Top ancillary & retailing trends to watch in 2025: Vantage Group, Air France-KLM, MUC, Oman Air, YVR and more on digitalisation, personalisation, AI-driven experiences and more

The following article was published by Future Travel Experience

In part 1 of our comprehensive focus, Vantage Group, Air France-KLM, Threedot, MUC, Oman Air, nlmtd, YVR, Kinetic Consultancy, and more share their insights into the top ancillary & retailing trends in 2025.

The ancillary & retailing space is ripe for innovation. As travellers increasingly expect more seamless and personalised experiences, airports and airlines are embracing advanced technologies and CX strategies to transform the ancillary & retailing landscape. In part 1 of our comprehensive focus, Vantage Group, Air France-KLM, Threedot, Munich Airport, Oman Air, nlmtd, Vancouver Airport Authority, and Kinetic Consultancy share their insights into the top ancillary & retailing trends to watch in 2025.

Vantage Group on digitalisation, AR, experiential retail, hybrid concepts and more 

Sammy Patel, Vice President Commercial, Vantage Group, highlights digitalisation and the rise of personalised, Artificial Intelligence (AI)-driven experiences as a key trend. Vantage – a member of the FTE World Ancillary & Retailing Working Group – is leading the development of the new JFK Terminal 6 while it manages the existing Terminal 7, which offers a great testbed for trialling new solutions and offers that may move over to the new T6. “As we plan and prepare for the first gates to open in 2026, we’re working closely with our retail partner to introduce an omnichannel shopping experience,” Patel shares. “This will integrate e-commerce web presence, pre-order, click-and-collect, and endless aisle services to allow passengers to browse and purchase before arrival or see a wider product portfolio than what is available in store.”

An interesting development is the introduction of Augmented Reality (AR) and virtual try-on technology as an innovative way for travellers to visualise clothes, makeup, eyewear, and accessories without putting them on physically. Alongside its retail partners, Vantage is trying out AR programs for clothes, makeup, and eyewear at New York’s LaGuardia Terminal B, as well as in Cyprus at Larnaka and Pafos airports.

“Another trend is premiumisation and experiential retail, as passengers are seeking luxury and exclusive travel retail offerings, from high-end cosmetics to premium spirits,” Patel explains. “We are exploring how to continue investing in experiential shopping, such as pop-up stores, brand activations, and immersive product demonstrations to drive engagement. We’ve had some good success with pop-up experiences at LaGuardia and Chicago Midway.”

Localisation and cultural relevance an important trend being tracked at Vantage Group’s airport. “Our most recent redevelopment at Montego Bay, Jamaica’s Sangster International Airport focuses on local artisan goods, regional spirits – like rum and coffee – and cultural souvenirs to attract international buyers,” says Patel. “In North America, travel retail brands are incorporating regional exclusives, such as limited-edition bourbon in the U.S. or local gifting at Kansas City International Airport.”

Vantage is also trialling hybrid concepts for services and retail, and F&B and retail. For example, it recently had two partners work together to operate a Starbucks and main travel retail offer – Bowery Bay Shops – at LaGuardia Terminal B, which is helping drive dwell time for the travel retail offer. “We’ll take a similar approach with concepts at the new JFK T6,” Patel adds. “We will continue to put emphasis on retail, but for us it is about growing the pie, not diluting F&B spend for retail. Over the next few years, we expect the space allocated to retail to remain similar, and a steady increase in share of spend as the travel offer becomes more defined.” Learn more about the FTE World Ancillary & Retailing Working Group >>

Air France-KLM on dynamic pricing, flexible offer creating, proper product management and more

Tiddo Veldhuis, VP Offer Management & Ancillaries, Air France-KLM, highlights further evolution towards a modular build-up of products, dynamic pricing of those products and flexible offer creating as key trends. “For direct online this means more and more variety of offers in the booking flow,” Veldhuis explains. “Ancillaries is not only about extra revenue, it’s about proper product management. What is the product you sell, what is the price, do customers use it, do we deliver as promised, do we have a good NPS on it? Are you in control on your seating logic, how do you steer your baggage processes, how do you make sure not everyone is SkyPriority (priority services for SkyTeam members), how do you make sure every customer to who you sell the lounge also appreciates the lounges?”

