Retail Knows You Better Than Airlines Do—That Needs to Change
18th March 2025
Airlines already have the data. The question is: Why aren’t they using it like retailers?
Retailers have long mastered personalised digital engagement—anticipating customer needs and delivering seamless, data-driven experiences. Some airlines are making real progress, but many still treat digital engagement as a transactional tool rather than a way to build deeper relationships with passengers.
At Data Clarity, we’ve seen firsthand how retailers like Paul Smith are leveraging unified customer data to drive hyper-personalised experiences. If a fashion retailer can know your preferences before you even walk through the door, why can’t an airline anticipate your needs before you board?
The good news? Some airlines are starting to get it right.
JetBlue personalises inflight food and drink recommendations based on past preferences.
Lufthansa has an AI-driven chatbot that helps passengers with bookings, flight changes, and FAQs.
Qantas leverages real-time customer data to offer targeted promotions and special upgrades to frequent flyers.
But across the industry, there’s still a huge opportunity to bridge the gap between digital ambition and real-world execution.
Where Airlines Still Struggle with Digital Engagement
McKinsey & Company reports that only 52% of European passengers are satisfied with their airline experience, with frustrations often tied to digital gaps—from clunky apps to generic loyalty programs.
Meanwhile, retailers see up to a 20% revenue boost from personalisation (forrester). Imagine the impact if airlines applied the same principles.
Where airlines fall short:
Data Silos – Passenger data is scattered across booking systems, inflight retail, and loyalty programs.
Transactional Thinking – Many airlines focus on ticket sales, not lifetime customer value.
One-Size-Fits-All Loyalty – Unlike retailers, airlines rarely personalise rewards based on real engagement.
The airlines that succeed think like retailers, turning every digital touchpoint into an opportunity for engagement.
What Airlines Can Learn from Retailers
Personalisation Beyond the Booking
Retailers like Paul Smith use past purchases to tailor recommendations. Airlines should do the same leveraging past bookings, seat preferences, and inflight purchases to craft dynamic, real-time offers.
Who’s doing this well?
Air Canada allows passengers to pre-order meals based on dietary preferences, ensuring a more tailored inflight dining experience.
KLM Royal Dutch Airlines uses AI-driven personalisation to suggest seat upgrades, extra baggage, and airport lounge access based on past behavior.
Seamless Omnichannel Experiences
Retailers integrate websites, apps, and stores for one continuous experience. Airlines should do the same.
What if:
- Your mobile app, inflight entertainment system, and airport kiosks all worked together to offer you a smooth, connected journey?
- You browse duty-free products pre-flight, then your inflight screen reminds you to check out?
Real-Time Engagement & Contextual Offers
Retailers send targeted notifications—why don’t airlines?
Here’s how airlines could do it:
Multiple Wi-Fi purchases? A loyalty perk for future flights.
Flight delay? An automatic lounge access discount.
Frequent traveller on a new route? A tailored airport transfer deal.
Smarter, More Dynamic Loyalty Programs
Retail loyalty programs reward engagement, not just spending. Airlines should, too.
Who’s Innovating?
Alaska Airlines allows frequent flyers to earn miles through non-travel purchases, keeping them engaged even when they’re not flying.
Japan Airlines offers personalised promotions based on passenger travel history, encouraging repeat bookings with tailored rewards.
The Numbers Don’t Lie
74% of consumers expect brands to treat them as individuals (Salesforce).
52% of passengers feel airlines fail to meet digital expectations (Mckinsey).
80% of frequent flyers say airlines should solve digital pain points before adding new features (McKinsey).
Retailers see a 20% revenue uplift from personalisation (Forrester).
The opportunity is there. The question is—who will seize it first?
Final Thought: The Airlines That Win Will Think Like Retailers
The technology exists. The data exists. The demand for seamless, personalised experiences is higher than ever.
Some airlines are leading the way—but most are still playing catch-up.
If you’re in the travel industry and tired of watching retail outpace airlines in customer intelligence, it’s time to act. Discover how your airline can leverage real-time data to personalise experiences, increase loyalty, and close the customer insight gap.
Contact us today to start transforming your passenger data into strategic advantage.
