KLM will permanently stop selling duty-free products on European flights starting in July this year. The move was already announced late last year as a “proposed decision” that the management had submitted to the works council.
According to KLM, partly due to the rise of online stores, in-flight sales would no longer meet customer needs.
‘Customers have now become accustomed to an almost infinite range of products, for which they can look up the lowest price online. There is also increasing competition with the range of airports.’
KLM will also stop duty-free sales on intercontinental flights from January 2020. The airline is still looking for an alternative, and is exploring other forms of “travel retail,” which strives for customer convenience and a large selection. With this, a pilot project will start soon.
KLM does want to generate more revenue from additional services, known as ancillaries, such as checked baggage, meals, seat choices, as well as vacation travel with flight and hotel. ‘We are aiming for an additional turnover of 250 million euros next year,’ Harm Kreulen, managing director of KLM Netherlands, stated earlier.
