Inflight technology report 32 33 34 35.indd
Transcription
Inflight technology report 32 33 34 35.indd
32 INSIGHT & ANALYSIS INFLIGHT TECHNOLOGY REPORT Smart solutions Inflight concessionaires and payment solutions providers are working together on new tablet-friendly payment solutions systems in an effort to increase inflight sales and engage flight attendants. Kapila Gohel assesses the move and its merits GuestLogix has partnered with Finnair for a Samsung Tab POS T he digital revolution has meant smartphones and tablets have become indispensable communication devices in the modern age. Whether at home or on the road, people have become attached to their devices and many see it is as a sign of revolutionary service when offered a tablet to make purchases in the retail world. The service industry has embraced the digital age—from companies such as OTG offering customers the possibility of ordering food and drinks via tablets to those that have gone even further offering augmented reality allowing customers to “try on” products such as jewellery, watches and even cosmetics. The inflight retail industry, which has long relied on pointof-sale (POS) devices dedicated solely to capture sales, has made significant tracks in the move towards smartphone and tablet POS solutions. Global provider of onboard retail and payment technology solutions GuestLogix Inc has recently partnered with Finnair to deploy its Androidbased point-of-sale (POS) solution via the Samsung Tab and GuestLogix certified payment peripherals. On the Tab Last year Finnair partnered with Gebr Heinemann for its inflight and preorder duty-free sales and procurement operations, and the new solution will allow Finnair’s cabin crew to sell dutyfree items and enhance the service provided to passengers. The mobile POS solution offers sophisticated promotion and commission management capabilities and can actively configure complex promotions prompting consumers Duty-Free News International • July 2015 Inflight technology report 32 33 34 35.indd 32 to buy more products, or specific types of products onboard. For example, the device can be configured to prompt cabin crew to know that if a passenger buys a specific product, they’re also likely to buy another product and can also be used to actively manage and configure commission payments to incentivise crew members to sell certain products and secure more commission. The device also has options making it speedy to serve passengers, and is simple to use from the passengers’ point of view. From their seat, passengers simply have to enter their PIN securely on the back of the device and return it to a cabin crew member. GuestLogix head of global sales Andy Archer tells DFNI: “The Samsung Tab is a more modern, multi-use platform. Traditional onboard sales have been handled through a POS device that was dedicated solely to the capture of a sale. “The new multi-use Androidplatform device has more of the features commonly found on consumer tablets and devices, and can be used for many things besides POS—a primary advantage for an airline. It can be used to not only capture a sale, but also to store, read and update onboard flight and training manuals, operational forms and other activities,” he explains. The crew can use the device to record damage to a seat, for example, or identify a problem in the cabin that needs attention upon landing. Because it’s a consumer device, Archer points out that airlines benefit from greater performance and more modern platform architecture, translating to improved speed and efficiency compared to traditional POS devices. www.DFNIonline.com 07/07/2015 10:41:41 INFLIGHT TECHNOLOGY REPORT INSIGHT & ANALYSIS 33 “ Speed of service is critical to offering ancillary products onboard, and the primary benefit of this new technology is speed ” Andy Archer GuestLogix head of global sales Tablet POS systems address the challenge of processing speed The primary challenge the new system addresses is processing speed. Archer says: “More and more airlines are selling food and beverage onboard rather than offering them as part of a standard seat package, and they’re also selling duty-free items onboard. That evolution requires crew members to handle more transactions in the same time period in the air and as a result, the flight attendants are under pressure to serve everyone, sell more products, and process more transactions and payments. Speed of service is critical to offering ancillary products onboard, and the primary benefit of this new technology is speed.” Secondly, Archer feels it is important to ensure airlines have solutions that can handle multiple, current payment types that adhere to payment guidelines and cater to customer expectations. “In Finnair’s case, it was beneficial to move from a credit card magnetic stripe solution for processing payments to a Chip & PIN solution, where a passenger enters a PIN on the device to complete the transaction. This takes slightly longer since the flight attendant has to physically hand the device to the consumer to enter a PIN number, so it’s important to have a nimble solution that can deal with speed requirements and support a variety of payment types,” he explains. Online onboard payment. Our airline customers are thinking of creative ways to use onboard WiFi technology to increase the number of products sold—games, digital lotto cards, magazines, all sorts of products that can be offered digitally—and to open omni-channel opportunities for ancillary revenue, retail transactions, and passenger self-service. Despite the advent of onboard WiFi, snail-pace connections and exorbitant costs means even those passengers with itchy fingers have deferred to inflight entertainment to keep them amused instead of paying high fees to stay connected in the air. DFNI asks inflight concessionaires and payment solution providers their thoughts on the how WiFi complements the inflight technology suite and increases sales and whether they have felt an impact on business. Joe Harvey Baptiste Duguit Tourvest Inflight Retail Services head of new business development Joe Harvey: WiFi is limited to only a few airlines currently. Tourvest continuously investigates trends and looks to harness