Earlier this month, Heathrow Express and GuestLogix entered into a landmark deal to offer train vouchers to airline passengers onboard flights from New York City to London’s Heathrow International Airport. While the signing itself is an industry first for Heathrow Express in North America, it represents a substantial opportunity for new revenue growth in airline ‘travel extensions’ the world over. By bundling airport transfers to final destinations, airlines can readily position themselves for a growing revenue share of the airport transportation market revenue opportunity worth more than US $120 billion annually.
It took Heathrow Express 10 years to find the ideal launch pad in North America and it chose GuestLogix. Why? Because “GuestLogix provides us the most convenient and efficient platform to reach most of the US airline passenger traffic to London,” says Diane Burke, Head of Sales and Marketing for Heathrow Express. With one billion passenger trips soon deployed, GuestLogix provides immediate leverage for airlines and transportation service providers serving the world’s busiest airports.
“Travel extensions are a natural bundle with airline travel,” states Tom Douramakos, President and CEO, GuestLogix. “Virtually every passenger needs a bus, train, limo, car rental, taxi or a shuttle upon arrival. Using our Mobile Virtual StoreTM platform, airlines can sell travel extensions and eliminate the drudgery of standing in lines and waiting around to purchase tickets. Together, we sell convenience to enhance travel experience.”
Since GuestLogix first coined the term “onboard retail” in 2004 with the signing of the world’s largest carrier, the business category has evolved rapidly. While it’s easier for airlines to convert to selling food and beverages it will certainly require more time to transition passengers’ behavior to new items that were never before available onboard. Understanding and tapping into logical customer behaviors is key to growing new onboard revenues and providing the path for additional introductions as your airline retailing program unfolds.
The other real impact of travel extensions is that it is virtual merchandising. Thus, the aircraft is no longer restricted to onboard stowage. Virtual inventory means that airlines incur no overhead, have no need to coordinate availability, and can increase onboard profits with no added risk. As merchandise offerings grow so do the airlines’ revenues. Airlines now have the ability to create full end-to-end in-flight offerings with GuestLogix and its growing community of product and service partners.
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