Hear more from Air France-KLM at the co-located APEX FTE EMEA and APEX FTE Ancillary & Retailing events, taking place in Dublin – the ‘Silicon Valley of Europe’ – on 10-12 June 2025. Veldhuis is speaking in the Ancillary & Retailing Conference. “I’m looking forward to exchange on the above topics at industry level and understand how others try to crack these technological challenges,” he shares. Register for APEX FTE EMEA and APEX FTE Ancillary & Retailing – one registration provides access to both events >>

Threedot on accelerating the industry’s transition to airline retailing

Eric Léopold, Founder & Managing Director, Threedot, is also Content Director for APEX FTE Ancillary & Retailing (Dublin, 10-12 June 2025). Sharing his perspective on ancillary & retailing trends, Léopold highlights that on the distribution side (NDC), he sees a phase of commoditization and differentiation. “NDC APIs have been there for 10 years and most PSS providers offer simple APIs as a commodity,” Léopold explains. “At the same time, NDC volumes are growing and airlines expect more value than the basic API that connects the PSS to travel sellers. On the offer side – dynamic offers – I see evolutions on the pricing and the product creation. Continuous pricing and product bundles mixing interlining and non-air partnerships are becoming the new normal for leading airlines. On the order side (ONE Order), I see 2025 as a pivotal year where major airlines make decisions on their Order Management Systems (OMS) to replace their PSS. The planning work started after Covid and is materialising now. The roadmap to 2030 and to 100% Offers and Orders becomes clearer.”

Under the theme of ‘Innovate to Elevate’, APEX FTE Ancillary & Retailing 2025 will challenge attendees to think beyond the status quo, focusing on harnessing creativity and innovation to take ancillary & retailing performance to new heights. “I am delighted by the outcome of the 2024 edition of APEX FTE Ancillary & Retailing, and grateful to all the speakers, participants and sponsors who made it a resounding success,” says Léopold. “APEX FTE Ancillary & Retailing is the must-attend annual meeting where innovators showcase their latest developments, where leaders share their vision and where all partners contribute their use cases. I am excited to continue working closely with FTE to help accelerate the industry’s transition to airline retailing and ultimately improve the travel experience. As every year, we will be amazed by the presentations and discussions, and we will go back to our offices full of energy and ideas. I also look forward to contributing to the important, increased focus on commercial content at APEX FTE Asia Expo in the dynamic APAC region. See you all in Dublin and Singapore!” Register for APEX FTE EMEA and APEX FTE Ancillary & Retailing – one registration provides access to both events >>

Munich Airport on tech-driven CX, omnichannel concepts, VR, the human factor and more

The retail and service industries are currently at a turning point where new technologies are not only revolutionising the way products and services are offered, but also fundamentally changing the customer experience. “Good examples of this include the use of Artificial Intelligence in sales units, self-order terminals in the hospitality sector, and digital service channels for online reservations of products or service consultations,” explains Dr Jan-Henrik Andersson, Chief Commercial Officer, Munich Airport (a member of the FTE World Ancillary & Retailing Working Group).

Omnichannel concepts represent another trend in the industry by connecting online and offline commerce. Customers can conveniently shop online and either pick up their goods instore or have them delivered to their homes. “This not only promotes convenience, but also encourages stronger customer loyalty, as physical retail is supported by digital offerings,” Andersson shares. “Another fascinating trend is the latest technology in vending machines, increasingly offering more than just drinks or snacks. With interactive displays and product information, these machines now provide added media value. They offer a cost-effective way to relieve sales staff without compromising the quality of the customer experience.”

Virtual Reality (VR) is also increasingly being used to drive sales. “Innovative ‘retailtainment’ formats such as VR experiences or gaming create unique experiences and draw customers into stores,” says Andersson. “However, despite all these technological innovations, the human factor remains a crucial aspect of the customer experience. Beyond technical precision and efficiency, customers also expect personalised service, genuine compassion, and a high level of competence when it comes to their individual needs.” Learn more about the FTE World Ancillary & Retailing Working Group >>

Oman Air on AI, omnichannel concepts, hyper-personalisation and more

Surya Kuchibotla, VP eCommerce, Ancillary & Retailing, Oman Air, highlights that Artificial Intelligence (AI)-driven innovations “are changing the retail industry by enabling faster, smarter and more efficient product ideation” and adds that how this can be ported to aviation to formulate new products and services, prototyping and hyper-personalised products is a key trend.

