Our new interview series examines the structural challenges facing aviation and the companies and individuals working to address them. From distribution deadlocks and budget overruns, to stalled innovation, hear stories of those on the “front line,” confronting legacy systems, commercial inertia, and the industry’s chronic reluctance to change.
How can airlines close the execution gap between bold retail ambitions and the realities of current operations?
Paul Bilham has a few ideas. As Chief Revenue Officer at Data Clarity, Bilham works with airlines to develop onboard retail programs that increase ancillary revenue while keeping operations running. He’s built his career on navigating change, seizing opportunities and collaborating with leaders across aviation.
With more than 25 years in the industry, he still remembers the days of paper ticketing and has witnessed the slow march of industry progress firsthand. He started in the GDS space before moving into onboard retail, where many of the basics—trolleys, beverages, duty-free—haven’t changed much, but connectivity and data are actively transforming what’s possible.
I spoke with Paul to explore why transformation across the aviation sector continues to stall, and what airlines must do next to compete in a world where customers expect modern retail experiences, no matter where they are.
(This interview has been edited and condensed for clarity.)
Mature retailers have a deep understanding of their customer journey between different touchpoints, in-store and online. That’s not something airlines have traditionally done. How do you apply that retail mindset to airlines?
In airlines, as in many large businesses, there are silos. Onboard retail is often removed from the rest of the business, and much of the data is disconnected from operations and other airline systems.
The consistent thread across all of these is the passenger. If you can gather the data points from all their interactions with the brand and bring them together—breaking down those silos—you start to get a rich picture of the customer. We’ve seen this work well outside aviation: Amazon uses interactions to make recommendations, Netflix knows what you watch and serves suggestions through algorithms.
Airlines that thrive in this area will connect data to truly understand their passengers—who they are and what they want—instead of falling back on generic, one-size-fits-all offers.
What challenges are airlines coming to you to solve? How do you develop solutions?
Their challenges are all different, and yet the same. Revenue and waste are two key areas of focus. Airlines often have a high level of wastage onboard, so the challenge is finding the sweet spot where passengers get their first choice without throwing away 40-50% of unused stock at the end of the day. This has become more challenging with increasingly smaller aircraft, limited space and higher fuel prices.
Efficiency is another focus: How do we leverage the data we already have to be more efficient? Airlines have matured significantly in their onboard marketing efforts, whether through crew promotions or campaigns. But the question is how to use data to squeeze more out of these solutions: reducing what’s loaded on board, tailoring inventory based on passenger demand or engaging with people outside the cabin.
Underlying all of this is data. I need to know if something is working, with daily or weekly data that tells me the impact on sales, how that filters through to the front end and then iterate from there.
Are these problems technological, cultural or operational? How do they interact with legacy systems?
It’s a combination. Outside of the pandemic, there’s been no pause for companies to take a cold, hard look at their business and consider the next 5–10 years. Meanwhile, day-to-day operations need to stay reliable, and making significant changes carries significant risk. There’s risk aversion, of course, and a heavy dependence on legacy systems—airlines have used GDSs and other mature platforms for a long time, and for the most part they’ve proven reliable—so moving away from them naturally raises concerns.
Some airlines are working through the turbulence of implementation toward a stronger future, but transformational programs are big projects. You need a clear view of the end goal. Simply ripping out and replacing a retail system is a high-risk approach. The benefits are there, especially with demand forecasting, but the bigger question is how to use all passenger interactions together to build a clearer roadmap.
Airlines now see they can’t delay. We'll see more movement on forecast-based packing in the next 12-18 months, but behind the scenes, it is a big change. You need to change all of the processes in the warehouse, which require complex workplace changes and unions. That all slows down the progress of change. Momentum is building. AI and newer technologies are reaching critical mass. With buying cycles of three to five years, adoption won’t be overnight, but early adopters will accelerate broader change.
Airlines are often “data rich, but insight poor.” What stops them from turning data into actionable intelligence?
It’s a fair assessment. The key is phasing the transition. Moving from traditional models to fully data-driven engagement feels enormous; doing it all at once isn’t realistic. Define the end state, identify quick wins and ramp up.
