Revenue from non-ticket sources or ancillary revenue is critical for airlines in the current environment. With booking volumes through travel agencies predicted to decline by 2021, it is even more important for airlines to maximize their ancillary revenue through this channel. The launch of New Distribution Capability (NDC) thus comes as a boon for airlines as it will improve communication between airlines, travel agents and travelers. This increases the opportunity for airlines to sell their ancillary products and services, and enhances the scope for personalization as well. It thus improves their chances of capturing a large portion of the predicted USD 130 Billion ancillary revenue market by 2020.
Analytics will play a major role in helping airlines glean valuable insights on customers' purchase and spend patterns on ancillary products and services by leveraging the data extracted from bookings made directly from airline websites. Airlines can accordingly push customized ancillary products and services when a search is made through travel agents.
In order to customize ancillary products, airlines could take a page out of other service industries’ playbooks and adopt innovative strategies to gauge customer behavior and needs. This will allow them to personalize the experiences they offer.
This WNS DecisionPointTM report outlines the following strategies for airlines to generate more revenue from ancillary products and services:
Comprehend Your Customer Framework to evaluate the underlying behavior patterns of customers to generate offers
Ancillary Revenue Maximization Matrix to segment customers based on their likely future behavior and offer ‘preference-based’ ancillary products
For a closer look at how to maximize ancillary revenue, read the full report at: