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
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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