Emirates book now, pay later motivates impulse buying in its app
Mobile might be the perfect platform to encourage impulse purchases. This always-with-you store allows consumers to impulsively pull out their smartphone to shop for a trip while having coffee with friends. Just complete the booking process and select “pay later” and wait until everyone in the group confirms their desire to take the trip. It’s easy to share an itinerary with others and for the application to send a text reminder before the space is canceled at the end of the hold. Perhaps that’s why five airlines (Air France, American, Emirates, Lufthansa, and United) included the feature in their mobile apps.
Emirates is offered as an example because the airline is an unlikely proponent of ancillary revenue. The carrier has traditionally prided itself on an all-inclusive approach to pricing its product. Only within the last year has Emirates raised the profile of its a la carte activity.
After the consumer confirms their itinerary, they are presented the “Hold my fare” option. Provided the booking is made 24 days before departure, the consumer may select a free-of-charge 6-hour hold, or opt to pay a fee for a 72-hour hold. The fee varies, but for a Dubai-Amsterdam booking displayed to the right, the fee was AED 75 (US$20). Clicking on the info button provides more details for the consumer.
Air France offers consumers an exclusive benefit via its app. The Time to Think reservation hold feature is offered free of charge for a 24-hour period. Normally this feature costs US$8-20 for a 3-day period at the website. The airline should better highlight this no-fee benefit as another reason to download and use the mobile app.
This is an excerpt from Ancillary Revenue Goes Mobile: the Best Methods Deployed by the Top 25 Airlines, a report issued by IdeaWorksCompany and sponsored by CarTrawler. Read the full 15-page report:
Executive Educator, Inspiring Leadership and Driving Exceptional Customer Experience for ambitious Enterprises | Founder: Commercial Excellence Partners | Speaker | Travel-Tech ?
7 年Interesting! I know Jet Airways (India) also has a similar feature. Not sure of the details (how long is the hold valid for and charges). Having said that, is there any data around how this has been used, how much revenue gained, and any user feedback around the feature? From our collective industry perspective, this is "innovative", but do customers actually recognise this as valuable?
Future-fwd comms consultant + brand strategist for emerging tech across crypto, blockchain, music, gaming and culture
7 年This is the kind of parallel thinking that we all should take note of! Sometimes you don't need to dismantle the wall. You can create the tool for customers to climb that wall on their own whenever they're ready!