Annual Report 2019

Catering to takeaways, we continued to enhance our range of food souvenirs. From Santan’s kitchen, we now offer Pak Nasser’s Nasi Lemak Rendang and Sambal Paste that guests can use once they get home. T&Co, meanwhile, introduced six new home-brand products developed together with local SMEs – Roasted Cashew Nuts, Milk Chocolate Almond, Liu Pao Chinese Tea, Matcha Latte, Nutty Caramel Crisps and Dried Pineapple. Duty Free Duty Free continues to demonstrate its potential and significance in a guest’s journey, with revenue growing 40% year-on-year, the largest growth among our Airline Ancillary offerings. This was partly boosted by our pre-book duty-free platform which has grown tremendously since its official launch as a full-fledged e-commerce marketplace in July 2018. The marketplace offers not just luxurious goods but also curated local selections. Purchases can be picked up inflight or at the airport. Our database of 100 million guests provides us the ability to approach guests through various touchpoints with personalised messaging based on their lifestyle behaviours and preferences. Meanwhile, innovative improvements in communication channels such as our in-app messenger for guests create the possibility of time-sensitive promotions that drastically improve conversion rates. AirAsia WiFi AirAsia WiFi (formerly known as ROKKI) is our Ka-band enabled high-speed internet service that allows guests to perform data intensive functions inflight such as video streaming, uploading live on social media and making high-quality video calls. It also enables guests to browse our e-commerce platform and buy goods available online. Most of the content on our e-commerce portal are travel related videos that highlight places to visit and activities to indulge in. Guests can also purchase tickets for these attractions/activities onboard. Using the platform to promote ASEAN artistes and artisans, in 2019 we introduced singer Siti Khadijah and fashion designer Neelofar while growing the number of entrepreneurial products available in partnership with the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP). Another key service is Digital Advertising through which third parties are given the opportunity to advertise to a niche captive audience, ie our guests. The advantages of being able to target the traveller segment has not been lost, resulting in exponential growth of the service offering. In 2019, we installed AirAsia WiFi on 15 aircraft, expanding the service to AirAsia Thailand and AirAsia X. The service was accessed by close to 30% of guests on the ‘wired’ flights. To further increase our take-up and conversion rates, we will be leveraging the ability to customise the contents, advertising and merchants presented according to routes. AIRASIA GROUP BERHAD ANNUAL REPORT 2019 103 BUSINESS REVIEW