Skift Take
With their onboard food and drink programs, airlines want to keep passengers happy. But they also want to keep costs reasonable.
For almost a decade, the Germany-based company SkyTender has promised airlines they can revolutionize how they serve drinks by dropping canned sodas and watery coffee and adding special trolleys that dispense fountain-style sodas and specialty coffees, such as cappuccinos and espressos.
Each year, in April, SkyTender brings its contraptions to the World Travel Catering & Onboard Services Expo in Hamburg, where food and drink companies set up elaborate booths in two gigantic halls, hoping to sway airlines. Some, like SkyTender, seek to persuade airlines to invest in new technology. Others hawk speciality jams, artisan cookies, champagne, craft beer, and cider that airlines can sell or give away on board.
Some vendors view it as a make-or-break event. They are typically firms like SkyTender selling technology without an obvious market beyond transportation. Food producers may see it differently — they can sell to retailers — but they still may hope an airline contract will raise their profile, or boost profits.
Conventional wisdom suggests airlines are cutting back, and catering is less important than a couple of decades ago, but that's not true. Full-service airlines still spend freely on food and drinks for premium customers, and some, like Delta Air Lines, are increasing budgets for economy class passengers, even on shorter flights. Meanwhile, low-cost carriers want to sell better food and drink, hoping that by chasing the artisan, small-batch trends seen on the ground, they can spur onboard sales.
Catering worldwide will be a $28 billion global industry by 2026, growing about 5 percent per year, according to a report from Transparency Market Research.
But vendors can struggle to break in. Airlines and their caterers are risk averse, and it can take them months, or even years, to make a decision. When evaluating technology, like SkyTender’s carts, they want to know the platform can hold up to the rigors o