new technology. At the current time we are focusing efforts on the next generation POS units which do not require WiFi to operate effectively. This focus is constantly monitored and if we see a requirement, then investment will be made in WiFi technology and implementations. GuestLogix head of global sales Andy Archer: Onboard WiFi, whether it’s a permanent connection to the ground or not, has certainly boosted sales because it opens up entirely new channels and increases the number of products available for sale onboard. Different airlines have different strategies for WiFi. Some want to provide their passengers, especially business class passengers, with unlimited access to internet services, while low-cost airlines might view onboard WiFi as a retailing opportunity and make it available for sale onboard or create a portal through which passengers can purchase ancillary items. We have airline customers in Europe talking about integrating onboard WiFi service with flight attendant-driven retail channels, so that an item purchased through your own device or seatback interface—food, beverage, duty-free item—can be delivered by a flight attendant who then handles the www.DFNIonline.com Inflight technology report 32 33 34 35.indd 33 Dutyfly Solutions marketing and commercial director Baptiste Duguit: None of our current airlines offer an advance WiFi on-board. In Dutyfly Solutions’ vision, WiFi on-board will be used to improve the inflight shopping experience. Different materials, more content, no credit card limit—it should be seen as an opportunity more than a threat. ECR CEO Simon Pont: Once WiFi is truly available we envisage this would boost sales among frequent flyers especially enabling loyalty schemes and on-ground duty-free sales. July 2015 • Duty-Free News International 07/07/2015 10:41:46 34 INSIGHT & ANALYSIS INFLIGHT TECHNOLOGY REPORT Going the extra air mile Now companies such as Media inMotion, are taking things up a notch with the recent announcement the company is developing an Apple Watch App for Monarch Airlines allowing passengers to order food, beverages and duty-free items from the comfort of their seat at any time during the flight. The MPlayer Apple Watch App is expected to be deployed in the coming months. It is designed to work seamlessly with Monarch’s existing Mplayer inflight entertainment app to enable passengers using the smart watch to browse and order food, beverages and gifts. The advantage lies in the app’s ability to display on a second screen without interrupting the passenger’s inflight entertainment. Passengers may already be streaming to their primary personal electronic device from Monarch’s advanced wireless One of the key arguments in favour of using an Android platform is the ease in which cabin crew can quickly pick up how to use such devices. “This is a really important point, because when we launched the device with Finnair, we found it required very little training. The technology was completely new to the crew, but because it was on an Android platform, crew members intuitively knew how to use it,” says Archer. Positive sales Inflight concessionaire Tourvest Inflight Retail Services, which operates on British Airways, South African Airways and Kenya Airways, is in fact developing its own in-house developed EPOS (Electronic POS) software, which will initially be available on the Apple iPad, along with a printer and integrated Chip & PIN payment terminal, including contactless technology. Head of new business development Joe Harvey tells DFNI Tourvest predicts that rather than crew seeing inflight sales as a mere “task”, they will soon “want” to use the service. “The work is suddenly made interesting, interactive, and the technology looks great so they want to show it off and be seen using ‘modern technology’ in front of passengers,” he explains. Feedback received from crew on its prototype has been only positive.“After •Destination weather Orders can be prepared for delivery to your seat onboard entertainment system, also provided by Media inMotion. The app is still in development but in practice, cabin crew will be notified of the passenger’s Watch App request via their connected terminal. The order can then be prepared seeing the device, all they wanted to know was when they would see it on board. Tourvest believes the launch of the new technology will mean crew will actively want to use the service, inspiring a culture of positive sales enthusiasts,” he says. Currently, Tourvest’s existing platform is limited to a Windows PDA-based device. “Although perfectly serviceable, the units are now dated, do not offer an easy upgrade path, with repair costs not entirely within its control,” says Harvey. “The new technology has the distinct advantage of being developed in-house. This opens up a huge door for both Tourvest and its airline The Monarch MPlayer Apple Watch App v1.0 currently features •Food and drink ordering •Order history •Flight status partners. Because there are only two parties involved. Ideas can be managed, designed and implemented much faster than previously. The EPOS experts are now Tourvest’s experts, so knowledge can be used to directly support the airlines in a fast-paced, agile manner.” Familiar environment The new devices will be: lighter; run up-to-date Apple platforms, allowing for easy upgrades and improvements; capable of processing Chip & PIN transactions; speedier transactions and operate a “familiar Apple environment”. One of the cost advantages of developing the new system in-house for Tourvest is internal expertise is utilised to design the best possible software for end users. “Our business is dedicated to the travel-retail environment, so we know what users would like to see and how they would like to operate,” says Harvey. Since Tourvest will own the intellectual property of the software, it can offer competitive advantages for its customers as the cost of licence fees to use the software is completely within its control. Meanwhile, improvements to the software and hardware offering is completely within Tourvest’s control, meaning new products and features can be offered much quicker and be delivered in a manner that suits the customer. Monarch is working with