However, the additional charges being levied for ‘ancillaries’ such as baggage, seat allocation, using a credit card and other unbundled extras are alienating some customers. An article in this weekend’s Mail on Sunday written by

Stephen Wormack complained “Our ‘£2.71’ flight really cost £324”. To a savvy consumer low fares offer the opportunity to snap up a bargain flight, but many other customers are attracted to the low fares but feel stung by the final price.

Those hit hardest by the charges are inevitably families; with more luggage and the need to sit together additional charges can easily top £100. With the ski season kicking off and a clear divide between LCCs, charging up to £22.50 for winter sports equipment, and legacy carriers such as British Airways offering to carry these items for free it will be a further test of just how far customers can be pushed.

With increased coverage in national newspapers LCCs need to be wary of losing the customers that have driven their success. Legacy carriers, again led by British Airways, are using the lack of clarity of just how much a low fare costs to tempt customers into their ‘full service’ seats. In an increasingly hostile market how you offer your product and increase ancillary revenue can affect your competitive edge and customer loyalty.

Chuck Jensen, General Manager for Delta.com stresses that the easyJet and Ryanair way is not the only way. Many airlines are rushing to follow these models when it is not right for them. He goes on to say: “it is important to recognise exactly how ancillary revenue generation fits your market and build a strategy upon this.”

EyeforTravel brings together Ryanair, Delta, Flybe, American Airlines, Virgin Blue and many more at Ancillary Revenue in Travel 2008 to discuss how to market an ancillary revenue strategy to retain customers and maintain profits. Join them on 20-21st February in Dublin.

TravelDailyNews International is the Media Partner of the event. For more information click here http://www.traveldailynews.com/pages/show_page/23533