Dublin Airport speeds up security with Sensor Technology

Dublin Airport speeds up security with Sensor Technology

Monday, 29 August 2016 14:00

The use of...

New river cruise brochure from Shearings

New river cruise brochure from Shearings…

Monday, 29 August 2016 11:00

Shearings Holidays has launched its new 2017 River Cruise programme which showcases its collection of river cruises across Europe including 14 new itineraries and a new design.

Big on adventure with HF Holidays’ Canadian destinations in 2017

Big on adventure with HF Holidays’ Canad…

Monday, 29 August 2016 08:00

HF Holidays is showcasing a selection of 2017 packages that have been introduced in conjunction with the nation-wide celebration of Canada's 150th anniversary as a nation, and include trips to...

ABTA predicts two million Brits to head overseas this weekend

ABTA predicts two million Brits to head …

Friday, 26 August 2016 14:00

ABTA is estimating that two million British holidaymakers are set to head abroad this bank holiday weekend.

Clicky Media research finds video has most impact on potential holidaymakers

Clicky Media research finds video has mo…

Friday, 26 August 2016 11:00

Clicky Media has advised that advances in video technology and the increase in demand for people to see exactly where they are going has the most influence on people’s decision...

‘Live Every Moment’ with Inghams' new winter 2016/17 ski brochure

‘Live Every Moment’ with Inghams' new wi…

Friday, 26 August 2016 08:00

Inghams has launched its new Ski 2016/17 brochure which features two new resorts, Montgenèvre and Courmayeur; new short breaks; two new flight routes; new hotels, plus Muotka Wilderness Lodge in...

In-flight entertainment is the Holy Grail for travel marketers by Guy Bradbury, Atomic London

In-flight entertainment is the Holy Grai…

Thursday, 25 August 2016 14:00

In-flight entertainment is one of the only places left with a totally captive audience - for most travellers, once the seatbelt sign has been switched on there is no access...

Jet2.com bans early morning sale of alcohol

Jet2.com bans early morning sale of alco…

Thursday, 25 August 2016 11:00

Jet2.com has further bolstered its commitment to tackle disruptive and abusive behaviour by banning the sale of alcohol on board before 08:00 on all morning flights.

On the trail of the Great North Snowdogs

On the trail of the Great North Snowdogs

Thursday, 25 August 2016 08:00

Visitors heading to the North East this autumn for the region’s largest free public art trail are being encouraged to extend their stay at a top hotel.

Celebrity Cruises launches new Celebrity Escapes city break packages

Celebrity Cruises launches new Celebrity…

Wednesday, 24 August 2016 14:00

Agents keen to offer holidaymakers the chance to make the most of life at sea without compromising on time spent exploring on land can enjoy the best of both worlds...

New entertainment breaks from Warner Leisure Hotels

New entertainment breaks from Warner Lei…

Wednesday, 24 August 2016 11:00

Warner Leisure Hotels has launched two new midweek entertainment breaks, the ‘Best of British Party’ break which celebrates all things great about the British Isles and the ‘Jet Set Generation’...

Luton extends free Wi-Fi offer

Luton extends free Wi-Fi offer

Wednesday, 24 August 2016 08:00

Passengers flying through Luton Airport (LLA) can now receive up to four hours of free Wi-Fi.

Innsbruck gets guests back to nature with free hiking programme

Innsbruck gets guests back to nature wit…

Tuesday, 23 August 2016 14:00

All visitors to Innsbruck and its 25 holiday villages can take part in the Innsbruck mountain hiking programme.

Golden Eagle journeys to the land of the midnight sun for 2017

Golden Eagle journeys to the land of the…

Tuesday, 23 August 2016 11:00

Golden Eagle Luxury Trains has introduced a new tour travelling deep into the Arctic Circle. Departing on June 15, 2017, the journey takes in remote communities, wildlife and serene forests. 

Free upgrade from Avalon

Free upgrade from Avalon

Tuesday, 23 August 2016 08:00

Avalon Waterways has launched a free upgrade offer worth more than £1,100 per person on all 2017 European river cruises.

Virgin Atlantic introduces sleep aids to help reduce the effects of jet lag

Virgin Atlantic introduces sleep aids to…

Monday, 22 August 2016 14:00

Virgin Atlantic has introduced bespoke aromatherapy on board as part of a new package of relaxation products to help customers get the best sleep.

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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