Guestlogix Blog: Passenger Experience & Ancillary Revenue Content

2025 Retail and Payments Trends from Our Customers (and How They're Winning)

Written by Rachel Hunt | Dec 11, 2024 4:08:41 PM

This article was originally posted on Medium.

Let’s face it: the airline industry hasn’t exactly built a reputation for leading the charge in retail innovation.

Our inboxes remain a wasteland of half-baked webinars sporting titles like “NDC Made Easy”—a standard introduced in 2012. (Yes, that was 13 years ago. And yes, we’re all feeling old now.)

Scanning the 2025 Aviation Trends that are already hitting blogs and LinkedIn affirms tired themes: nostalgic travellers yearn for the “Before Times” when our planet didn’t seem so tragically complicated (duh), consumers demand personalized retail experiences (the case since targeted social ads became ubiquitous in the mid-aughts), and, after realizing the “return to normalcy” might mean a different and less-interpersonal sort of normal, passengers use travel to seek reconnection with humanity (an estrangement from one another I think we all have felt for years now).

A quick scan of the 2025 Aviation Trends already hitting blogs and LinkedIn reveals the same old themes: nostalgic travelers yearning for the “Before Times” when our planet didn’t seem so tragically complicated (duh), consumers demand personalized retail experiences (yawn—this has been true since 2006 when Zuckerburg ubiquitized targeted social ads), and a desire to use travel to reconnect with humanity after realizing the “return to normalcy” might mean a different and less-interpersonal sort of normal (hasn’t this been a trend for the last three years?).

This isn’t that kind of trends piece.

As we edge into 2025, Guestlogix’s partners are charting far more exciting — and far less predictable — paths. The difference? These trends aren’t just lofty ideas; they’re already brought to life with solutions ready to capitalize on the shift.

 

Trend #1: The AI Data Hype Will Get Airlines Stuck—Unless They Start Small

Artificial Intelligence is the industry’s new darling, and honestly, it’s easy to see why. AI promises a future where every passenger gets the perfect offer at the perfect time, crews know exactly what to serve, and product teams can load planes with precisely the right inventory.

But here’s the hard truth: chasing big AI projects without first getting the basics right with the data you already have is like trying to fly without fuel—impressive on paper, but you’re not going anywhere.

The good news? You don’t need a multi-million-dollar AI initiative to start seeing results. Airlines can unlock value by leveraging the data they already have. For example, analyzing historical purchasing patterns can optimize inflight inventory without requiring massive algorithms—and leveraging retail partners like Guestlogix means you can access aggregated anonymous datasets across similar routes, times of day, and passenger profiles. And those basic insights? They’re the low-hanging fruit that get you immediate results, like fewer spoiled hot meals and higher conversion rates on pre-orders.

The same logic applies to passenger personalization: Airlines don’t need intricate, individual-level passenger data to deliver meaningful, tailored offers. Using cohort-based data—factors like when they’re travelling, where they’re travelling to, and time relevant to flight—airlines can craft offers that feel personal and helpful, boosting both loyalty and revenue. This approach to “small-p personalization” delivers quick wins while building the datasets needed for future generative-AI breakthroughs.

Let’s be clear: AI is transformative, but it’s not plug-and-play. Starting small with immediate-impact projects is the best way to unlock value now while laying the groundwork for bigger innovations later. Otherwise, you risk spending years—and millions—perfecting an AI model while your competitors rake in revenue with smarter inventory management and simple, effective personalization.

 

Trend #2: Self-Service Is the Trojan Horse for Total Passenger Engagement

Self-service retail isn’t just about selling more Mr. Noodles: it’s the gateway to creating a seamless, connected travel experience. Yet many airlines still limit their focus to crew-driven, cabin-based transactions, leaving significant revenue on the table.

Once a passenger uses self-service—whether to pre-order a meal or buy inflight snacks—they’ve effectively opened the door to a trip-long relationship. Now, instead of annoying guests with generic emails doomed to low clickthrough rates, airlines can deliver real-time, context-aware offers informed by the “small-p personalization” we just discussed. Imagine sending passengers a line-bypass option at a busy gate, offering VIP lounge access during an unfortunate delay, or arranging private transfers to skip crowded taxi lines. These tailored, touchpoint-based offers add real value and foster loyalty.

