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Branded fares dominate ancillary revenue for new airlines all over the world

CarTrawler

CarTrawler analysis reviews the ancillary revenue strategies of seven new entrant airlines: Akasa Air, Air Japan, BeOnd, Bonza, Greater Bay Airlines, Jetlines, and Norse Atlantic.

DUBLIN, IRELAND & SHOREWOOD, WISCONSIN-  New entrant airlines provide a unique marketing lesson because they begin with an empty canvas. In theory, start-up teams scan the competitive environment and select features they believe will produce success. Today, new airlines overwhelmingly rely upon branded fares as their primary ancillary revenue method. This is a significant change from ten years ago when these were much rarer. Branded fares provide the best ancillary revenue results and are based upon marketing research which has shown many consumers prefer a “middle choice” rather than opting for the lowest or highest price.

Seven Young Airlines Try Their Ancillary Revenue Wings was issued as a 16-page report. It provides six recommendations for boosting ancillary revenue through the branded fares method. The report describes how each carrier generates ancillary revenue by highlighting their booking path features and unique retail methods:

  • BeOnd (Maldives) offers a top-priced Opulence fare which includes the luxury of lounge access and limousine transfer.
  • Bonza (Australia) only sells tickets through the app; you can’t book a flight at its website.
  • Greater Bay Airlines (Hong Kong) includes no-charge seat assignment for a middle seat in the rear zone of the aircraft for its lowest-price branded fares.Norse Atlantic (Europe) places an impulse item at the end of its booking path (like candy at check-out in a grocery) such as a $9 tapas platter served between meals.

“The rise of branded fares among new entrant airlines highlights a fundamental shift in consumer behaviour & thus a sharp emphasis on enhancing the booking experience.
Branded fares not only drive ancillary revenue but also exemplify strategic marketing’s  influence on consumer decisions. Embracing the ‘middle choice’ philosophy emerges not
just as a strategy, but as a pathway to success in a fiercely competitive landscape.” said Aileen McCormack, CarTrawler‘s Chief Commercial Officer.

 

Airlines-Try-Their-Ancillary-Revenue-Wings
Co-Founder & Chief Editor - TravelDailyNews Media Network | Website | + Posts

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

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