KLM plans streamlined inflight offer in 2006

Lorna Strickland

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The Dutch airline plans changes to its inflight assortment in a bid to stimulate growth

KLM Royal Dutch Airlines is preparing changes to its onboard retail strategy this year. The airline plans to gradually reduce its product assortment, making cuts to its range of electronics in particular. It also aims to improve product exposure in the inflight brochure and other media. KLM is also introducing an Exclusive Product of the Month promotion, testing the concept with Givenchy on routes to Asia in February.
 
The airline suffered a fall in onboard turnover in the first half of 2005, which director of onboard retail Koos Kruijswijk attributed to weak economies in Europe.  However sales in the second half of the year picked up and ensured that turnover for the whole of 2005 matched that in 2004.
 
Categories recording the highest growth were confectionery and children's products; with watches posting disappointing sales compared to 2004. Kruijswijk said KLM's retail forecast for 2006 is "slightly higher" than the previous year.
 
Meanwhile the airline has redrafted its cabin crew incentive programme. Up to now KLM has divided commission among all crew per flight. However Kruijswijk said that this wasn't acting as a motivator to drive sales. "We are now running a test with extra crew incentives," he said. "The best selling crew from each region will be rewarded."
 
Kruijswijk also called on suppliers to sharpen their focus on inflight retail. "Inflight is a different  retail  business within the duty-free environment," he insisted. "Suppliers should work on specific airline exclusive products and packaging—solid, compact and recognisable on board."