Travelmole guest comment – Euromonitor International travel and tourism manager EMEA Clement Wong

Services and in-flight catering, otherwise known as frills in the aviation industry, are being increasingly charged for by legacy carriers, according to the latest research from Euromonitor International.

Frills, which have traditionally been included within the standard price of an airline ticket, are now being used as a source of revenue.

Legacy airlines such as Austrian Airlines have already begun charging travellers for airline food. This trend is growing in response to the increasing dominance of low cost carriers within the global travel market, who are now encroaching into the long haul sector.

In line with the increased customisation trend in the travel industry, the aviation industry is evolving its product from a “one size fits all” offer of ticket price covering flight, luggage carriage, meal and in-flight entertainment.

Ryanair’s CEO Michael O’Leary has described the airline industry as being similar to the cinema industry, with non-ticket sales generating more revenue than ticket sales.

As low cost carriers appeal to a segment of the market that includes an increasing number of first time travellers, Euromonitor International’s research shows that fewer people now expect flights with frills.

This has lead travellers to question whether they need the complimentary in-flight meal on intercontinental flights served just before bedtime or in the middle of a sleep cycle just before landing at their destination.

With improved technology empowering customers and carriers alike, dynamic frilling is likely to become more available.

An example of a more innovative service is that of Oasis Hong Kong Airways, which offers low cost long haul flights with personalised entertainment, plus the option of paying for frills such as pre-ordered vegetarian, diabetic or kosher meals.

In comparison, KLM, which does not provide personalised entertainment and serves traditional airline fare, offers no room for customisation, undermining the legacy price system.

Monarch, is another variation of this theme as a low cost carrier with frills, allowing passengers to pay more for extra legroom or a pre-allocated seat.

The pay per frill model incurs an increased level of customised service, which stretches the role of the in-flight attendants further, akin to the current business class service.

In addition, the jury is still out on the pros and cons of in-flight calls.

As with Oasis charging for in-flight drinks, paid-for customised service may prove to be cumbersome and difficult to manage, especially on long haul flights for low cost carriers.

Even faced with potential challenges, airlines are advised to extend the pay per frill model to the pre- and post-boarding part of the flight.

Airlines could charge for VIP check in, the use of lounges, luggage reclaim priority, transit concierge and luggage reclaim priority services in order to boost revenues.

Euromonitor International predicts that the industry will head towards this dynamic, pay per frill model, and be embraced whole-heartedly by travellers – if the price is right.

Euromonitor International travel and tourism manager EMEA Clement Wong