LATA welcomes boost in flights to Latin America

LATA welcomes boost in flights to Latin America

Tuesday, 01 September 2015 12:00

The Lati...

Intrepid Travel launches North Korea Marathon Expedition trip

Intrepid Travel launches North Korea Mar…

Tuesday, 01 September 2015 07:00

Elite athletes and budding runners alike now have the rare opportunity to add North Korea to their marathon list and get a glimpse of the world’s most secretive country on...

2016 preview brochure from Warner Leisure Hotels

2016 preview brochure from Warner Leisur…

Monday, 31 August 2015 12:00

Warner Leisure Hotels has issued its 2016 preview brochure featuring early booking offers plus information on new breaks, new entertainment, activities, new bedroom suites, the latest developments and pricing.

Autumn sale from Sandals and Beaches Resorts

Autumn sale from Sandals and Beaches Res…

Monday, 31 August 2015 07:00

Sandals Resorts International has launched an autumn sale which runs until September 22.

Free Family festival on Dover’s seafront

Free Family festival on Dover’s seafront…

Friday, 28 August 2015 14:00

The Port of Dover Community Regatta is to take place this Sunday, August 30.

Crystal River Cruises to launch in March 2017

Crystal River Cruises to launch in March…

Friday, 28 August 2015 12:00

Crystal River Cruises, which launches in March 2017, has unveiled detailed plans for its collection of two Crystal river yacht vessels.

Winter seat sale from SAS

Winter seat sale from SAS

Friday, 28 August 2015 10:00

Scandinavian Airlines has released thousands of low fare seats for travel to Scandinavia available to book until midnight September 1, from £62 one way.

New all-inclusive resort to open in Barbados this November

New all-inclusive resort to open in Barb…

Friday, 28 August 2015 07:00

This November sees the opening of a new style of all-inclusive property on Barbados with the launch of Sugar Bay Barbados.

Gatwick set for busiest ever August Bank Holiday weekend

Gatwick set for busiest ever August Bank…

Thursday, 27 August 2015 17:00

Gatwick is preparing for its busiest ever August Bank Holiday weekend as 580,000 passengers plan to travel through the airport.

FLIO app launches for iOS devices

FLIO app launches for iOS devices

Thursday, 27 August 2015 12:00

FLIO is a new global airport app which aggregates information from airports around the world and gives travellers exclusive retail offers and one-click access to airport Wi-Fi.

Flight sale from Aegean

Flight sale from Aegean

Thursday, 27 August 2015 10:00

Aegean is offering discounts on published fares for direct flights to and from Greece and Cyprus.

2016/17 brochure launch from China Links Travel

2016/17 brochure launch from China Links…

Thursday, 27 August 2015 07:00

China Links Travel has announced the release of its 2016-2017 brochure.

Fidenza Village marks Expo Milano with events & shopping packages

Fidenza Village marks Expo Milano with e…

Wednesday, 26 August 2015 12:00

Fidenza Village, one of the Collection of Villages by Value Retail located 60 minutes from Milan and Bologna in Italy, is offering a selection of events and packages to mark...

RCI introduces Royal Suite Class experience

RCI introduces Royal Suite Class experie…

Wednesday, 26 August 2015 07:00

Royal Caribbean International has launched Royal Suite Class, designed for the most discerning adventurers and offering a range of benefits and amenities.

LATA unveils new strategy to boost travel to Latin America

LATA unveils new strategy to boost trave…

Tuesday, 25 August 2015 12:00

The Latin American Travel Association (LATA), the travel trade association that promotes travel to the destinations of Latin America, has developed a new strategy, with the objectives being to promote...

Dreamland to host three Services Days in September

Dreamland to host three Services Days in…

Tuesday, 25 August 2015 10:43

Dreamland Margate has announced that over the first weekend of September local services and forces across Kent will be eligible for discounted entry.

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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