Onboard retail solutions Print

Gate Gourmet Onboard retail solutions

Airlines and railroads are increasingly turning to onboard retail services to boost ancillary revenue and improve customer satisfaction. These services include food, snacks and beverages for consumption onboard, as well as retail products and ‘virtual’ merchandise, such as lottery tickets or rail passes; handling.

gategroup, with its Gate Gourmet brand in the forefront, is a leader in this rapidly growing area. At the start of 2010 we were managing retail onboard programs for 10 airlines on three continents, having more than 600 aircraft under management and retailing to over 110 million airline passengers annually.

gategroup offers the best retail platform onboard for a full spectrum of products. Our comprehensive suite of services ranges from specialist technology and systems to the provision of modular retail services all the way to fully operating a customer’s entire onboard retail operation including all the required logistics, on a fully outsourced basis.

The cornerstones of this capability are:

1. Adequate & tailor-made technology:
One key way in which we create value for our customers and differentiate gategroup from our competition, is our integrated IT solution. Our solutions have been implemented and continually developed over many years. At the core of our approach to technology is seamless integration with airline operating systems, forecasting capabilities, ground based warehouses & distribution requirements.

As a major caterer we are ideally positioned to provide an integrated end to end system with a well functioning back-office and at the same time manage & control the operations. More and more customers are recognizing the power of this combination.

eGate Solutions has developed TS4, the most comprehensive IT system controlling the entire onboard retail value chain. Visit eGate Solutions and find out more about TS4.


2. Professional services & activities:
Our successful onboard retail operation is based on eGate Solutions’ TS4 system and typically consists of the following service modules. These can be provided independently:

Range Management:
gategroup will determine the optimal product range for onboard retailing for your route system.

Operations Management:
We are uniquely positioned to combine our specialist Range Management know-how with the operational requirements of your network operation

Cash Management and Reconciliation:
Strong systems and operational controls are required to contain leakages and losses. TS4’s integrated onboard retail systems provide all the tools needed to exert such strong control and immediately identify discrepancies between reported sales data, physical product inventory and actually banked cash and credit card receipts.

VAT:
Another particularity of the onboard retail is the very tight and complex tax regulations which require rigorous tax administration capabilities. gategroup is at the forefront of addressing these challenges successfully and holds valid VAT registrations in over 25 jurisdictions worldwide enabling it to seamlessly fulfil this added complexity also for airlines with wide ranging international networks.

Professional Design:
Passengers need to know what is being offered onboard and you need to convince them to spend money onboard rather than in the terminal. Through our potmstudios design center, we will provide creative and appealing communication about your offering, whether through menu cards, catalogues or your onboard magazine.


3. Risk sharing & outsourcing solutions
As airlines focus on the core of their business, gategroup is the perfect outsource partner to operate the entire onboard retail program on a turnkey basis. Under this arrangement we will share and/or assume the retail risk inherent to the business, be it through profit-sharing agreements or by outright acquisition of a retail concession. Ninety percent of gategroup’s onboard retail airline partners have elected to operate this outsourcing model and gategroup is pleased to develop tailor-made business models that will provide your desired risk, reward and/or control profile.


Find further details about one of Gate Gourmet’s case studies here.

To learn more about how Gate Gourmet can help enhance your onboard offering, please contact us.