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Blog de Pablo Roux
06 de Abril, 2010 · General

Boosting ancillary revenue

In the 80's ancillary revenue was related to on board sales. Ancillary Revenue Director spent time honing and investigating how to generate revenue margins regarding inflight duty free sales revenue. In the 1990s and 2000's with the emergence of internet & no-frills airlines the travel market has moved to a more dynamic on-line business scenario where price and marketing were key to generate revenue, with the accelerating pace of change in the business environment Ancillary Revenue Directors change their way of thinking and focused in optimizing sales of services/options related to travel such insurance, hotels, rent-a-car and frequent fliers programmes. Now while the industry continues to encourage passengers to travel with fewer bags, many European and North American carriers benefit from ancillary revenue related to baggage charges. For example based on financial disclosures by airlines and estimate of applicable traffic and revenue United Airlines got 5.81 USD of annual revenue from checked baggage per passenger in US domestic flights while EasyJet USD 4,75.

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► Aviation Consultant & Professional ► Entrepreneur ► Experienced Transportation Executive

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