ANCILLARY REVENUE

Evaluating whether or not ancillary revenue is for you is not simply about an extra source of revenue it is a fundamental refresh of your business model. Ancillary revenue is not just web real estate or onboard sales, it is rethinking the entire approach to your business - turning cost centres into profit zones, sharing risk with partners, developing a lasting relationship with core customers and turning employees into energised sales people.

What’s it worth? Leading LCCs (Low Cost Carriers) Allegiant and Ryanair demonstrate how 20-30% of revenue (2009 figures) – often the difference between profit and loss - can be generated through unbundling and dynamic packaging.

Why should you do it? Full Service Carriers have made huge strides to unlock previously hidden customer value. American, United and Delta all recently posted over $1bn in ancillary revenue in mature consumer driven markets and their example is being followed by airlines that have responded to the cost pressures created by fuel price prises and immunised ventures on the one hand and the revenue shortfall arising from more selective premium travel and tougher corporate deals on the other.

HOW WE CAN HELP

Because we have designed ancillary revenue businesses for airlines in new market spaces, implemented these businesses in LCCs and worked with airlines and airports to evaluate, size and implement these opportunities we can manage the process for you or support and coach your team through it. There are a wide range of ancillary revenue streams to choose from today: Athena can help you work out which of these will bring in the money and enhance your customer proposition, and separate these from the decisions that will damage your business.

For more information, please contact Sudeep Ghai.