Increase in the contractual alliances with other airlines to expand the reach of catering services provided by airlines is identified as one of the major trend in the global In-flight catering service market
The global In-flight catering service market accounted for US$ 17.96 Bn in 2017 and is expected to grow at a CAGR of 6.4% over the forecast period 2018–2025, to account for US$ 29.00 Bn in 2025. With the help of building contractual alliances or relationships with other airlines, the outsourcing segment which includes hotels, caterers, restaurants, or alliance with Chefs is booming. This increase would help to ultimately growth the In-flight Catering Service market in forthcoming period.
In the current scenario, the growth in the number of procurement of aircraft to the commercial airlines is in charge to raise the demand for more in-flight catering services. Many full service carrier and low cost carriers throughout the globe prefer to outsource various on-ground and on-board procedures and operations as the players are looking forward to execute cost-cutting strategy in their business structure. The carrier companies are seeking ahead to partner with other top-rated hotels, restaurants, caterers for outsource catering services. Though the airlines on a constant basis faces pressure in respect to cost cutting, food quality and catering service stills remains extremely important to the carriers, as the services provided to the passengers directly contributes to enhance the overall flight experience.
In-flight catering services is the profitable service industry majorly for long-haul flight operators, due to which the airline companies are constantly focuses to enhance the quality of food by way of adding or introducing varied types of cuisines for passengers from different geographical locations. Many players of airline industry enter into partnership with the hotels, chefs, food trucks, and other lounges to bring high quality of food and in-flight catering services for all travel classes consists of economy, premium economy, business and first class. Enlightening in this context, many airlines partnered with celebrity chefs to keep changing the on-board menu design and food items in order to increase its brand image in the market and among competitors. For instance, Chef Massimo Bottura to join Servair’s Studio Culinaire in order to improve the work of Studio Culinaire, a renowned culinary excellence center from March 1, 2018. The Studio Culinaire’s common goal is to enhance the quality standards of onboard catering by ways of using principles of fine food for the passenger meals throughout the globe.
Furthermore, several initiatives are undertaken by the catering service providers to other airlines in order to assist the airlines in achieving their goal. For instance, in 2018, Flying Food Group, LLC caters Ethiopian Airlines, three times a week direct service between O’Hare international Airport and Addis Ababa Bole International airport. In this new route, these direct flights are offered between Chicago and Africa. Similarly, Vienna-based Do & Co would offer meals for the British Airways, Iberia and Iberia Express. These meals are provided for both short and long-haul flights from their respective hubs situated in London Heathrow and Madrid.
