Inderscience Publishers

The airline retail industry: a customer`s perspective

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Airline in-flight retail has been a service offered on-board aircraft since the commercialisation of air travel in the 1950s. The airline retail is a growing industry with global sales accounting for almost $2.7 billion in 2008. As conventional revenue streams come under pressure, airlines are increasingly seeking to maximise ancillary revenue streams to increase profitability. This research explores the factors that influence passengers' expenditure on retail in-flight, while comparing the results with the shopping patterns that travellers exhibit in airport duty-free stores, which constitute airlines' main competitors for retail sales.

Keywords: airline retail, airline sales, airport duty-free, in-flight retail, in-flight sales, passenger expenditure, passenger spending patterns, retailing, ancillary revenue, airlines

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