KLM has announced it will discontinue in-flight duty-free sales as demand has declined, a change the airline attributes to the growth of internet shopping and stronger competition from airport retail outlets.
The carrier plans to end duty-free sales on European flights in July 2019, with on-board duty-free offerings on long-haul intercontinental services ending in January 2020.
KLM stated it is “exploring alternative forms of travel retail concept” and intends to test several pilot projects to find new ways to serve customers’ shopping needs during travel.
According to the airline, customers now expect access to an almost unlimited range of products and the ability to compare prices online, while airport shops have expanded their selection and competitiveness.
“Because the current sales process no longer meets today’s customer requirements, we have decided, after extensive deliberation, to bring this to an end,” said Miriam Kartman, Executive Vice President, KLM Inflight Services.
As a result, passengers on European flights will no longer be able to purchase tax-free articles on board from July 2019, and the same change will apply on intercontinental flights from January 2020.
Beyond reduced sales revenue, KLM expects operational benefits from the decision. Carrying fewer duty-free items lowers aircraft weight, which can help reduce fuel consumption. In recent years, airlines have pursued other weight-saving measures as well, such as installing lighter seats and removing in-flight printed newspapers and magazines to cut fuel costs and improve efficiency.