153 / 396
flights’ namely flights with one stop-over.
To guests, this greatly enhances our
route network. To keep growing Fly-Thru,
we are continuously equipping more
hubs with the systems required for the
facility, and now have 11 Fly-Thru transit
hubs, the key ones being Kuala Lumpur,
Bangkok, Jakarta, Bali, Bengaluru, New
Delhi, Manila and Kota Kinabalu. Efforts
to increase the number of hubs and city
pairs will continue, with special focus on
winning greater market share in our core
markets.
Innovation is also evident in the way
we keep enhancing our inflight food
selection to create an affordable gourmet
experience on board. This year, we got
our guests to give us ideas. We ran a
survey asking them to recommend their
favourite Asian dishes. A clear winner
emerged – Kung Pao Chicken – which
was subsequently included in our menu,
Santan. Another addition was popular
Japanese stuffed rice balls, onigiri, which
we serve with miso soup. Moving towards
One AirAsia, we are standardising our
menu across the Group so that no matter
which AirAsia country airline a guest
flies, the food offering will be the same –
representing the best from Asia.
Other than food, we believe there is
great potential to further innovate on
our duty-free. In 2015, we launched an
online version of duty-free, making it more
convenient for guests to purchase goods.
During the year, we continued to introduce
more duty-free offerings, with a focus
on affordable yet trendy products priced
below RM100. We are also sourcing more
made-in-Asia brands to differentiate the
shopping experience with AirAsia while
supporting Asian entrepreneurs. For better
deals with suppliers, we are increasing the
volume of our purchases by standardising
our duty-free offerings across the Group.
This will translate into more attractively
priced items than are available in the open
market or indeed in other airport duty-free
shops. Every month, moreover, we offer
promos that are difficult to resist.
Meanwhile, to address the dip in
insurance take-up rates – which had been
affected by rulings by the Malaysian
and subsequently Indonesian authorities
requiring airlines to disable the auto opt-in
for coverage – we now offer insurance
as part of Value Packs, with encouraging
results. Our insurance take-up rate has
grown back to 10%.
The overall ancillary penetration rate of
AirAsia Berhad remains in the region of
55%-60%, which indicates much room
for improvement. We are focusing on
this by making more effective use of
the digital data that we have from on-
ground transactions and enhancing it
with the use of electronic point of sale
(ePOS) devices to capture data from
purchases on board our flights. We are
also developing ROKKI to serve as our
inflight brand for various digital offerings,
not just entertainment. Through ROKKI,
we will be able to integrate all the data we
have from individual guests to be able to
personalise our offerings, thus enhance
our guests’ experience and increase
ancillary sales. We are very excited about
this development and look forward to
reporting on more ROKKI-ing news next
year.
“OUR MOU WITH INMARSAT AVIATION
MARKS ONE OF THE LARGEST ORDERS FOR
HIGH-SPEED BROADBAND SERVICE BY ANY
AIRLINE IN THE WORLD.”
ANCILLARY SERVICES
REVENUE
RM1.93
BILLION
SEAT SELECTION REVENUE
PER GUEST
+11
%
FLY-THRU
TRAFFIC
+37
%
y - o - y
BAGGAGE REVENUE
PER GUEST
+9
%
ROKKI
REVENUE
RM1.2
MILLION
+ 1 3 7% y - o - y
[ ]
AirAsia Group Berhad
BUSINESS REVIEW
141