To further drive in my point in my previous post on Property Bubble and a possible “irrational exuberance”:
http://www.relax.com.sg/relax/news/326940/Hello_this_is_your_in_flight_property_agent.html
HONG KONG: People appear happier shopping at 10,000m above ground than on land, helping some Asian airlines’ in-flight sales to return to their pre-financial crisis levels well before a full recovery in their ticket sales.
In-flight shopping has undergone a radical change from the days when one could buy only perfume and liquor. The variety of products offered is getting wider and stranger – from foldable bicycles to bed frames, and soon perhaps even a house.
Spring Airlines, a Shanghai-based budget airline, is exploring selling property on board, the South China Morning Post reported yesterday.
‘We are negotiating the idea with some property developers,’ Mr Zhang Wuan, a spokesman for the carrier, confirmed, noting that there are some problems involving legal procedures and staff training.
Selling real estate in-flight may not be too much of a stretch, as some travellers already spend a small fortune shopping in the air. A passenger on a Cathay Pacific flight bound for a South-east Asian country bought a Rolex Vintage watch priced at HK$195,000 (S$35,450) in mid-2008, the Post said.
Many airlines are also searching for innovative ways to expand their in-flight retailing to the ground. One idea is a home-delivery service. Carriers such as Cathay Pacific, China Airlines and Singapore Airlines will home-deliver bulky items.
‘People tend to spend more when they are on board, boosted by the holiday mood,’ said Mr Johnson Sun, Hong Kong general manager of Taiwan’s China Airlines (CAL).
‘It is a contrast to how price-sensitive they are when it comes to air fares.’
Deep-pocketed travellers from Shanghai, Guangzhou and Shenzhen buy big on board, especially of white wine, Mr Sun said.
CAL had record in-flight sales of US$5 million (S$7 million) in December, the Post reported.
CAL and Cathay Pacific – the two airlines that operate more flights in and out of Hong Kong than any other carrier – said their in-flight sales have fully recovered, even though receipts from ticket sales are still below those of 2007 because fares remain low.
Cathay’s duty-free sales returned to pre-crisis levels in the final three months of last year. Sales in December were up 27 per cent, year on year, a record monthly increase.
The top-selling items are skin care products, watches and electronic goods, said Ms Jasmine Hui, Cathay Pacific’s in-flight sales and logistics manager.
Surprisingly, the fewer passengers there are on board, the higher the sales, said Mr Tony Detter, Hong Kong managing director of the In-flight Sales Group, which supplies in-flight products to Asian carriers.
‘The cabin crew may be overworked and find it difficult to devote as much time or attention to the service if the flight is full,’ he said.
So, if the sale of real estate on-board aircraft takes off, one could perhaps find in-flight property agents showering attention on potential buyers.
I think this is nonsense….