Posted by Holger Taubmann (SVP Distribution, Amadeus IT Group) Airlines are forecast to benefit from an 11.3% increase in ancillary revenue for 2012 worth more than $3.6 billion, according to the third annual Amadeus Worldwide Estimate of Ancillary Revenue. Research conducted by IdeaWorksCompany for the report indicates that the global revenue generated beyond flight sales [...]
Read moreAs the current Amadeus Review of Ancillary Revenue Results for 2011 by IdeaWorks shows, airlines achieved an impressive 66% increase in revenue from ancillary services between 2009 and 2011. With travellers able to customise their trips thanks to a wide range of optional extras – everything from loyalty programmes to extra legroom – ancillary revenue [...]
Read moreAncillary revenue has become a crucial factor in fiscal viability for airlines all over the world. Few airlines ignore this phenomenon entirely, and more each year rely on it heavily. At US-based Spirit Airlines, a la carte fees and other ancillary revenue activities now yield 33 percent of total revenue. The combined behemoth of United [...]
Read moreWe are happy to announce that Amadeus has won the prestigious 2012 Innovation Award of l’Echo Touristique, one of the leading trade publications in France, in the B to B category for its new rail tool, Amadeus Agent Track. Amadeus Agent Track is a groundbreaking Rail solution that allows travel agencies to book Rail content [...]
Read moreI must confess, there is a wee bit of “Jay Sorensen the parent” in the latest report from IdeaWorksCompany. It’s often easy to blame teachers, society, and television for the sometimes less-than-perfect behavior of my children. It’s definitely more difficult to look inward and assess where I should improve as a parent. As children grow [...]
Read moreA recent post introducing IdeaWorks’ latest report on A la Carte shopping is a fresh contribution to the ongoing discussion of a topic that is highly relevant in today’s turbulent airline industry. Many airlines are adopting low-cost carriers’ unbundling strategies, while many others maintain a strategy of keeping a bundled product offering. Regardless of their strategic [...]
Read moreThe ultimate compliment for the consumer acknowledges the right to choose I chose a ‘shocking’ title for this report to garner attention. I also added a sub-headline that is difficult to dispute – even though debates rage about ancillary fees. When dramatic change occurs, there is always a tendency to cling to the past. It [...]
Read moreThe European Parliament this week adopted the Taylor Report on Passenger Rights with an overwhelming majority vote. The report calls on the Commission to strengthen legislation to ensure price transparency and combat unfair commercial practices by some airlines. The report also calls on harmonisation of industry standards, for example on baggage rules. The practice of [...]
Read moreYou know the story. Airlines are continually striving to compensate for low headline fares with add-on charges and – especially – with ancillary revenue: advance seat reservation, on-board sales, and so on. But how to push those ancillary revenues still further? Closer airline/airport relationships are already on the cards: some European airlines are asking for [...]
Read more“On ancillaries, the sky really is the limit”. This was the opening salvo of the New Airline Commercial Models, Retailing and Merchandising 2012 conference, which gathered industry experts in London last week to explore new ways of distributing airfares and inventory. As we heard at the conference, there are over 50 different types of ancillary services [...]
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