It's entirely achievable, but it takes stakeholders from every department within an airline, as you are no longer only talking about onboard retail. It involves loyalty and connectivity, too. The end result is that the passenger receives proper personalized engagement by taking all of those data points and bringing them together. Every airline is different, of course. You have to find the right people to create the vision and plan.
Larger airlines are more complex, so multiple sign-offs are required. But once the roadmap is clear, you’ll see changes bleeding through. Implementing data-driven models takes time, but the impact shows at the front end within a couple of years.
From your perspective, what are the most table-stakes improvements that haven’t been made yet and why?
Product choice has been quite difficult. You tend to find a lot of the same products across airlines, and they win when they start to differentiate with local products or unique offerings. We all know that cigarettes and alcohol always sell on certain routes, but beyond that, airlines need to make the experience more engaging.
Personalization is central to this. Limited onboard choice can be expanded through pre-ordering on-demand items or exclusive partnerships to sell items that passengers can’t get on the ground. The bigger shift is breaking retail away from a stand-alone business; it must contribute to overall revenue and the passenger journey. And that takes time.
How do you encourage clients to think about a connected customer journey from in-seat to on the ground and post-destination?
Getting sandwiches and drinks to passengers is basic—but the opportunity is bigger.
You have a captive audience and data. You know how often they travel with you, what they like and what they spend. How do you align that with your brand? Are you no-frills, so you offer something simple? Do you want to augment their journey? Do you want to sell excursions through their personal device with connectivity? You need to know your identity and make decisions with a bigger picture in mind. That will dictate the in-flight retail and everything else, beyond just "carts with things to buy" on the plane.
There’s often a tension between risk aversion and new approaches. With examples like Delta’s AI-powered dynamic pricing—which faced pushback—how important is it for airlines to take bold steps to evolve? Do you think airlines place enough emphasis on the potential of onboard retail programs to justify investment?
I think so. Over the years, we’ve seen the unbundling of legacy carriers, and most people are now used to paying for food and beverages on board—even with some airlines where that would have been unexpected ten years ago. Ticket prices are extremely competitive with very slim margins, so much of the upside comes from ancillaries outside the ticket, including onboard retail.
Airlines do invest in onboard retail because it’s a significant revenue driver. Ticket prices alone aren’t enough to sustain an airline. Numerous studies show the revenue potential from ancillaries, including onboard retail. So the appetite to invest is definitely there, and it’s a high-priority area for the airlines we work with.
Regarding Delta’s AI-driven dynamic pricing, that can also influence passenger behavior—people might try to use AI to find the cheapest price, creating cycles of unintended consequences. Personally, I think AI use needs to be responsible. It consumes a lot of power and water to cool the supercomputers running it. The benefits are real, for example, reducing fuel burn, minimizing connection times or optimizing gate walking distances. But spurious AI use in the background can create environmental impacts without meaningful value.
Overall, onboard retail remains a major focus for airlines, both from a revenue and sustainability perspective. Progress is ongoing, often incremental, but it’s an area where airlines will continue to make meaningful change.
Anything else deserving attention in modernizing air travel?
Connectivity is transformative. High-speed rollouts like Starlink will change the passenger experience and personalization. Beyond online transactions and emails, additional layers could become differentiators. Providers differ—Starlink offers a direct “pipe,” whereas others provide a platform ecosystem.
We’re probably three to five years away from full onboard connectivity, depending on airline type. Full-service carriers may move faster; low-cost carriers may take longer. Simple messaging or payment solutions can be implemented quickly. In my travels, more than 50% of flights now offer connectivity.
This shift will be significant, though some passengers, like me, enjoy undisturbed flights. That said, I think I’m part of a dying breed.
Onboard retail and ancillary services are no longer add-ons—they’re vital revenue engines. The future lies in connecting data, personalizing experiences and leveraging connectivity to create unforgettable journeys. The shift won’t happen overnight, but airlines that embrace data, collaboration and calculated risk-taking will redefine both the passenger experience and commercial potential of air travel.
To connect with Paul Bilham or learn more about his work at Data Clarity, follow him on LinkedIn or contact him directly at paul.bilham@dataclarity.uk.com.