According to a report by IdeaWorksCompany, airline ancillary revenue has been on a steady climb since 2007. In 2017, airline ancillary revenue was projected to be worth approximately $82.2 billion on a global basis.
What started out as a revenue boost for airlines to drive profits during difficult times has become a core component of a carrier’s fiscal health. It is also something that is expected of airline management teams by investors nowadays. But it is more than just sales for wider leg-room and extra baggages.
If ancillary revenue plays such an important role, why isn’t your customer’s in-destination spend your main revenue yet?
There’s enough pie for everyone — especially for airlines
Many airlines are still not grasping the opportunities to monetize their customer’s in-destination spend, even when they have resources such as data on what the passenger is looking for, where and why they are going.
Only 30% of total revenue in the travel ecosystem goes to airlines despite their ability to bring passengers and a lot of revenue into the ecosystem.
The primary need of an airline customer is organizing a trip which is extremely time-consuming. There are things such as accommodation and transportation that need to be taken care of as well as tours and activities that can be included into the trip.
Your customers are most likely browsing for options to add to their trip when they are not booking flights for it. Most of the time, these information are available on external sites.
They are likely to end up with more than a dozen tabs opened, with information that are scattered all over the place. When a customer leaves your site, chances of them returning within the day to make a booking lower significantly.
The remedy to keeping them engaged is to give them what they need — convenience.
Let technology do its work
You can turn your customer’s in-destination spend into your main revenue by making your site a one-stop-shop that provides enough information, and automates booking processes to remove this major pain point for your customer.
The less work for them, the better.
Monetizing in-destination spend can come from a place that focuses on adding value throughout your customer’s full travel cycle — from showing interest to booking flights, to traveling and post-travel. For example, cross-selling hotel stay and transportation as well as tours and activities so that your customer won’t have to leave the site to search for them.
But that doesn’t mean taking on more work for yourself. It just means engaging the help of technology.
According to Tim Clark, President of Emirates, technology is the bedrock of being able to do a lot more for customers. The barrier lies in airlines understanding how these different pieces of technology come together to streamline processes that can lead to better customer engagement.
A good airline customer experience is not just about the comfort while traveling. It is built on the experience they gain from the services they pay for throughout the entire process leading up to a trip and post-travel.
TripCreator leverages technology to help you monetize your customer’s in-destination spend. It is a one-stop solution designed to meet specific needs of airlines.
Come visit us at booth 61 at the Aviation Festival London 2018. We’ll have a lot more to talk about!