Re-Inventing Ancillary Revenue

It’s a great time to be in the travel business. Profits are soaring across the board, and ancillary revenue (the add-ons and extra fees travelers are offered, such as checked baggage, seat upgrades, destination car rentals, etc.) is driving much of that success.

But it’s coming at a high cost. The increase in fees, paired with higher earn and redemption barriers in loyalty programs, has sent consumer trust and loyalty to deep lows. Airlines now share the same dreaded space as banks and cable companies in the minds of consumers. Rough company, indeed.

All City Savings

We think there’s room for a shift back to more of a consumer focus. In fact, there’s a way for travel companies to enhance the customer experience while also continuing to gather those ancillary dollars that have become so important to their success.

Last month at the Airline Mega Event, Kelly Passey presented All City Savings, an ancillary revenue service that actually helps travelers save hundreds at restaurants and retailers at their destinations.

Check out the video below.

As he mentions in the video, All City Savings is already proving its value with a major international airline. Click here to check out the case study.

Make More by Being Better

News broke recently that a law is being considered that will prevent airlines from charging flyers for visiting the bathroom. Whether the law comes to fruition or not, it’s not a great sign that discussions of such a fee had reached the point where an outside party felt compelled enough to act.

Engaged, loyal customers spend more, more frequently than other customers. They sell brands to their friends, endure through unsatisfactory experiences, and countless more benefits. All of those are worth more than $10 to use the lav, right?

There’s an opportunity in the midst of this revenue heyday. Yes, profits are incredible, but what’s motivating consumers to return to a particular airline?

Those who provide value, and enhance the travel experience (even through extra charges) are going to pull in a larger share of bookings - and a larger share of satisfied customers.

(In flight entertainment image courtesy of Darren Cowley)