In debate: Is F&B technology the solution?

The race is on for touch-less inflight service for F&B. Julie Baxter asks Stefan Patermann, ceo Retail in Motion, is technology the saviour for onboard catering now?

Covid-19 concerns have forced airlines and caterers to rethink food & beverage.

Could technology help overcome service delivery fears and rebuild inflight revenues?

SP

Airlines want to deliver a service but right now passengers do not want to talk and interact with the crew. Pre-order/preselect technology allows passengers to choose and, if relevant, pay for F&B before boarding, and the only moment of interaction is at delivery. The industry has been talking about the benefits of this for while but now a digital facility can really solve a huge problem for airlines post-COVID-19.

WHY HAS THIS SOLUTION BECOME SO RELEVANT NOW?

SP

The COVID-19 crisis has seen inflight magazines and menus removed for hygiene reasons, and technology is the obvious way to showcase what is on offer and build revenues. Many airlines liked the idea of all this before COVID-19 but now they love it. For some the driver is ancilliary revenue but for others it is the desire to find a COVID-safe solution to the service they offer, and a determination to bring service back onboard in a normal but safe way.

ARE AIRLINES ACTIVELY PURSUING THESE OPTIONS AT THE CURRENT TIME?

SP

Yes. We were already working with 40 plus airlines at various levels of complexity from running EPOS systems based around smart phone technology for quick sales onboard, to much more comprehensive tech solutions supporting better interactions, crew managed services and efficiency in operations. Now around 70% of our airline clients are looking to extend their F&B/retail technology systems. They are looking at integrating pre-order or pre-selection (for complimentary service) into their booking process, developing inflight sales through IFE and

RETAIL INMOTION THIS YEAR WON THREE ONBOARD HOSPITALITY AWARDS FOR THEIR INFLIGHT SERVICE PROVISION

implementing contactless payment systems. Solutions can be embedded within the booking and check-in processes, and/or delivered through a standalone e-commerce platform that’s fully branded. Passengers pay by credit card or our payment gateway, vPay, which then passes the transactions directly to the payment acquirer.

HOW DO THE TECH SYSTEMS IMPACT SERVICE DELIVERY FOR F&B?

SP

Ryanair and Alaska Airlines are among those using the pre-ordering system successfully and Ryanair, Eurowings and Aer Lingus have also gone contactless for inflight retail. This is likely to be a continuing trend. All orders are sent electronically to the logistics operation of the airline, packed, labelled and loaded as needed for the flight. Crew can view the pre-orders or any inflight F&B Order2Seat transactions on their own devices and simply retrieve and deliver to the passenger.

DO PASSENGERS LIKE THESE SYSTEMS?

SP

The consumer has become so much more tech savvy during the crisis. They are also much more engaged with e-commerce opportunities and this is something airlines can build on. Onboard wifi and IFE integration open opportunities for them to browse, select and pay from their own devices with minimal cabin crew interaction. They like it.

BUT DON'T TECH SOLUTIONS TAKE A LONG TIME TO IMPLEMENT ONBOARD?

SP

Actually these solutions can be rolled out across an airline in as little as eight weeks. Bespoke elements and branding may take longer, but pragmatic airlines are much more focused on a fast turn-around now.

IS THE COST REALLY VIABLE RIGHT NOW?

SP

APEX research showed digital transformation is something airlines are still investing in but we also offer commercial deals that share the risk and require no up-front investment. We work as a partner and share the revenue over the longer term if airlines prefer. No one right now has a lot of money to spend but they are willing to invest in things that support social distancing issues and create the new normal. F&B technology does just that. •