More impact, higher margins — for top retailers, there’s method to their ancillary sales, says Amadeus and IdeaWorksCompany.
US airlines are raking in enormous piles of cash from add-ons and fees, with the leader on a per passenger basis being budget carrier Spirit Airline.
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.
Las Vegas-based Allegiant Air is poised to impose fees on carry-on bags stuffed into overhead bins, all part of what it describes as its “ongoing effort to develop an innovative, new approach to travel.”
Seeking to spur travel agents to use online tools, Carnival Cruise Lines introduced a rewards program for travel agents where they earn points to redeem iPads and gift cards after using various online tools.
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.
Spirit Airlines, which already charges passengers for carry-on bags, will begin charging passengers $5 per person if an airport agent prints their boarding passes.
If there is a scandal, then you can expect Spirit Airlines to try to get some traffic out of it as it has now done with the Anthony Weiner scandal.