From a purely business sense, this is classic disruptive innovation in action. Disruptive innovation – a clever term used initially by Harvard professor Clayton Christensen – is all about finding new markets that are hitherto untapped.
by Dr. Ruwantissa Abeyratne
Montreal
“Airline food is not intended for human consumption. It’s intended as a form of in-flight entertainment, wherein the object is to guess what it is, starting with broad categories such as ‘mineral’ and ‘linoleum.'” — Dave Barry, Dave Barry’s Only Travel Guide You’ll Ever Need, 1991
Something strange seems to be happening in the world of air transport these days. For my 38 years as an aviation professional, and in all my travels, I have never heard anyone say anything positive about airline food: food served in Economy-Class, that is. Of course, food in Club or First-Class is another matter where I have heard some say the food served there is “fit for angels”. This is no small wonder considering the enormous gap between the Economy fare and Business or First-Class fare. What is intriguing is that there has been a surge of demand in many parts of the world for Economy-Class food served terrestrially by airlines which have established outlets on the ground or contracted out to sell packaged airline food trays to travel crazy travelers who are now precluded from jet setting around the world.
Whether it is the smell of airline food that triggers bouts of nostalgia which helps simulate the travel experience or a subconscious and hidden desire for the taste of food sold cheap on the ground, is an enigma for one to unravel. The fact remains that sales have been brisk on the ground. The Daily Mail records that “[A]ccording to The Wall Street Journal 40,000 snack packs that were originally supposed to be supplied to JetBlue have now been sold by the company Imperfect Foods”. The article goes on to explain what’s been happening in Australia: “Gate Gourmet is one of the world's biggest airline catering companies and has been supplying meals to international airlines flying to and from Australia since 2002. But the supplier has opened its doors to the public in the midst of COVID-19, with customers now able to order an assortment of economy class meals, including vegetarian and non-vegetarian options.
While some are enjoying the experience of pretending they're on a long-haul flight, others say they are simply easy prepared meals they can put into the microwave and serve up for a quick lunch. 'It's a fantastic offer - I've bought 20 meals for $50AUD ($35 USD). Great to keep in the freezer for a quick lunch or alternative to a takeout dinner. And helps support the tourism industry,' one woman said in a Facebook group”.
The Economist of August 29, 2020 has a similar report citing Asian airlines in general. It says inter alia “Garuda is not the only Asian airline to flog its food to the land-lubbing public. Santan, owned by AirAsia, a big low-cost carrier, sells two Malay staples, nasi lemak and beef rendang (each $4) at its main hub in Kuala Lumpur, Malaysia. Thai Airways offers stir-fried tiger prawns ($8) and tandoori lamb chops ($9.25) in Bangkok. Hong Kongers can pick up $5 “stir-fried beef strip” and “Indian curry fish” from Cathay Pacific’s catering arm. Australians can choose from the voluminous menu of SnapFresh, an airline caterer, or buy a mystery meal from Gate Gourmet, a rival which sells “main meals combination” or “vegetarian combination” in bulk packs”.
“The grub is flying off the trolleys. Santan sells about 700 meals a day; SnapFresh roughly twice that. In June Gate Gourmet sold out. PT Aerofood is so pleased with “Fly with Meals”, as it calls its retail wing, that it is opening restaurants in three big Indonesian cities. It is a far cry from the 80,000-90,000 meals that Garuda normally serves each day, but it helps.”
From a purely business sense, this is classic disruptive innovation in action. Disruptive innovation – a clever term used initially by Harvard professor Clayton Christensen – is all about finding new markets that are hitherto untapped. Before the pandemic, which put paid to the prolific travel by 4 billion travelers (per year) taking 100,000 flight per day around the globe, no one thought of the hidden market of frustrated travelers who were arguably addicted in their own way, not so much for the journey per se but for the travel experience. Professor Christensen, in an article on disruptive Innovation in Harvard Business Review says that disruptive innovation originates in low-end or new-market footholds.: “Disruption” describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses. Specifically, as incumbents focus on improving their products and services for their most demanding (and usually most profitable) customers, they exceed the needs of some segments and ignore the needs of others. Entrants that prove disruptive begin by successfully targeting those overlooked segments, gaining a foothold by delivering more- suitable functionality—frequently at a lower price”.
CNN Business has recorded: “ Asia's largest low-cost carrier is betting people love its food so much that it opened its first restaurant on Monday, offering the same menu it sells on flights. It's not a gimmick, either: AirAsia, based in Malaysia, said it plans to open more than 100 restaurants globally within the next five years. The quick-service restaurant's first location is in a mall in Kuala Lumpur. It's called Santan, meaning coconut milk in Malay, which is the same branding AirAsia uses on its in-flight menus. Entrees cost around $3 USD and include local delicacies such as chicken rice and the airline's signature Pak Nasser's Nasi Lemak dish, a rice dish with chili sauce. Locally sourced coffee, teas and desserts are also on the menu”.
So what is this market segment that thrives on travel? It could well be Generation Y (25-35 year olds) which constitute 34% of global population in 2020. They are now identified as The Global Tribe who would be in constant travel across the globe in the years to come. Millennials are the largest generation with a population of 79 million in the United States. (also known as the Gypsy Tribe or Satellite Tribe) are the tech savvy young who are plugged in throughout the day to social media and the internet. They relentlessly need connectivity. In 2036 they could amount to 81.1 million, according to the Pew Research Centre They have income to spare and treat travel almost as a daily part of their lives. Above all, they prefer pre-set meals and the airline food tray, all assembled, meet their need without having the tedium of cooking their own food, and being able to buy food at ridiculously cheap prices ( think of Nasi Lemak – rice cooked in coconut milk – and beef rendang at $ 2 per portion!!).
Millennials travel patterns have been identified as follow: “85% of millennials check multiple sites before booking their travel to get the best deal possible; 46% book travel through a smartphone or tablet; 60% will upgrade their travel experience by purchasing in-flight wi-fi, early deplaning, etc. They WILL post their experiences on social media. In fact, 97% will post while traveling, and 75% will post once a day. That's a lot of social activity. 68% will remain loyal to a program that offers them the most rewards; Cash / Freebies’; Upgrades; Discounts”. The cheap inflight meals sold on the ground would help airlines to consolidate their brand with this category of traveler when good times roll again, which is inevitable.
The most basic pandemic law can be identified as “absence makes the heart grow fonder” be it in the loss of company of loved ones or the yearning for a practice that is abruptly taken away. To keep the latter alive, and bring back the insatiable need for air travel, airline food could be a catalytic innovator and an effective disruptor.
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