New stores opening at Mall of America

New stores opening at Mall of America

Friday, 24 June 2016 14:30

Located in...

ABTA issues statement on results of EU Referendum

ABTA issues statement on results of EU R…

Friday, 24 June 2016 09:29

With the result of yesterday’s referendum announced, and the British people voting to leave the EU, ABTA has released this statement:

Alaska debut in Funway's new US brochure

Alaska debut in Funway's new US brochure

Friday, 24 June 2016 08:00

Funway has issued its latest USA brochure which offers 180 pages of holidays, bookable for travel until December 31.

New accommodation options in Slovenia from Balkan Holidays

New accommodation options in Slovenia fr…

Thursday, 23 June 2016 11:30

Balkan Holidays is featuring three new four-star hotels in Kranjska Gora as part of its new seven-night walking holidays packages this summer.

InsideAsia Tours launches new ‘Family Adventures’

InsideAsia Tours launches new ‘Family Ad…

Thursday, 23 June 2016 08:00

InsideAsia has launched a ‘Family Adventures’ campaign in response to the growth in interest and demand from intrepid families looking for something a bit different for their summer trip.

New survey reveals British Millennials continue to disrupt traditional travel models

New survey reveals British Millennials c…

Wednesday, 22 June 2016 14:00

New global research from travel data platform ADARA reveals that Millennials in Great Britain are disrupting traditional models for travel.

Eurostar teams up with ITV essentials to offer popular British dramas to passengers

Eurostar teams up with ITV essentials to…

Wednesday, 22 June 2016 11:00

Eurostar and ITV Essentials have announced a new partnership which extends the range of entertainment available on board.

Norwegian launches new low-cost route from Edinburgh to Barcelona

Norwegian launches new low-cost route fr…

Wednesday, 22 June 2016 08:00

Norwegian has announced a new route from Edinburgh to Barcelona with fares from £34.90.

L’Amandier to open autumn 2016

L’Amandier to open autumn 2016

Tuesday, 21 June 2016 14:00

L’Amandier is a new hotel and villa collection opening in Morocco’s Ouirgane Valley for autumn this year.

Viking celebrates Norse Heritage with donation to RNLI

Viking celebrates Norse Heritage with do…

Tuesday, 21 June 2016 11:30

The newly-christened Viking Sea recently made a special call at one of Britain’s most northerly points, as part of its maiden voyage to show its support for the RNLI.

ETA relaunches Red Sea Riviera logo

ETA relaunches Red Sea Riviera logo

Tuesday, 21 June 2016 08:00

The Egyptian Tourism Authority (ETA) has announced it will relaunch its Red Sea Riviera logo for its marketing activities in the UK, as part of plans to extend the Red...

New Galápagos itineraries from Silversea

New Galápagos itineraries from Silversea

Monday, 20 June 2016 11:00

From March 25, 2017 Silversea will alternate two new seven-night Galápagos itineraries approved by the Galápagos National Park Service.

Airlines could be sitting on more than £112m this summer

Airlines could be sitting on more than £…

Monday, 20 June 2016 08:58

New research from money.co.uk reveals that 70% of delayed passengers don't claim for flight delays - something they are entitled to do if their flight is delayed by three hours...

Summer savings from Regent Seven Seas Cruises

Summer savings from Regent Seven Seas Cr…

Friday, 17 June 2016 14:00

Regent Seven Seas Cruises is offering customers a special summer saving to celebrate its upcoming 25th anniversary which takes place in 2017.

Explore Bordeaux from both air and land

Explore Bordeaux from both air and land

Friday, 17 June 2016 11:00

Luxury Relais & Chateaux hotel, Le Saint-James, has created an exhilarating ‘Oxygen Package’ that allows guests to experience Bordeaux in two unique ways; cruising through the city in a convertible...

Warner Leisure launches Second Chance Summer Sale

Warner Leisure launches Second Chance Su…

Friday, 17 June 2016 08:00

Warner Leisure Hotels has launched its Second Chance Summer Sale which offers guests 33% off all weekend breaks from June to August. The sale ends on June 26 and is available...

raphael-bejarWhen it comes to airlines' business models, there's no question that the last decade has been filled with turbulence – just pick your poison: rising fuel costs, political unrest, and a sluggish global economy. Fortunately ancillary revenues have done much to re-write that gloomy narrative.

 

But as much as ancillary revenues –both fee and serviced based – have aided airlines’ bottom lines, they’ve done so in a way that has benefitted travellers too by giving them choice: whether it’s the option to purchase weather protection insurance, seat preference, concierge services, or products designed to enhance their trip. Thanks, however, to increasing smartphone adoption rates averaging about 40% adoption in France, 42% in the US (with some demographics and income brackets at 60%) and more than 50% in both the UK and Spain, the technologies’ “always on” benefits means that travellers are reluctant to be disconnected from their mobile devices – even for the relatively short duration of a several-hour flight.

Partly due to this smartphone technological advance, there has been renewed focus on serviced-based ancillary revenue streams, as they are perceived to provide greater value versus other ancillaries that have been viewed as “nickel and diming” schemes, certainly within the United States.

Faced with this challenge, airlines have had to adapt, mining news ways to offer new services – well beyond traditional serviced-based ancillaries like travel insurance, car hire, or hotel booking. One revenue development comes from the clouds – literally. While airlines still can’t control the weather, they can help protect against a rainy day. Taking out weather protection cover gives travellers a pay out if bad weather disrupts their trip. Unlike traditional insurance though, weather protection is based on the cost mitigation formulas of large corporations and agribusinesses. For instance, if rainfall at a given location exceeds averages for the time in question or if the sun fails to show (again, at least less than what would be expected based on meteorological averages) a predetermined amount of money is automatically paid to them.

More than simply charging for a pillow or blanket, the above examples demonstrate that the airlines industry really is thinking outside the traditional ancillary revenue box. For passengers, the expression “getting there is half the fun,” was never more accurate. The other half, of course, comes down to the wealth of exciting new and sustainable ancillary revenue sources throughout the entire booking process. Travellers are eager to embrace these new offerings. Airlines must continue delivering on their needs, ensuring smooth skies for all.

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