GuestLogix Inc.

GuestLogix Inc.
Airline Weekly

Airline Weekly

February 17, 2010 11:35 ET

Onboard Retailing Report Reveals a Cash Cabin

Airline revenues are evolving (again). In a new report, GuestLogix and Airline Weekly explain how.

TORONTO, ONTARIO--(Marketwire - Feb. 17, 2010) - GuestLogix, Inc. (TSX VENTURE:GXI) and Airline Weekly

The airline industry has undergone quite a transformation in the past decade. Low cost carriers have made significant inroads into major markets. High-profile mergers and bankruptcies have reduced the number of legacy airlines in the Americas and Europe. The volatility of fuel prices has exposed weaknesses in an industry long on fixed costs and relatively static on unit price. Online booking and third-party fare aggregators have ushered in an age of perpetual bargain-seeking among consumers.

All of these changes have led the industry to experience the biggest change to its business model in decades - a growing emphasis on ancillary revenues. And even here, the industry is beginning to transform again with a new report to be released by GuestLogix and Airline Weekly - the Airline Weekly GXI Onboard Retail Benchmark 2009.

GuestLogix, Inc. (TSX VENTURE:GXI), the leading provider of onboard store technology to the airline industry and Airline Weekly, the leading news weekly covering the global airline industry business, teamed up to prepare and distribute the first-of-its-kind report, which demonstrates how the airline industry is looking to augment compulsory fees (like checked baggage charges) with new, consumer-centric revenue generation models.

Specifically, the report analyzes the ways in which airlines in various regions have developed onboard retail strategies, from food and beverage sales to duty free to innovative passenger comfort and virtual goods offerings, creating a more fulfilling onboard experience in the process.

With the advent of in-cabin credit card processing, "cashless" cabins have become the preferred operating style for many airlines, facilitating more sales and offerings of many different items. In effect, this technology has allowed airlines to pursue value-driven ancillary revenue strategies within the passenger cabin itself.

The Benchmark report breaks down the results of these strategies in terms of region, routes, retail models and product category. Compiled and analyzed over the past 15 months, the report covers the in-cabin operations of global and regional airlines representing nearly one-third of the annual passenger trips worldwide. The statistics, analyses and trends included in the report function as a benchmark of onboard retail success for the industry as a whole.

"The airline industry, from a revenue standpoint, is in an innovation-by-necessity period, and every bit of new information counts. Now we have this new, critical data in the industry's most dynamic space - onboard retail. Airlines with the fastest growing non-ticket revenues are commanding attention, as this could - at last - be a step toward sustainable profit generation, with strong respect for the consumer," said Mr. Seth Kaplan, Managing Partner of Airline Weekly.

"These trends indicate that onboard retail has already become a game-changing strategic play for the airline industry," said Mr. Tom Douramakos, President and CEO of GuestLogix. "This benchmark marks a way forward for airlines as well as passengers."

The Airline Weekly GXI Onboard Retail Benchmark is the industry's first holistic snapshot of the status of onboard retailing today. For an industry well accustomed to transformation and reinvention, the onboard retail report is a bright signpost on the path forward.

For more information about Airline Weekly GXI Onboard Retail Benchmark 2009, please visit

About Airline Weekly

Airline Weekly is a subscriber-supported publication, paid for by readers who want a more interesting, more valuable read about the airline business. Each Monday, Airline Weekly reports on who's flying where, new marketing approaches, fleet finance, and critical airline and airport data. And, most importantly, Airline Weekly readers enjoy a critical context, insightful analysis and new ideas found nowhere else. For more information and to download a FREE special report on ancillary revenues, visit

About GuestLogix

GuestLogix is the world's leading provider of onboard store technology which helps airlines build and manage onboard retail operations tailored to their needs and their passengers. Serving 35% of the global airline passenger traffic, GuestLogix has become a trusted partner to airlines around the world. The Company is headquartered in Toronto, Canada and maintains sales and support facilities in the US, UK, Singapore, and S. Korea. GuestLogix is publicly traded in Toronto (Symbol:GXI.V). More information is available at

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