Yes, I think Omnevo does a great job for their clients. Moving on, do you think legacy IT systems, especially with regards to inflight connectivity, simply get in the way of progress?

AF: That’s a great question, Peter, and I’d say the answer is both yes and no.

Yes, for those airlines that have long standing global partnerships –  they’re often tied into legacy systems that are difficult or incredibly costly to change. In some cases, these systems simply aren’t flexible enough to adapt to newer retail solutions. Another challenge is that certain aircraft types may not have the necessary infrastructure to support onboard connectivity, making it even harder to implement modern digital shopping experiences.

However, no – I don’t think airlines are entirely restricted. Any airline that offers inflight Wi-Fi has the potential to introduce digital retail solutions that enhance the customer experience. Even without overhauling their entire system, they can allow passengers to browse and shop from their own personal devices alongside the traditional duty-free brochure. The key here is leveraging existing connectivity to create a seamless and engaging shopping journey.

In my opinion, the real game-changer is adopting a full end-to-end retail solution. One that integrates every stage of the journey – from the moment a passenger books their ticket right through to inflight purchases and final product delivery. Whether that means pre-ordering items for collection onboard, real-time purchases from a connected inflight shop, or even home delivery options post-flight, airlines need to think holistically about the entire customer journey.

It’s not just about inflight sales anymore, it’s about creating a frictionless, omnichannel experience that allows passengers to shop whenever and however they choose. The technology exists, and for airlines willing to embrace it, the opportunities are huge.

PM: Now we all know that consumer preferences are changing and, as you said earlier, online is everywhere. So just how can airlines make inflight more appealing and definitely more competitive than the recognised preflight and postflight shopping offers?

AF: Peter, it all starts with how inflight retail is communicated to passengers during their journey. The cabin crew play a crucial role here – retail needs to be seamlessly woven into their service, rather than feeling like an afterthought. Engaging inflight announcements, well-timed recommendations, and even subtle prompts can all help grab customers’ attention and spark their interest in shopping onboard. Once you’ve nailed that, then you can really focus on the product selection.

From what I’ve seen, the airlines that truly take the time to understand their customer base and curate their retail offering accordingly are the ones that drive strong sales and, more importantly, deliver a great shopping experience. Of course, there will always be core duty-free staples that remain unchanged – tobacco, alcohol, perfumes and certain cosmetics. But the key is in selecting the right brands and variations that resonate with your specific passengers.

I had first-hand experience with this when working with a former airline partner. We recognised that white spirits, particularly gin and vodka, were top sellers among our passengers. So we adapted our stock accordingly, loading up on these products. The result? Sales skyrocketed simply because we were simply offering what our customers actually wanted to buy.

It’s also essential to work closely with suppliers to create exclusive product bundles, tailored offers, and competitive pricing that appeals to your particular market. Bon Voyage Discovery Boxes are a great example. Both EasyJet and Jet2 have successfully introduced these, designed specifically for their customer demographic (by On the Mark). That said, such initiatives often require a level of scale that smaller airlines might struggle to achieve. But even without large volumes, simply having open conversations with suppliers can lead to innovative and unique retail opportunities.

I personally feel that we’re heading back to a time when inflight shopping had a real sense of excitement, when passengers looked forward to discovering something special onboard that wasn’t easily available in their local market. There’s definitely an opportunity for airlines to tap into that nostalgia while modernising the experience for today’s travellers.

PM: What role do you think data analytics can play in improving the overall inflight retail experience?

AF: Data analytics in inflight retail comes in various forms, each serving a different purpose. On one hand, the retailers themselves have their own systems for sales tracking, stock management, and product performance, which they typically use to optimise their supply chain and ensure that stock levels align with demand. Sometimes this data is shared with airline partners, particularly when it comes to planning product loading for specific routes. However, while this helps with logistics, it doesn’t necessarily transform the customer’s retail experience.

The real opportunity lies in the rich passenger data that airlines hold – insights into demographics, travel habits, and personal preferences. This is where airlines and their retail partners need to work together, using data intelligently to curate targeted product offerings that are tailored to the passengers onboard. Initially, this might have to be done at a high level but, over time, as information sharing becomes more seamless, the potential to create a truly personalised shopping experience will grow.

Beyond just passenger data, crew insights are another goldmine of information. By looking at which routes and which crew members generate the highest sales, airlines can identify patterns and refine their inflight retail strategy. For example, do certain products sell better on specific routes? Are some crew members more effective at engaging passengers in retail? By combining these insights with customer data, airlines can make continuous improvements to both product selection and sales techniques.

Of course, data analytics is only as good as the questions you ask. You need to be clear on the insights you’re looking for in order to extract meaningful, actionable results. But at the end of the day, inflight retail isn’t just about numbers it’s about creating a sense of theatre, engaging customers, and delivering a memorable shopping experience. Unfortunately, this is something many airlines have lost sight of in recent years. The challenge now is to bring back that excitement, using data to enhance not replace the human side of inflight retail.

