Diamond Rail Holidays boosts Switzerland offering

Diamond Rail Holidays boosts Switzerland offering

Friday, 05 February 2016 14:00

Diamond Ra...

Monarch research reveals the nation's changing holiday habits

Monarch research reveals the nation's ch…

Friday, 05 February 2016 10:00

Pre-schoolers enjoying sunshine breaks in far flung resorts, and silver surfers checking in online – the way the nation holidays has never been so adventurous according to new research from...

United Airlines to operate longest scheduled flight

United Airlines to operate longest sched…

Thursday, 04 February 2016 12:00

United Airlines has announced that it will introduce daily non-stop flights between San Francisco and Singapore from June 1 (westbound), subject to government approval.

Warner Leisure Hotels launches premium drinks package

Warner Leisure Hotels launches premium d…

Thursday, 04 February 2016 08:30

Guests visiting one of Warner Leisure Hotels’ 13 country or coastal properties during 2016 can receive more value for money when they upgrade to the brand’s premium drinks package.

myvouchercodes creates holiday generator

myvouchercodes creates holiday generator

Wednesday, 03 February 2016 15:00

When it comes to deciding where to go on holiday the world of options can prove a little overwhelming. So to help with holiday decision making process myvouchercodes.co.uk has created...

New reward scheme for agents from Silversea

New reward scheme for agents from Silver…

Wednesday, 03 February 2016 12:30

Silversea Cruises has announced details of a new reward and recognition programme for travel agents and homeworkers.

‘Flavours’ itinerary from Back Roads

‘Flavours’ itinerary from Back Roads

Wednesday, 03 February 2016 08:30

As part of its line up of tours for 2016, Back Roads Touring has an eight-day ‘Flavours of Northern Croatia and Slovenia’ itinerary with departure dates from May through to...

Taking a year off to travel tops most bucket lists according to new survey

Taking a year off to travel tops most bu…

Tuesday, 02 February 2016 12:30

Taking a year off work and travelling is top of most Brits’ bucket lists, including visiting America and Australia, going to see the Great Wall of China and the Pyramids,...

2017 USA availability from Funway

2017 USA availability from Funway

Tuesday, 02 February 2016 08:30

Funway is highlighting its range of 2017 holidays to the USA which are now available to book, along with a selection of exclusive offers and early booking savings.

Hurtigruten heads for the Amazon

Hurtigruten heads for the Amazon

Tuesday, 02 February 2016 08:30

'Expedition to the Amazon Rainforest' will be Hurtigruten's first inland voyage. The 16-night expedition starts in Manaus deep inside the Brazilian rainforest, sailing down the Amazon.

Emerald Belle damaged in shipyard fire

Emerald Belle damaged in shipyard fire

Monday, 01 February 2016 12:15

Emerald Waterways has reported that a late night fire broke out at the Den Breejen Shipyard in the Netherlands where the company’s newest ship, the Emerald Belle, was under construction.

Party packages on sale with DoSomethingDifferent.com

Party packages on sale with DoSomethingD…

Monday, 01 February 2016 08:30

Following increased demand from agents, DoSomethingDifferent.com is now offering a range of clubbing packages in Europe’s party capitals, including Ibiza, Kavos and Ayia Napa.

Flight savings for WTM Events

Flight savings for WTM Events

Friday, 29 January 2016 15:27

Attendees to the World Travel Market portfolio can take advantage of discounted air fares with oneworld airlines following a deal between the alliance and WTM's parent company Reed Travel Exhibitions...

Perth’s reinvention continues

Perth’s reinvention continues

Friday, 29 January 2016 12:00

Australia’s city of Perth has seen unprecedented growth in the last few years, a trend which is set to continue with more 2,000 hotel rooms to be added by 2020.

Anatolian adds luxury beach option to 2016 programme

Anatolian adds luxury beach option to 20…

Friday, 29 January 2016 08:30

Anatolian Sky Holidays has expanded its portfolio in Slovenia, adding to the options along the country’s small, but beautiful, coastline.

New wine-themed cruises from The River Cruise Line

New wine-themed cruises from The River C…

Thursday, 28 January 2016 12:00

The River Cruise Line has launched two eight-day cruises for summer 2016 to some of Europe’s most beautiful wine regions.

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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