And that doesn’t even touch on the inflight experience, where airlines have a unique monopoly on sales and services. In a world where “WAIT” is a four-letter word, this exclusive window of opportunity defines guests’ perceptions of their chosen airline, becoming both an opportunity and a responsibility to provide exceptional service. Whether in the airport or aboard the aircraft, airlines are uniquely positioned to own these spaces in ways that Uber, Expedia, and Booking.com simply can’t.

And no, you don’t need to reinvent the wheel. Start with the basics: self-service ordering that works offline, unobtrusive upselling, and seamless transactions and fulfillment. The more you engage passengers during their journey, the more insights you collect—and the more personalized (read: profitable) your offers become.

 

Trend #3: High-Speed Inflight WiFi Won’t Save You—And That’s OK

Inflight WiFi is expanding rapidly, but let’s be honest: it’s not a silver bullet for solving onboard retail—or even onboard payments. While airlines pour billions into upgrading their fleets, they’re quietly ignoring the elephants in the cabin: some chunk of aircraft won’t see these upgrades anytime soon (or ever), connectivity remains spotty over vast regions like oceans, and even the most ironclad systems occasionally fail.

Here’s the risk: some airlines assume that WiFi will guarantee seamless in-flight payments, app-based shopping, and glowing passenger reviews. The reality? You need solutions that work when WiFi doesn’t. One of our airline partners put it best: “A one-in-a-million event isn’t rare when you fly hundreds of millions of passengers—it’s happening twice a week.”

That’s why we prioritize building for the lowest common denominator—in this case, no inflight WiFi or cellular data. Features like passenger self-service must perform anywhere, on any plane, with or without internet, because crew and passengers deserve consistency. Dependence on properly outfitted planes and the ephemeral whims of Starlink formations isn’t a reliable plan for the future.

"A one-in-a-million event isn't rare when you fly hundreds of millions of passengers—it's happening twice a week."

So, yes, high-speed WiFi is exciting. But the airlines that thrive long-term will be those investing in platforms that work no matter what. Future-proofing means consistently delivering a great experience in the worst scenarios, not just the best.  

 

Trend #4: The Looming Death of Card Readers—But Don’t Toss Them Out Just Yet

In the cabin, physical credit cards are heading toward extinction, much like cash before them. Tokenized payments via mobile wallets are the new standard, and airlines are already pivoting. Just as Guestlogix helped airlines like WestJet phase out cash in most parts of the world, carriers like United have already ditched physical credit cards entirely, while others, such as Alaska Airlines and Delta, are promoting tap-to-pay through passenger and crew devices—no card readers in sight.

The shift is transformative, but not without hiccups. There’s still work to be done to establish an implementation that’s truly a smooth and intuitive guest experience (especially when it comes to phasing out cards entirely). However, the writing is on the wall: card readers are on the decline, and passengers are eager for the convenience and enhanced security of tokenized payments.

It’s a trend we’re fully aligned with in our product roadmap, where we’re doubling down on the payment model passengers already know and love from on-the-ground retail: tokenized payments that are safe, seamless, and reliable—even in challenging, offline environments.

Here’s the twist: while this is great news for guest experience (goodbye mid-flight wallet fumbles!), it also reshapes how airlines think about payment hardware. The days of equipping every crew member with a payment device are numbered. Why spend big on hardware that’s increasingly obsolete?

That said, don’t toss the card readers just yet. Tokenized payments need contingencies. Devices lose charge. Technology glitches. Airlines should plan for reduced—but not eliminated—hardware needs, opting for fleet-based allocations over costly one-device-per-crew-member models.

If this sounds like a tricky balancing act, it is. But let’s not pretend that investing in fewer devices and smarter software isn’t a win-win for budgets and crew satisfaction.

At Guestlogix, we’re all about digital transformation.

Our vision is to make travel stress-free, and we edge closer to that promise with each passing year. But let’s be real—chasing every shiny new tech trend without a solid strategy isn’t innovation; it’s chaos. The future of inflight retail isn’t just about blazing-fast inflight internet or cutting-edge AI personalization; it’s about building systems that thrive in the messy realities of air travel: offline flights, complicated inventories, aging hardware, and everything in between.

So as 2025 approaches, remember this: innovation isn’t about being the flashiest; it’s about being the most adaptable.

And if you’re not sure where to start, we’ve got a roadmap to help you navigate the turbulence.