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Saturday, January 30, 2021

American Airlines Rolls Out A Retail Wine Program - Forbes

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As the hospitality industry as been hard hit this year by the pandemic, creative operators have been steadily coming up with new sales models. One of the most innovative to date would seem to be American Airlines new wine retail program.

The airline rolled out the program a few days ago and is selling its top-end wines and Champagnes to customers all over the country. Anyone can purchase the wines, which include everything from French gems from regions such as the Rhône to Argentine Malbecs and a wide range of California wines.

Given how far in advance airlines do their wine purchasing American had excess wine to sell with the downtick in travel over the past year. All the wines featured are those that had been offered in the airline’s business and first class cabins as well as lounges.

I recently found out a little bit more about the program from an American Airlines spokesperson. She notes that American has won more Global Traveler Wines on the Wing awards than any other U.S. carrier, including four first place wins in the past year. All responses have been edited for clarity and brevity.

Liza B. Zimmerman (L.B.Z.): When did this program start? 

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American Airlines Spokesperson (A.A.S.): January 21.

L.B.Z.: What inspired this program? 

A.A.S.: We’ve always had a surplus of wine, since we begin planning about a year in advance. We worked with our wine management partners at Intervine—a company that assists airlines in wine purchases—to think about creative ways to offer the surplus to customers. We felt that the Flagship Cellars program was not just a great way to generate revenue, but also introduce the Flagship experience to potential loyalty customers and stay connected with them, even if they are not traveling as frequently as they have in the past.

L.B.Z.: Are these wines you already had in stock and weren't selling because of Covid or new wines are you purchasing? 

A.A.S.: We begin our wine selection process nearly a year in advance of customers actually seeing it onboard or in our clubs/lounges. It’s a thorough process and we always plan for more than we need to ensure there is plenty for customers to enjoy. Therefore, we often have a surplus of wine. Flagship Cellars is a curated wine collection that customers would normally find in one of our premium cabins, these are the most prestigious wines that are no longer flying with us but would have been on a menu about six to nine months prior to their inclusion into Flagship Cellars.

L.B.Z.: How many wines are part of this program?

A.A.S.: It’s going to vary as it rotates throughout the year

L.B.Z.: Are they competitively priced? 

A.A.S.: Customers can order by the case as well as three packs and earn two AAdvantage miles per dollar spent. They can also get a monthly subscription or build their own box. We estimate the savings to be 17 to 37 percent less than retail.

L.B.Z.: What countries are they from? 

A.A.S.: Wines represent unique regions and flavors from prestigious vineyards around the world.

L.B.Z.: How long do you expect the program to run? 

A.A.S.: We plan to keep the Flagship Cellars program in place even after service returns to normal levels.




January 30, 2021 at 04:26AM
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American Airlines Rolls Out A Retail Wine Program - Forbes

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