Media inMotion for an Apple Watch App Duty-Free News International • July 2015 Inflight technology report 32 33 34 35.indd 34 for at-seat delivery and payment. Add-on functionalities currently in development: •Push notifications: Passengers can be alerted to special offers or “flash sales” through the Watch App. •Smart wallet compatibility: Passengers can use Apple Pay or other smart wallet technology to complete payment. • Seat chat: Passengers can allow fellow travellers to connect during the flight. •Home-delivery: Customers can purchase from an expanded range of products which can be delivered to homes or hotels, or picked up at the airport. •Device handoff: Watch App users will be able to start an order on one device and continue on another. www.DFNIonline.com 07/07/2015 10:42:06 INSIGHT & ANALYSIS INFLIGHT TECHNOLOGY REPORT 35 Dutyfly Solutions, the inflight concessionaire for airlines such as Air France, Iberia, Alitalia and Air Caraïbes is also working on a new EPOS system in-house that will be adaptable to a touch-screen tablet. The company has its own in-house team of developers that works on the front and back office of its software solutions, ensuring custom-designed software for the EPOS. Through the in-house expertise Dutyfly Solutions is able to easily adapt and change software to meet with an airline’s needs. Inflight vision Dutyfly Solutions’ focus over the past year, marketing and even operational actions, has been aimed at improving the inflight shopping experience. “From product selection (more changes, different types of products, closer to trends) to flight attendant engagement, we propose programmes to the airlines that aim to turn passengers into buyers,” says marketing and commercial director Baptiste Duguit. Key to improving the inflight shopping experience will be improving the EPOS and digital media. “Dutyfly Solutions has integrated it within its inflight vision: we provide our airlines with latest services and technology when it comes to purchasing on-board; we work with them on a multi-channel approach, connecting the passenger on all touch-points (i.e. pre-order) and technology is a great support in customising our offers and improving crew engagement,” explains Duguit. “ ECR feels an all-in-one POS system works better for inflight retail any of our solutions, can be tailormade by implementing some of the airline’s business applications, such as flight feedback software, the onboard catalogue and promotional materials for products sold inflight.” In addition to the new EPOS, the concessionaire is working on a digital catalogue that can be linked to the airline’s Inflight Entertainment System. This will provide new business opportunities, adding product promotion and From product selection (more changes, different types of products, closer to the trends) to flight attendant engagement, we propose programmes to the airlines that aim to turn passengers into buyers Baptiste Duguit Dutyfly Solutions marketing and commercial director Dutyfly Solutions’ in-house team is currently working on a new EPOS set to launch in the fourth quarter of the year, which will be adaptable to touch-screen tablets. Duguit says: “The new EPOS is modern, easy to use and will have a customisable interface. It will have greater connectivity as it will be compatible with all Bluetooth and WiFi devices. The new EPOS, like www.DFNIonline.com Inflight technology report 32 33 34 35.indd 35 ” marketing that an airline can sell. Duguit said the company had already proposed the catalogue for Iberia and Air France. “Our team is working closely with both airlines in order to reach the next steps of this complementar y onboard material. Furthermore, Air Caraïbes is also offering to business class passengers a tablet with a digital version of the catalogue including additional content,”he notes. Newcomer into the inflight retail space ECR, which currently works with Rail Gourmet, part of SSP and Newrest and in airport travelretail with World Duty Free Group, launched new onboard payment solution, AirPoS, in March. The company is in advanced talks with two national carriers and a low-cost airline and expects to go live with at least one during the third quarter of the year. CEO Simon Pont feels that while many airlines and inflight concessionaires are moving towards tablet-based solutions, the traditional handheld POS will prevail. All-in-one The AirPoS can run on either the ECR Go! all-in-one hand-held terminal device or ECR X2! tablet. “Alternatively, it can run on other tablets and devices but we strongly recommend the use of products that meet the exact requirements of onboard retail,” says Pont. The Go! all-in-one mobile handheld terminals can be used throughout the aircraft and process Chip & PIN card transactions either online via onboard WiFi or offline, where there is no air to ground connectivity. These devices can issue instant legitimate receipts and have barcode scanners. Pont says: “We are finding flight attendants prefer this lightweight and truly mobile device over the alternative which is a separate tablet printer and pin-pad. The limitation so far has been the lack of a truly all-in-one reliable and Payment Card Industryapproved device and we believe the Go! is the answer to both IT and retail requirements.” Pont points out tablet-based solutions have the disadvantages of low battery power and require WiFi and/ or GPRS to allow communications with a head office. “Our corporate opinion is that it tends to be the crew that want these devices. They are certainly available, but you also need a credit card terminal to take the payment and then you need a printer—it becomes less attractive than an allin-one solution,” says Pont. Despite the aforementioned challenges, the results will speak for themselves once these products are launched with inflight concessionaires. Space constraints onboard may not help the argument for using tablet-based solutions as opposed to an all-in-one offer, however, the merits of a tablet in terms of crew engagement, ease of use, speed of service and customisation could be what makes this digital revolution a game-changer for inflight retail. July 2015 • Duty-Free News International 07/07/2015 10:42:07