Wendy Wu & Club Med team up to offer new China trips

Wendy Wu & Club Med team up to offer new China trips

Thursday, 29 September 2016 11:00

Wendy Wu T...

Cape Town leads the field in Post Office Travel Money’s Long Haul Holiday Report

Cape Town leads the field in Post Office…

Thursday, 29 September 2016 08:00

After three years at the top of the best value rankings, price rises in Bali mean the Far Eastern favourite has been overtaken by Cape Town, which emerges as the...

Avalon Waterways supports CLIA’s ‘Plan a Cruise Month’

Avalon Waterways supports CLIA’s ‘Plan a…

Wednesday, 28 September 2016 14:00

Avalon Waterways is supporting CLIA’s ‘Plan a Cruise Month’ in October with savings of up to £1,350 per person and a free case of wine from Virgin Wines worth £140.

Top seats for André Rieu concert with Saga

Top seats for André Rieu concert with Sa…

Wednesday, 28 September 2016 11:00

Top seats at an André Rieu concert in Cologne, Germany, have been secured for Saga guests sailing on the music-themed cruise along the Rhine and her Tributaries on March 7,...

New airline launches from Luton Airport

New airline launches from Luton Airport

Wednesday, 28 September 2016 08:00

A new airline, Fly KISS, will commence three services from Luton Airport (LLA) on November 7, serving Clermont-Ferrand, Brest and Strasbourg.

Winter warmer flight deals with Air Transat

Winter warmer flight deals with Air Tran…

Tuesday, 27 September 2016 14:00

Air Transat is giving agents the chance to book winter warmer flight deals to the East and West Coast of Canada from £301 per person, when booked by October 4.

City Cruises adds multi-million boat to fleet

City Cruises adds multi-million boat to …

Tuesday, 27 September 2016 11:00

Last week saw the launch of City Cruises’ multi-million pound boat, the City Alpha.

Travel agents risk losing custom by playing generic music on hold

Travel agents risk losing custom by play…

Tuesday, 27 September 2016 08:00

Travel agents’ call handling standards have come into question as the result of a major new study into telephone practice.

Jet2.com & Jet2holidays land at Stansted

Jet2.com & Jet2holidays land at Stan…

Monday, 26 September 2016 14:00

Jet2.com and Jet2holidays have marked a major step on their ongoing expansion with the launch of flights and holidays from Stansted Airport, their ninth UK airport base and the first...

A 'suite' sale from Caesars Entertainment

A 'suite' sale from Caesars Entertainmen…

Monday, 26 September 2016 11:00

For clients seeking the thrill and excitement of Las Vegas, Caesars Entertainment is currently offering its largest ever discount on suite stays.

Collinson Group & Swissport collaborate to launch new T3 lounge at Heathrow

Collinson Group & Swissport collabor…

Monday, 26 September 2016 08:00

Airport Lounge Development (ALD), a subsidiary of Collinson Group, and Swissport are to launch a new lounge at Heathrow Terminal 3 in response to a significant increase in demand for...

Show your adventurous side to find love

Show your adventurous side to find love

Friday, 23 September 2016 13:40

British singletons are more successful in their bid to find love if they use a profile photo that suggests a taste for adventure and travel, according to new data released...

Korean Air and Delta to strengthen codeshare partnership

Korean Air and Delta to strengthen codes…

Friday, 23 September 2016 11:47

Korean Air and Delta Air Lines will strengthen their partnership by expanding codeshares to more than 100 U.S. and Canadian destinations and over 30 cities across Asia.

Great Rail Journeys showcases the Pride of Africa in 2017 tour

Great Rail Journeys showcases the Pride …

Friday, 23 September 2016 08:00

Great Rail Journeys is offering clients the chance to discover the highlights of Namibia and South Africa on its 16-day ‘Namibia & The Pride of Africa’ tour.

2017 Advantage conference registration now open

2017 Advantage conference registration n…

Thursday, 22 September 2016 14:00

The Advantage Travel Partnership has announced the theme of its 2017 Conference, which takes place between May 12-15 at Club Med Opio en Provence in the south of France.

Join in the soap opera on CMV’s cruise

Join in the soap opera on CMV’s cruise

Thursday, 22 September 2016 11:00

Cruise & Maritime Voyages (CMV) has put together an all-star cast of TV soap celebrities for its Canary Islands & Madeira cruise on October 14, including stars from EastEnders, Coronation...

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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