OUT WITH THE OLD, IN WITH THE NEW (in Airline Ancillary revenue)

Airline earnings reports put ancillary revenue front and center. But at what cost??

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Even before the pandemic, the skies weren’t all that clear and blue for the world’s airlines. In fact, despite a favorable economic environment and low fuel prices, airlines were struggling to turn a profit pre-COVID. A situation that, obviously, was not made better by a nearly 2-year lull in air travel.?

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Anyone who flies regularly has seen the industry’s response: Baggage fees, seat selection, food and beverage, priority boarding, lounge access… the list goes on. Everything costs just a little bit extra. And it’s making a major difference, according to earnings reports.??

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Compared to the fourth quarter of 2019:

-?Spirit Airlines 's non-ticket revenue per segment increased 22.9% to $71.31?

-?Frontier Airlines ?drove U$80 ancillary revenue per passenger for the first quarter of 2023, 15% higher than the 2022 quarter.?

-?VietJet Air ?produced 33% of its revenue from sales of ancillary products and services in Q1?

?The list goes on and on.

THE PROBLEM THEN? Few of these ancillary revenue plays actually add value to the customer experience. In fact, many of them detract from it – adding fees that travelers see as onerous or excessive.??

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But it doesn’t have to be that way. Airlines have a clear and obvious opportunity to drive value while growing ancillary revenue – and it’s the reason people travel in the first place: EXPERIENCES.??

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Experiences is a $250B market with no clear leader (most wel known names in the space only account for 4% of the market!), and 72% of millennials prefer to spend their money on experiences rather than other items, making it a ripe opportunity for existing travel brands looking to drive additional revenue with existing customers.???

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EVEN BETTER WITH?Holibob ! We’re making it easy – bringing together the fragmented global supply that has hampered the effective distribution of Experiences and delivering an Experiences Marketing Platform designed to get the right product in front of the right person at the right time. So no more ineffective white-label sites or poorly timed sales pitches. Just experiences that travelers will love, delivered when and where they are most likely to book.??

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It's not only a new path to ancillary revenues for airlines – but an opportunity to send both customer loyalty and lifetime value soaring.

#travel ?#opportunity ?#airlines ?#customerexperience ?#love ?#ancillaryrevenue ?#experiences ?#whatsnext ?#traveltech ?#traveltechnology ?#future