01 April 2009

Airlines shown benefits of selling ancillary products

Airlines are being urged to sell ancillary products in order to boost their revenues.

Collinson Latitude, which provides ancillary revenue programmes, said its study has shown that airlines can make at least an extra $6 per passenger by offering services above and beyond ticket sales.

"The ancillary revenue model has become an important financial component for the airline industry with leading budget carriers Ryanair and EasyJet documenting that approximately an additional $12 per passenger was made through ancillary revenues in 2007," said the company.

"Ancillary revenue programmes also deliver further benefits for airlines in providing opportunities to implement loyalty building initiatives that deliver detailed customer insight, further strengthening the brand’s long-term relationship with the customer."

By Bev Fearis
 

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• Anncillary Revenues: yes, but...
  
  

  Ancillary revenues are to become a lifebelt for many airlines in order to secure their melting yields in current turbulent times. Some of them have developed very "creative" ideas on this. However, its the passenger who has to pay for these "basics" and goodies at the cost of a more and more increasing intransparency of the final bill - inspite of recent EU directives!

  By andreas w. schulz, Monday, April 6, 2009