Friday 17 December 2010

Qatar Airways and Onboard Transactions

“We are delighted with the success of this project as we have been working very closely with our partners DataFlight Europe for the past several months. When Visa and MasterCard had put restrictions on the limit on the acceptance of credit for their cards, there was a gradual decline in on board sales as customers were restricted to using cash or a combination of additional cards. As such, we were not in a position to offer a credible selection of products we had in mind to compliment our first- and business-class profile." - Senior Vice President of Qatar Airways In flight Duty Free and Qatar Duty Free.

A new handheld GPRS device is rolling out across Qatar Airways fleet in the coming months. I wonder how this will change the on board retail environment since there will be no limitations for card transactions. Personally I don't think about my duty free purchases beyond cologne or small retail items, however now that the technology is in place to remove any transaction size bottle neck there could be larger implications for the supply and demand dynamic between duty free products sold on board and consumer demand. In addition to this most flagship Asian carriers are rolling out services that will provide connectivity through smart phones, laptops and Blackberry's. 

Perhaps full communication/connectivity capability and unrestricted credit/debit card usage may bring about an evolution to the on board retail environment.

Below a picture of the The Onboard Trader technology that removes limitations on credit card transactions.

 

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