Viking announces Christmas and New Year Sailings

Viking announces Christmas and New Year Sailings

Friday, 29 July 2016 13:36

For those ...

Jordan Tourism Board launches ‘ExtraJORDANary’ campaign

Jordan Tourism Board launches ‘ExtraJORD…

Friday, 29 July 2016 11:48

The Jordan Tourism Board (JTB) has launched a new marketing campaign, investing in excess of half a million pounds. Dubbed the ‘ExtraJORDANary’ campaign, it aims to continue to support UK...

Gatwick marks busiest day with 2016’s need-to-know holiday phrases

Gatwick marks busiest day with 2016’s ne…

Friday, 29 July 2016 08:57

Today is set to be Gatwick Airport’s busiest day of departures, with 85,000 passengers due to take flight. In aid of this and to prepare holidaymakers for their trip, the...

Philippines completes King’s Cross Station takeover

Philippines completes King’s Cross Stati…

Thursday, 28 July 2016 11:00

As part of the Visit the Philippines Again 2016 campaign the Philippine Department of Tourism has just completed the second stage of its station domination series at King’s Cross station.

MARITIM completes refurbishment of Hotel Stuttgart

MARITIM completes refurbishment of Hotel…

Thursday, 28 July 2016 09:08

MARITIM Hotels has come to the end of a major refurbishment programme on its property in Stuttgart.

MSC Cruises design poster-perfect travel guides

MSC Cruises design poster-perfect travel…

Wednesday, 27 July 2016 13:00

MSC Cruises have depicted five of their key port destinations in illustrated posters to help customers learn more about each location and its offering.

Sandals and Beaches launch summer sale

Sandals and Beaches launch summer sale

Wednesday, 27 July 2016 11:00

Sandals Resorts International has launched its sale with savings of up to 55% on Luxury Included (all-inclusive) holidays to Sandals and Beaches Resorts in the Caribbean.

Kirker Holidays offers extra nights for summer city breaks

Kirker Holidays offers extra nights for …

Wednesday, 27 July 2016 08:00

Celebrating its 30th anniversary this year, Kirker Holidays is promoting its three nights for the price of two at the five-star Hotel De Rome in Berlin.

Go catch more Pokémon in LA

Go catch more Pokémon in LA

Tuesday, 26 July 2016 13:00

With Pokémon Go mania gripping the world, Discover L.A. has revealed the best locations around the city for Pokémon catchers – from bars offering specials to rental bikes equipped with...

Neilson launches its first booking site for agents

Neilson launches its first booking site …

Tuesday, 26 July 2016 11:00

Neilson has launched a dedicated online booking site providing UK travel agents with the tools to promote and sell Neilson holidays.

Festive short breaks with Funway Holidays

Festive short breaks with Funway Holiday…

Tuesday, 26 July 2016 09:10

Funway Holidays has put together a selection of special pre-Christmas themed short break holidays.

Saga embarks on five country trans-African adventure

Saga embarks on five country trans-Afric…

Monday, 25 July 2016 14:44

Saga Holidays has put together a 26-night adventure combining Kenya, Botswana, Zimbabwe, South Africa and Ethiopia in a single ‘Ultimate Africa’ trip.

Santiburi celebrates £20 million renovation with new family package

Santiburi celebrates £20 million renovat…

Monday, 25 July 2016 11:00

Celebrating its 25th anniversary and re-launch after a £20 million renovation, Koh Samui's Santiburi Beach Resort & Spa has launched a new family package.

My Emirates Pass lands in Dubai

My Emirates Pass lands in Dubai

Friday, 22 July 2016 11:00

Emirates Airline passengers can experience more of Dubai this summer with discounts and exclusive offers available across the city with the ‘My Emirates Pass’, launched jointly with Department of Economic...

New Year, New You with HF Holidays’ 2017 Mindful Retreats

New Year, New You with HF Holidays’ 2017…

Friday, 22 July 2016 08:00

HF Holidays has unveiled its new selection of breaks to see in the 2017 New Year in style.

Cruise & Maritime Voyages extends BOGOF deal

Cruise & Maritime Voyages extends BO…

Thursday, 21 July 2016 14:00

Cruise & Maritime Voyages (CMV) has announced an extension of its current ‘Buy One Get One Free’ deal until the end of July, as well as a new promotion.

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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