“Omnichannel experiences have been in the industry for a while,” says Kuchibotla. “An important trend now is how Generative AI can make the customer experience more personal and curated – for example by tailoring experiences based on traveller preferences and behaviour.”

Hear more from Oman Air at the co-located APEX FTE EMEA and APEX FTE Ancillary & Retailing events, taking place in Dublin – the ‘Silicon Valley of Europe’ – on 10-12 June 2025. Kuchibotla is speaking in the Ancillary & Retailing Conference, with a focus on “digital retailing platforms and how that can be a game-changer for ancillary & retail, and elevating digital customer experience with data and superior insight management”. Register for APEX FTE EMEA and APEX FTE Ancillary & Retailing – one registration provides access to both events >>

nlmtd on elevating personalisation and revenue optimisation

The ancillary & retailing landscape is undergoing a fundamental shift, where personalisation, Artificial Intelligence (AI)-driven commerce, and seamless fulfilment will become the standard. Albert Jan Prevoo, Director Aviation Innovation, nlmtd (Unlimited), and Captain of the FTE World Ancillary & Retailing Working Group, highlights several transformative trends that will shape how airlines and airports will engage customers and maximise ancillary revenues in 2025 and beyond.

“For airlines, Offer & Order Management Systems (OOMS) will continue to replace PSS legacy systems, enabling more dynamic, real-time ancillary strategies,” Prevoo shares. “The move toward AI-driven pricing and intelligent bundling will be a game-changer, offering passengers tailored seat selection, baggage, WiFi, lounge access, and inflight purchases in one intuitive transaction. Airlines will increasingly adopt Machine Learning models to predict purchasing behaviour and offer dynamic fare and ancillary packages based on real-time demand, route conditions, and passenger history.”

Airports are evolving into fully digitalised commerce hubs, where AI and automation enhance both passenger experience and revenue streams. “Expect hyper-targeted retail offers based on real-time data from flight details, customer preferences, and location tracking within the airport,” says Prevoo. “Airports will push mobile-first retail, where passengers can order F&B, duty free, and services directly via airline apps, with gate-side or lounge delivery as a norm. The rise of virtual duty free stores, Augmented Reality (AR)-powered shopping, and AI-driven smart displays will create engaging, space-efficient retail options while reducing operational overhead.”

Meanwhile, for low-cost carriers (LCCs) the opportunity in lies in super apps – centralising travel, retail, and lifestyle services into one digital experience. “From transactional booking to full travel retailing, LCCs can expand beyond flights, offering transport hotels, experiences, and e-commerce within a single ecosystem,” Prevoo explains.

With limited space, weight restrictions, and short turnaround times, airlines and airports will need to balance their ancillary & retailing offerings with operational efficiency. “Expect further innovations in pre-order and delivery models, digital wallet integration, and in-app dynamic pricing to optimise conversion without impacting logistics,” Prevoo comments.

AI will also play a bigger role in inventory management, ensuring just-in-time catering, baggage weight optimisation, and inflight retail logistics align with sustainability targets.

Finally, Prevoo highlights the shift toward smart airline retailing. “We envision ancillary & retailing strategies will no longer be just about selling add-ons – they’ll be about seamlessly embedding personalised commerce into every touchpoint of the travel experience. The players who harness AI, dynamic pricing, frictionless fulfilment and collaborate with relevant stakeholders within our eco-system will set the benchmark for the next era of retailing. I look forward to sharing insights and seeing these trends in action within the FTE World Ancillary & Retailing Working Group!” Learn more about the FTE World Ancillary & Retailing Working Group >>

YVR on hyper-localisation, customised experiences, digital innovation and more

Benedict Ma, Director Passenger Retail Experience, Vancouver Airport Authority (a member of the FTE World Ancillary & Retailing Working Group) sees the trend of incorporating local brands and concepts continuing to keep pace globally. “Vancouver International Airport (YVR) has been on this journey and we have incorporated hyper-local F&B brands like Dirty Apron, Tripe O’s and Lee’s Donuts in our Domestic Terminal in the past few years to great success,” Ma explains. “I see incorporating local products in line with our sense of place only strengthening in the coming years as it has also helped to diversify our business, especially now with the changing economic environment and consumers prioritising locally produced goods.”