PM: As a follow up, how then can airlines leverage passenger data to deliver more targeted advertising and more tailored and personalised product recommendations? Are there compliance issues here? And, as an ancillary question, who are the pacesetters here?

AF: As I mentioned earlier in our discussion, Peter, the airlines that truly capitalise on inflight retail are the ones that actively use the wealth of passenger data they gather from ticket sales and ancillary purchases. When this information is leveraged effectively through targeted push emails, app notifications and personalised offers, it can significantly enhance the retail experience for passengers while driving additional revenue for the airline.

Take Virgin Atlantic, for example. Through Virgin Holidays, they have a substantial number of passengers booking package holidays that include flights. All this customer data – travel habits, preferences, past purchases can be funnelled into a more tailored retail experience. Imagine if passengers were notified before they even stepped onboard about inflight products that match their profile, whether that’s duty-free exclusives, travel essentials, or even special onboard promotions. Airlines that take this approach aren’t just selling they’re curating a personalised shopping journey that starts long before the flight itself.

Some companies refer to this as trading, where they create a specific retail offer, push it out via direct marketing, social media, or app notifications, and then track sales performance to measure the campaign’s success. This allows them to refine their strategies, adjusting product selection and promotions based on real customer engagement and buying patterns.

Of course, compliance is a crucial factor in all of this. As far as I understand, the responsibility lies with the data owner. They can market to their own customer base but cannot share personal information with third parties without explicit consent. That’s why you’ll often find airlines auto-opt-in passengers into marketing communications, unless they actively choose to opt out. In some cases, they also allow data to be shared between partnered businesses – for example, between an airline and its inflight retail provider – to create a more seamless shopping experience.

When it comes to ancillary sales, they can take many forms, but for inflight purchases, they tend to be limited to things like:

  • Seat upgrades (especially popular on long-haul flights when there are available premium seats)
  • Extra legroom seats (which can sell well even after boarding)
  • Additional food and drink purchases (a major revenue driver for short-haul airlines)
  • Donations (such as charity partnerships)
  • Transport tickets (for trains, buses, or even excursions, depending on the airline’s retail setup)

From my experiencelong-haul airlines have the greatest success with selling seat upgrades and extra legroom onboard, especially when passengers see that premium seats are still available after take-off. Meanwhile, for short-haul carriersfood and drink sales are where the real money is – a well-structured inflight menu with enticing offers can generate significant revenue per flight.

As for who currently leads the ancillary revenue market, I can’t say with full confidence. It’s a fast-moving space, and different airlines have their own strengths depending on their model and customer engagement strategies.

PM:  Do you think that airlines should expand their partnership base with major retailers or even the tech giants in order to maximise their inflight offer? 

AF: Airlines primarily rely on their retail partners to curate the best possible product selection for their inflight offering. In many cases, there have been attempts to collaborate with well-known high street retailers, bringing established brands onboard to enhance the passenger experience. A good example of this was British Airways’ partnership with M&S for buy-on-board food – an idea that made sense in theory, given M&S’s strong reputation for quality, but ultimately didn’t last in the long run.

For me, this kind of collaboration presents a real challenge. On one hand, partnering with a prestigious brand like Fortnum & Mason and offering luxury hampers onboard sounds like a fantastic way to elevate inflight retail. However, the big question is always margin. Can airlines and their retail partners make a sustainable profit while still offering the product at an attractive price for passengers? In many cases, the numbers simply don’t stack up.

I personally explored the idea of working with Liberty of London, incorporating their iconic prints into a range of exclusive inflight products – small beautifully designed items that would appeal to travellers looking for something unique. These kinds of collaborations can work well, particularly when they tap into a brand’s heritage and exclusivity, but again, the commercial side needs to make sense.

Now, if you’re referring to the possibility of working with Amazon or other major online shopping platforms to support inflight retail, I think the margins become even more of an issue.

While the convenience and vast product range of Amazon are undeniable, their pricing model is built on high volume and low margins – something that doesn’t translate well into the airline retail space where logistics, onboard storage, and limited passenger spend all come into play. At the end of the day, everyone in the chain needs to make money, and when too many players are involved, that becomes increasingly difficult.

PM: Let’s move onto another increasingly important topic. Just how important a role does sustainability now play in product sourcing for airlines?

AF: Peter, the short answer is yes. Sustainability is definitely a growing focus in inflight retail. But there are different layers to this conversation, ranging from airlines wanting to be seen as environmentally responsible to formal sustainability targets that are passed down to retail partners to achieve.

One of the biggest challenges is the logistics of inflight retail itself. Flying products around the world isn’t exactly sustainable, yet it remains the only way to keep the retail model alive. So, while we can’t eliminate that aspect, what we can do is make the products themselves more sustainable. This can come in the form of eco-friendly packaging, a stronger focus on products made from recycled materials, or even working with suppliers that have certified sustainable production methods.

