The Versilian - V01 March 2024

The Versilian Newsletter

Dear Friends,

We are very pleased to welcome you to this first ever editions of “The Versilian” our brand new newsletter. Thanks to Estefania, Michael and the team for doing such a great job putting it together. The newsletter will come out twice a year and is packed full of our fresh thinking across product, tech and ESG. In particular, be sure not to miss the review of the latest travel retail insights shared by Sue Walker, our Chief Customer Experience Officer, which can be found on page 4.

Preparing this newsletter really brought into focus for us just how much we’ve achieved as a team in recent months. 2023 was a big year for the Versilia family as we welcomed a large number of new colleagues, completed the successful launch phase of the Avianca retail program and saw strong growth in performance across our geographies. We are full of hope for what 2024 will bring and excited to share our progress with you as the year unfolds!

As always please feel free to reach out to me with suggestions, feedback or just to say hello.

Best Wishes

Caroline Ulbrich CEO

Reklaim Pre Loved Luxury

Versilia is proud to announce our new partnership with “Reklaim” a leading supplier of pre-loved luxury items.  With an extensive catalogue encompassing watches and handbags customers are sure to find a unique treasure to be delivered to the aircraft or their home. As all the items are pre-owned

Mark Evans Head of Trading

Hamburgers Now on SKY

Tesoros Al Cielo

Avianca, in partnership with ProColombia, initiated a call to spotlight Colombian brands distinguished for their innovation and sustainability. That's why at Versilia Solutions, we take pride in having fully supported this "Tesoros al Cielo" initiative, which aims to boost business growth in Colombia. Three fortunate enterprises -Kolado Caffé, Fidmi, and Good Chips by Paramo Snacks- were selected to showcase their products at over 36,000 feet in the onboard menu catalog.

We celebrate the success of "Tesoros al Cielo" and look forward to continuing to collaborate on projects that highlight the best of local brands where our clients are located. Join us on a journey to new altitudes and experience the diverse flavors of Colombia along with the finest local quality!

Retail Insights

The Onboard Retail environment looks set for a faster evolution than at any time in its recent history.

The onboard retail market has sought to follow the trends of the high street since its inception but has tooperate within a unique set of constraints: operating in an offline payment setting, the limited access and therefore restricted supply chain options and the practical challenges of weight and space. Technology presents opportunities to break some of those historical norms and in turn to offer greater choice and innovation to what has, in many ways changed very little over the last two decades.

High Street Trends

As the swing towards e-Commerce and online shopping continues the drive for more seamless shopping experiences will continue. Advances in Artificial Intelligence, digital tools and easily accessible applications have

underpinned the shift and will continue to do so. Likewise the emergence of Direct to Customer supply from major brands and personalisation. Sustainability is of greater and greater importance, particularly among younger shoppers. That sustainability story needs to be felt across all aspects of the product. From packaging, carbon footprint, recyclables and ethics. There is a growing market in “pre-loved” products at the high end. Second hand is so much more palatable when it is wrapped up in a feel good recycling story. It also means that access to luxury items that might have been beyond the reach of cost conscious consumers are suddenly realizable.

Implications for Onboard Retail

The trends in the high street present a genuine sense of optimism and opportunity for Onboard Retail. At the heart of the opportunity, lies technology. E-commerce enables a broader market place and greater touchpoints throughout the journey. AI and bespoke tools provide the opportunity to create a smarter and more dynamic supply chain. Digital

experience as possible – such as multiple ways to pay and ‘round ups’ to go to charity. These innovations will go beyond online pre-flight traditional e-commerce and could see kiosks in lounge/gate areas just as you see in QSR formats on the high street. The evolution of payment options will also go beyond today’s methods. Loyalty can be treated in new ways that stretch past the recovery of accumulated miles. Particularly loyal customers can be offered exclusive product options and there is the potential for dual pricing that rewards those who hold a certain level of loyalty card with automatic discounts.

Summary

The digital revolution that has shaped the modern High Street and changed the spending habits of consumers worldwide offers an insight into the future direction for Onboard Retail. There are real opportunities there to be exploited and technology has created the potential to create more bespoke, end-to-end retail solutions that can be tailored to the demographic and adapted for other influences such as time of year, point of origin etc. In that sense we believe that Onboard Retail is set to develop faster than at any time in the

Volotea crew

Our whole team is very proud of our new “LUZ” crew training and engagement app, we believe it is a real point of difference for our business and will help us bring onboard

Volotea has been our launch partner for the product and we are already seeing results in terms of crew uptake and onboard performance. In September we launched a competition with gift cards awarded to the top 3 app users.

This has boosted app usage by a further 40%! Great work

NEXUS

Mobile Pick & Pack

Tablet based catering operations

Versilia has developed the ability for catering staff to record stock movements of barset inventory via a mobile tablet.

With a simple and easy to use interface, users can record replenishment, ullage and

Círculo

Closing the loop

Círculo is one of the latest electronic developments in Versilia—an innovative electronic handover application exclusively designed by us.

Círculo has been created to capture critical data “real-time” and to update our systems directly to improve planning and traceability of Barset and Fresh Food

Together with our Last Mile Providers we have optimized the application for the drivers to have minimal manual entry. Data based on loading orders is uploaded to the devices; using QR codes to capture Aircraft registration and Barsets for 100% data accuracy; possibility to take pictures and crew signatures make this app a winner for all parties involved. Círculo is digitalizing a field which has always been fully manual, eliminating delays in tracking and ensuring instant visibility enabling us to reach faster to customer requirement.

Trent Powell Technical Delivery

ESG Environment, Social and Governance

are of increasing importance to companies in the aviation sector and beyond. To Versilia these are not just buzzwords but a key part of our company values.

Amit Jethwa Director CI & Projects

We understand the constraints of operating in the aviation sector and look for practical solutions to deliver a “greener” supply chain including local and ethical sourcing to minimize the carbon footprint and use of natural and recycled materials. We apply a “Just in Time” and “At point of need” philosophy to the retail program; replacing barsets only when stock levels require it.  Reducing loadings, reducing fuel burn and saving money!

We are proud of the fact that our 80 employees represent 19 different countries; our CEO and half our board are women; and we promote the Versilia Family culture. Our team can take 2 days a year off for charitable work, sporting events and shared experiences and can take advantage of our programme of well-being and healthy living advice.

Our JetSMART Argentina team ramp up for the charter season

Our account teams are always working to support their airlines in whichever way they can. In Argentina charters form an important part of JetSMART’s traffic over the summer months. Our colleagues in Buenos Aires have been working hard preparing for the season finalizing menus and plans and ensuring everything is in place for a smooth customer experience. Versilia is uniquely place to support airlines in the often complex task of charter catering as it is in our DNA to find the best partners and solutions wherever the location and whatever the timeline. Please get in touch if we can help your airline.