A guest article by Jay Sorensen of IdeaWorksCompany on how branded fares are generating profits for airlines. Frontier Airlines attributes a 22% revenue increase to the branded fare approach.
Tnooz-Datalex Webinar VIDEO â€“ Traveller experience: bridging divide between merchandising and loyalty
Marrying merchandising and customer loyalty – arguably the holy grail of the modern airline. But how can they do it effectively and where does it head next?
More impact, higher margins — for top retailers, there’s method to their ancillary sales, says Amadeus and IdeaWorksCompany.
Tnooz-Datalex FREE Webinar â€“ Traveller experience: bridging divide between merchandising and loyalty
Airline merchandising and loyalty share a common objective to maximize profitability by delivering the desired branded traveller engagement and experience.
Airlines raked in ancillary revenues of at least $22.6 billion in 2011, says the latest joint study by Amadeus, a global distribution system, and IdeaWorks, a research firm. US airlines led the world by generating about 11 percent of their income from ancillary revenue.
Confession: when looking for a suitable title for a new report, I deliberately chose “shocking” to attract attention to the topic.
GRS – that’s the new acronym being adopted to describe global distribution systems and their evolution – admittedly by the GDS themselves.
It has come to this for airlines: To succeed carriers should consider following Spirit Airlines’ lead and compete on price alone, charge fees for overhead bin space and other amenties, avoid weak-kneed customer service, etc.
Travel agents could boost airline ancillary revenue threefold via technology being integrated by the global distribution systems and other airline system suppliers