Saint Lucia celebrates Chocolate Heritage Month

Saint Lucia celebrates Chocolate Heritage Month

Friday, 31 July 2015 14:05

This Aug...

Red Sea & Dahab dominate Olympic Holidays’ Egypt programme

Red Sea & Dahab dominate Olympic Hol…

Friday, 31 July 2015 11:02

Olympic Holidays has launched its Winter Sun 2015/16 brochure with additional hotels in Egypt.

Rail and Ale with Railtrail Tours

Rail and Ale with Railtrail Tours

Friday, 31 July 2015 10:52

Railtrail Tours combines the thrills, sights and smells of a day at a steam gala with visits to the best local breweries on its ‘Steam, Rail & Ale’ (and malt)...

Scoot Ferries to run special Cowes Week service

Scoot Ferries to run special Cowes Week …

Thursday, 30 July 2015 09:21

Scoot Ferries Ltd has announced that it will be running a special, scheduled ferry service for this year’s Aberdeen Asset Management Cowes Week.

Shearings launches 2015/16 Autumn & Winter brochure

Shearings launches 2015/16 Autumn & …

Thursday, 30 July 2015 08:57

Shearings Holidays has issued its 2015/16 Autumn Winter programme with new breaks and details on its Christmas and New Year holiday range.

Extended summertime hours at Gardaland Resort

Extended summertime hours at Gardaland R…

Thursday, 30 July 2015 08:47

Until September 13, Gardaland Resort is extending the park’s opening times until 23:00, following the success of its evening event, ‘Gardaland Night is Magic’.

Ranch Rider adds Epic Namibian Horseback Safari

Ranch Rider adds Epic Namibian Horseback…

Wednesday, 29 July 2015 09:05

Ranch Rider is introducing a new 30-day mobile horseback adventure to its Africa collection.

Hotel Football books into the Quays Partnership

Hotel Football books into the Quays Part…

Wednesday, 29 July 2015 08:50

Football themed Hotel Football has joined The Quays Partnership, a group that promotes Greater Manchester's waterfront destination as a tourism destination in Britain.

Electric cars charge into Birmingham Airport

Electric cars charge into Birmingham Air…

Wednesday, 29 July 2015 08:31

Birmingham Airport has become one of the first British airports to join the Electric Highway and offer fast charging for electric motorists.

Rainbow Tours launches new Madagascar trips

Rainbow Tours launches new Madagascar tr…

Tuesday, 28 July 2015 08:14

Rainbow Tours has released a series of new Madagascar itineraries including a group tour led by destination expert Daniel Austin, plus a new tailor-made trip focusing on birding. The operator has...

Taber presents Icelandic package from £775

Taber presents Icelandic package from £7…

Tuesday, 28 July 2015 08:05

Taber Holidays is promoting a three-night stay in Reykjavik from £775 including a full-day Golden Circle excursion, which takes in some of Iceland’s most spectacular sights such as the geyser...

Grain Store Café & Bar to open this autumn at Gatwick Airport

Grain Store Café & Bar to open this …

Tuesday, 28 July 2015 08:00

Gatwick is to be home to the first offshoot of Chef Bruno Loubet and The Zetter Group’s Grain Store restaurant in King’s Cross, opening autumn 2015.

Nile cruise options from Anatolian Sky Holidays

Nile cruise options from Anatolian Sky H…

Monday, 27 July 2015 08:45

Anatolian Sky Holidays’ new Winter Collection brochure features a choice of options for clients in search of winter cruise options along the Nile.

TripAdvisor launches dedicated airport pages

TripAdvisor launches dedicated airport p…

Monday, 27 July 2015 08:41

TripAdvisor has launched dedicated airport pages, enabling travellers around the world to get information about what to do, where to eat and where to stay at 200 major airports around...

Butlin’s launches Little Mix show

Butlin’s launches Little Mix show

Monday, 27 July 2015 08:35

Fans of the British girl group Little Mix can ‘Salute’ their music with the company’s own singers and dancers in a new show for 2015.

Saga presents 17-night ‘Grand Tour of China’ option

Saga presents 17-night ‘Grand Tour of Ch…

Friday, 24 July 2015 07:00

Saga’s new escorted tour and river cruise offers guests an immersive discovery of ancient and modern China, including visits to ‘must see’ sights for first time visitors.

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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