Another growing trend is the opportunity to create more customised experiences. “Travel retail can be somewhat monotonous with concessions dominated by international groups and brands,” says Ma. “We need to create a differentiated experience for our passengers, by finding more unique products that may not be readily available on the high street, by incorporating more local brands for gifts and souvenirs, or by customising well-known international brands with a local sense of place, in order to capture the interest of our passengers and convert to higher sales.”

Ma shares that growth may be reverting to historical trend – in addition to local goods and customised experiences, product knowledge and customer service will become increasingly important to drive higher conversion. “In other words, we cannot rely on passenger growth and product alone,” he explains. “To this end we are elevating customer service training across the airport ecosystem, from management to operations to airport partners. We realise that providing excellent customer service at each passenger touchpoint is required to increase conversion at the Point of Sale.”

Digital innovation has always been incorporated into YVR’s DNA as an airport. Ma adds that, going forward, it will place additional focus in the space to unlock opportunities in the concessions. “We will utilise the digital twin to better understand passenger behaviour and use data to create customised experiences that increase sales. We also are further developing our ecommerce platform to create a one-stop-shop for our partners and passengers alike.” Learn more about the FTE World Ancillary & Retailing Working Group >>

Kinetic Consultancy on the seamless integration of front-end CX with back-end operational efficiency

Martijn Steur, Managing Director, Kinetic Consultancy (a member of the FTE World Ancillary & Retailing Working Group) emphasises that, in 2025, the key to success in ancillary & retailing will be the seamless integration of front-end customer experiences with back-end operational efficiency. “Airports and travel hubs must go beyond transactions and create holistic, engaging, and frictionless journeys that not only drive revenue but also enhance customer satisfaction,” says Steur. “The winners will be those who understand that digital, physical, and logistical elements must work in unison to propel business forward.”

One of the biggest industry shifts will be the further rise of Centralised Receiving and Distribution Centres (CRDCs). “With increasing pressure on space, sustainability, safety & security and efficiency, airports will need to rethink how goods move through their ecosystems,” Steur explains. “CRDCs allow for better inventory management, reduced waste, and enhanced retail flexibility, ultimately supporting a more dynamic, effective and personalised passenger experience.”

Additionally, Steur highlights that personalisation and digital retailing will continue to evolve. “The era of one-size-fits-all retail is definitely over. In 2025, data-driven personalisation will take centre stage, enabling airports and brands to deliver tailored offers and experiences based on real-time passenger insights. From AI-powered recommendations to digital marketplaces that extend beyond the terminal, the focus will be on making every interaction relevant and seamless.” Learn more about the FTE World Ancillary & Retailing Working Group >>

Creating dynamic, engaging and efficient retail environments

As the above examples illustrate the integration of innovative technologies and CX strategies into airline and airport retailing is reshaping the ancillary & retailing experience in profound ways. From seamless mobile checkouts and personalised shopping experiences to AI-driven recommendations and enhanced in-store technologies, these advancements are elevating both convenience and satisfaction for travellers. As customer expectations continue to evolve, airlines and airports must embrace these trends to stay competitive and create more dynamic, engaging, and efficient retail environments. The future of air travel retailing lies in the ability to leverage cutting-edge tech to anticipate needs, improve service delivery, and foster lasting customer loyalty. Register for APEX FTE EMEA and APEX FTE Ancillary & Retailing – one registration provides access to both events >> Learn more about the FTE World Ancillary & Retailing Working Group >>

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Top ancillary & retailing trends to watch in 2025: Vantage Group, Air France-KLM, MUC, Oman Air, YVR and more on digitalisation, personalisation, AI-driven experiences and more