Jay Sorensen, author of the 2011 Amadeus Yearbook of Ancillary Revenue by IdeaWorks, says low base fares and low-fare search “brings out the miser in all of usâ€.
He said Amadeus is trying to counter this by building service-based research into its low-fare search tools.
“This would allow, for example, people looking for a flight on an online travel agency to search for all flights which include checked bags in the ticket, or all flights with extra leg room.
“The idea is to prime users to think about service,†he said.
Amadeus says its ancillary services IT solution (available to airlines using Amadeus Altea) displays services to check-in agents and ensures that passengers keep their ancillary services even if their flight is disrupted.
“Ancillary revenue numbers already look big, but as an industry we are still only at the beginning of understanding how to package and deliver these services to maximize value for airlines and their passengers,†said Amadeus in the Yearbook report.
Sorensen said airlines already engaged in ancillary revenue activities are bringing more products to market.
“First, this occurs through the introduction of new a la carte features and the inclusion of distribution methods beyond the carrier’s website.
“Second, many of these airlines are becoming savvy retailers. Branding has been emphasized, pricing is more sophisticated, and an increasing number of features are presented during the booking process,†he said.