The good news is that more and more brands are thinking this way, which makes it easier for airline buyers to choose responsibly-sourced products without compromising on quality or desirability.

Some luxury brands, like Bottega, have even started actively calling out their sustainability credentials, highlighting how their entire production process is carefully monitored to minimise waste and environmental impact.

This kind of transparency is becoming more common in high-end retail, but whether it truly drives inflight sales is another question. At the end of the day, I think most passengers prioritise product and price over sustainability. If they find something they love at a great price, and it also happens to be eco-friendly, then that’s an added bonus but it’s rarely the deciding factor in an onboard purchase.

PM:  Is there a place for genuine airline loyalty when it comes to inflight? Isn’t this business just an ‘also ran’ when it comes to an airline’s mindset, given all the other areas of non-aeronautical revenue they are managing to eke out from their business? As you know, a number have ditched inflight retail altogether.

AF: Peter, I definitely think there’s potential here, but it ultimately comes down to how well the crew and passengers engage with the loyalty programme. Some airlines already have visibility on their loyalty passengers through booking data and seat manifests. And when they conduct an inflight sale, they can proactively offer passengers the chance to earn points or miles on their purchases. However, this only works effectively if the process is properly communicated and seamlessly integrated into the checkout experience inflight.

There’s also the technical side to consider. Many airlines have the ability to accept loyalty card purchases offline, allowing passengers to redeem their points or miles for inflight purchases. A backup credit card can even be taken in case the loyalty account doesn’t have enough balance to cover the transaction. When there’s real-time integration with the loyalty programme –  particularly on flights with Wi-Fi connectivity – airlines can verify balances instantly, making the process even smoother.

However, the challenge often lies in internal alignment. Too often, the loyalty team and the retail team operate in silos, missing the opportunity to connect the dots and create a more seamless, revenue-generating experience for both passengers and the airline. When these teams work together, the potential to drive engagement and increase inflight sales is huge.

Ultimately, the airlines that are willing to engage with their passengers, properly train their crew and equip them with the right tools – they are the ones that can still generate strong inflight retail revenue. There’s definitely a shift happening in 2025, with some of the big legacy airlines that previously removed inflight retail now exploring ways to bring it back. It’s clear that the traditional model needs a rethink, but with the right approach, there’s still a valuable opportunity to make inflight retail a success.

PM:  Just drawing the strands together, what are the three key things you believe the industry should be looking at to drive inflight sales?

AF: To truly make inflight retail a success, airlines need to embed it as a core part of the onboard service – not just an add-on. This starts with ensuring that crew fully understand its importance and feel confident in delivering a great retail experience. The key is dedicated training and engagement. Airlines like Jet2 and EasyJet set a fantastic example by investing in comprehensive training days with suppliers and even hosting awards to recognise top-performing crew. Their success in this area is no coincidence – it’s the result of a well-structured approach that motivates and equips their teams to sell effectively.

Beyond training, airlines need to invest in the right technology to make the entire retail journey seamless and engaging from the moment a passenger plans and books their flight, through to check-in, pre-purchase opportunities, and ultimately the inflight retail experience itself. A well-trained crew, supported by intuitive technology, can transform onboard shopping into an enjoyable and effortless part of the journey.

Of course, the most fundamental aspect of all is giving customers what they actually want to buy. Too often, airlines overlook duty-free allowances and miss opportunities to offer products that deliver genuine valueCompetitive pricing, the right product mix, and a seamless shopping experience – these are the basics, yet they are sometimes forgotten.

Peter, thanks for such a great discussion and for raising such insightful questions. Hopefully, some of these ideas will be put to good use, and we’ll see the inflight retail industry evolve in a way that benefits both passengers and airlines alike.

About Anthony Fletorides

Anthony Fletorides is a prominent figure in the duty-free inflight retail industry. With a career spanning several decades, he has made significant contributions to the field, helping to shape the way airlines approach onboard retail.

Fletorides began his career in the fashion retail industry and moved over to aviation where he quickly recognized the potential of inflight retail as a revenue stream for airlines. His innovative approach to product selection and marketing strategies has been instrumental in driving sales and enhancing the passenger experience and working with excellent partners to help deliver the total package.

Throughout his career, Fletorides has worked with several major airlines, implementing successful duty-free programs that offer a wide range of products, from luxury goods to travel exclusives. His expertise in building sound relationships and trusted product offerings has helped airlines remain competitive in the market, while his focus on customer experience has ensured that passengers enjoy a seamless and enjoyable shopping experience.

Fletorides has also been at the forefront of adopting new technologies in inflight retail. He has championed the use of digital platforms to promote products and facilitate purchases, making it easier for passengers to shop from their personal devices for either pre-order to their seat or home delivery of selected products.

Contact details. Email: anthony@afretail.co.uk.

Peter Marshall

Founder: trunblocked.com/Marshall Arts
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