You need to increase your ancillary revenue but are running out of ideas? You’ve optimized your sales of bags, seats, priority boarding, rental cars, hotels, insurance, onboard products and are looking for the next idea? Fairlyne has the answer for you.
Let’s first explore some compelling data:
- According to Jay Sorensen, airline ancillary revenue experienced a staggering 56% surge, reaching a remarkable $102.8 billion in 2022 (IdeasWork and CartTrawler, press release, 2023).
- A number of Low-Cost Carriers (LCCs) have achieved remarkable success by capitalizing on ancillaries. The 2022 CarTrawler Yearbook of Ancillary Revenue reveals some notable examples: In 2021, Wizz Air generated a remarkable 56% of its total revenue from ancillaries. Frontier, 54.9% (2021). Spirit Airlines, 54.3% (2021). Allegiant, 51.3% (2021)
- 45% of consumers willingly choose to enhance their travel experience by adding additional services such as checked baggage, large carry-on bags, advance seat assignments, priority boarding, food and beverages, and Wi-Fi access (IdeasWork and CartTrawler, press release, 2023).
By implementing Fairlyne, airlines can optimize their ancillary sales and achieve remarkable results.
Here’s how:
- Increased Ticket Sales, Increased Ancillaries: Fairlyne’s riskless approach to overbooking results in more ticket sales for the same flight, thereby creating more opportunities for ancillary revenue generation. As the same seat is sold twice, your ancillary sales per flown passenger will greatly increase.
- Higher Price Tickets, Higher Ancillaries: The Fairlyne approach results in you not only ensuring that you won’t have empty seats on board, but it effectively swaps high fare late market fares for cheap early market fares. This is also great news as customers who are willing to pay for high fares in the late market are often also willing to spend more on ancillary.
- Harnessing breakage: the Fairlyne approach involves providing vouchers to no-show customers on flights where they have been able to resell their tickets. Although the data largely varies by airline, significant breakage occur as customers simply let their vouchers expire.
In conclusion, Fairlyne’s innovative Resale process stands out as a powerful tool that can significantly boost ancillary revenue. By leveraging Fairlyne’s capabilities, airlines can tap into the untapped potential of no-shows and convert them into incremental flight and ancillary purchases. This presents an unique opportunity for airlines to maximize their revenue streams and further enhance the customer experience.
In this ever-evolving industry, embracing solutions like Fairlyne will position airlines for long-term success.
