That’s my mission and it’s based upon a belief that ancillary revenue benefits consumers and the airlines that fly them.
Since the Amadeus Worldwide Estimate of Ancillary Revenue was first issued in 2010, the numbers posted in regions all over the world have demonstrated convincing increases.
I remember the folly of a prediction made by the chairman of one of Europe’s leading airlines about 20 years ago. He said European travelers would not embrace the “American sickness” known as frequent flier programs.
I shook my head in disbelief. The man didn’t know his customers. Almost everyone on the planet enjoys the words “free of charge.” Years later, every major airline in the world undoubtedly considers their frequent flier program to be a crucial commercial element for revenue success.
There was similar doubt expressed by airline leaders in 2005 when the low cost airline industry was just taking off in India. I recall reading commentary that consumers in India would reject the low cost model if it didn’t deliver a free hot meal on domestic flights.
Again, I shook my head in disbelief. Almost every consumer will defer curry and a Coke if they can save some cash. And now years later, the skies of India are filled with carriers that offer buy-on-board programs, such as GoAir, IndiGo, JetKonnect, and SpiceJet.
You can imagine my surprise when I read most airlines will never abandon the perk of a free checked bag. In reality, it’s becoming a major area of consulting activity that airlines all over the globe now request. It’s only part of my humble goal to help cure this patient of its perpetual ailment of profit paralysis.
Have a look at the full press release for more details.
Ancillary revenue comes from all different places and airlines just need to think more laterally to get ahead of the game – or into it. The best ideas are often the easiest to implement and take the least amount of time.
“Me too” is fine if you want to be a follower but doing something different(or the same better) is how the leaders maintain that position.
It is fair to day that IT generally doesn’t come up with new ideas. Sometimes they implement “crazy” ideas dreamed up by forward thinkers – if they are not to busy maintaining existing company infrastructure.
Now when Airlines are in tough situation to meet their operations cost, New Marketing strategies are having tremendous scope to grow to fetch additional and ancillary revenue any how from the customers.
In short, Today is the Era of Ancillary Revenue generation and it needs primarily IT support to reach consumer touch points.
Now the role of major IT hubs are critical as their success in this area will decide the future of Airlines.
Regds.
Gyan Singh
Air India
And eventually airlines will realise that if “on-board sales” are converted to pre-flight “off-board sales” they will have another revenue stream.