Why a Concessionaire?

The In-flight duty free service is not only expected by passengers, but an added source of revenue for the airline if done correctly. The most important factor to consider when deciding whether to choose a concessionaire is profit. It has been our experience, an airline-run duty free program has hidden costs not taken into account. They are rarely shown on any P&L or budgets. These expenses ultimately affect the bottom line. Therefore, to ensure the highest profitability from the duty free program, it is best to entrust it to professionals that have run a duty free program as its core competency.

Below are some common additional expenses for an airline running its own duty free program:

  • Cost of Goods
  • Catering Costs
  • Freight & Brokerage
  • Credit Card Processing Fees
  • Salary and Benefits
  • Commissions
  • Cost of Inventory
  • Communication Fees
  • Warehousing Fees
  • Onboard Technology
  • Flight Attendant Training
  • Inventory
  • Purchasing
  • Theft & Losses
  • Added Fuel Burn
  • Chargebacks
  • Programming Technology
  • Flight Attendant Sales’ Incentives