Study finds changes in ancillary travel selling ahead
Expect a change in many ancillary travel revenue strategies next year, with more emphasis on up-selling and cross-selling, according to a new survey from Collinson Latitude.
The global provider of incremental revenue and membership products found almost half of those surveyed believed cross-selling and up-selling through the booking process will be the fastest-growing area of ancillary revenues for the travel businesses in 2012.
Furthermore, almost one-third of respondents predict that non-travel related product sales will play a pivotal role in the future of ancillary revenues.
Said Collinson Latitude director Janet Titterton:
“We surveyed loyalty and ancillary revenue managers, particularly across the airline industry, and the results encouragingly prove the industry is seeking to maximize the benefits of customer data insight. With travel companies holding so much knowledge about their customers, cross-selling and up-selling strategies can be tailored to match benefits and promotions to customers’ wider profiles.”
At the same time, however, the survey indicates conventional travel-related offers will remain important in ancillary revenue programs.
Among respondents, 19 percent predict greater cross-selling and up-selling of travel-related products through the booking process, while 21 percent predict an increase in on-board ancillary revenues for airlines.
“Traditional travel-related ancillary revenues will clearly remain important. For example, 22 percent of survey respondents currently implement ancillary revenues by unbundling previously packaged products and services,” said Titterton, who added:
“However, this process needs to be handled carefully: although ancillary revenues can bring costs down for customers – as unwanted services are no longer paid for – the perception is often very different. As services previously viewed as ‘free’ become billed separately, the travel industry needs to demonstrate to customers that such services really do provide choice and value for money.”
By David Wilkening
David
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