Votes for Travel Bulletin Star Awards now OPEN!

Votes for Travel Bulletin Star Awards now OPEN!

Friday, 29 April 2016 14:11

Agents - c...

Wendy Wu Tours highlights Bhutan visit

Wendy Wu Tours highlights Bhutan visit

Friday, 29 April 2016 11:56

Wendy Wu Tours is promoting two trips where travellers can follow in the footsteps of the Duke and Duchess of Cambridge’s royal tour to India and Bhutan.

Scenic reaches new South East Asia shores

Scenic reaches new South East Asia shore…

Friday, 29 April 2016 08:30

Scenic has issued its latest South East Asia brochure for intrepid explorers to begin planning their next luxurious adventure featuring a new itinerary.

The Champagne Tour Co. launches child-friendly excursions with 25% saving

The Champagne Tour Co. launches child-fr…

Thursday, 28 April 2016 14:00

With Brits drinking more champagne than any other nation, many parents would love to visit the champagne region themselves to learn more about their favourite tipple, but are reluctant to...

Thailand offers from Premier Holidays

Thailand offers from Premier Holidays

Thursday, 28 April 2016 10:57

Premier Holidays has unveiled a hand-picked selection of new special offers promoting holidays to Thailand as part of a new destination marketing campaign.

Cuba addition from TravelCube

Cuba addition from TravelCube

Wednesday, 27 April 2016 12:00

TravelCube has put on sale more than 130 hotels in Cuba, including historic Havana, making it easier and more efficient for agents to book trusted, quality accommodation.

RCI unveils multi-day adventures

RCI unveils multi-day adventures

Wednesday, 27 April 2016 08:30

Royal Caribbean International has launched a new Multi-Day Adventures programme, which offers holidaymakers immersive two-day overnight explorations that include more adventure and provide guests with the chance to go further,...

New luxury ski resort in China from Club Med

New luxury ski resort in China from Club…

Tuesday, 26 April 2016 12:00

Club Med has announced the opening of its highly anticipated Chinese ski resort, based in Beidahu, becoming the second of the company’s Chinese ski resorts and its fifth resort in...

European Waterways launches whisky trail cruise

European Waterways launches whisky trail…

Tuesday, 26 April 2016 08:30

European Waterway is offering a range of themed charter cruises, featuring specialised itineraries that allow passengers the chance to experience the history and culture of Europe, including a new Whisky...

EU referendum remains an undecided matter for Advantage members

EU referendum remains an undecided matte…

Monday, 25 April 2016 12:00

With June 23 fast approaching, and the issue over whether Britain should exit or remain part of the EU firmly at the forefront of current political debate, Advantage conducted a...

Virgin Trains opens First Class Lounge at King’s Cross

Virgin Trains opens First Class Lounge a…

Monday, 25 April 2016 10:00

New-look Virgin Trains First Class Lounge has been opened at King’s Cross Station following a stylish makeover.

Explore the heart of Persia with Golden Eagle’s new tour

Explore the heart of Persia with Golden …

Friday, 22 April 2016 12:00

With the lifting of economic sanctions and the FCO relaxing its advice against travel to most parts of the country, Iran is set to be a travel hotspot for 2016.

Intrepid celebrates National Park centenary with new trips

Intrepid celebrates National Park centen…

Friday, 22 April 2016 08:30

Intrepid Travel is marking the 100th anniversary of the US National Park Service this year with a collection of new trips that will take travellers deep into the American wilderness.

China Links adds Japan training to agent portal

China Links adds Japan training to agent…

Thursday, 21 April 2016 12:00

China Links Travel, in cooperation with the Japan National Tourism Organisation (JNTO), has introduced a new training module to its website for agents to discover more about the destination and...

Montréal to gain new UK flight routes from May

Montréal to gain new UK flight routes fr…

Thursday, 21 April 2016 08:30

Three airlines will be launching new routes from the UK to Montréal from next month.

Discover Egypt offers seven-night package from £1,499

Discover Egypt offers seven-night packag…

Wednesday, 20 April 2016 15:00

Discover Egypt is offering travellers the chance to experience some of the lesser known areas of Egypt, with a seven-night package Lake Nasser and Aswan.

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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