In the past decade, ancillary revenue has become a key component for airline profitability. Just before the coronavirus pandemic hit, airlines were making between 8% and 34%1 of their revenue from selling ancillaries, or a total $109.5 Billion2 annually. A significant share of ancillary revenue is generated from à-la-carte fees paid for checked baggage, assigned seats, buy-on-board meals, early boarding, and onboard entertainment.
To drive demand and revenues in the recovery period, airlines state that ancillaries and merchandising will be among the top thee initiatives in their retail strategies, together with pricing and revenue optimization3. Take a look at the infographic to learn some of the key tactics for ancillary upsell that help airlines manage their ancillary products and pricing across channels and markets to drive ancillary sales.
1, 2 – IdeaWorksCompany/CarTrawler 2019 3 – PROS Survey September 2020
About the AuthorMore Content by Stanislava Yordanova