Booking and pre-travel phases key to boosting airline ancillary revenues

Daniel Batchelor

Global Head of Corporate Communications, Amadeus IT Group

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A key to accomplishing this takes place during the booking and pre-travel phases of the travel lifecycle. Real-time integration of an airline's full product offering with complimentary providers creates less purchase friction for travellers and providers, enabling greater choice and accuracy and increasing conversion.

Leveraging the global travel ecosystem to enable precise merchandising and retailing while delivering a truly personalised and dynamic shopping experience could unlock more than US$130 billion in additional revenues by 2020 for airlines.

Targeted options for ancillary products at the point of purchase allow travellers to further personalise their experience, including opportunities to bid for cabin upgrades and SMS updates about when friends are travelling – offering the chance to choose seats next to each other. And, as our ‘Thinking Like A Retailer’ report suggests, bidding can increase ancillary revenue by 2% for airlines, while SMS reminders can improve conversion by 2% as well.

Before leaving home, travellers can be alerted, via mobile push notifications, whether bids have been successful. They can also receive new offers from a range of travel providers, such as extra legroom and updating their boarding pass automatically. Travellers will also benefit from a contextual and tailored approach to managing unforeseen changes. Relevant, personalised alerts will be delivered to travellers, covering almost every eventuality and push notifications on mobile also have the added benefit of increasing conversion by 10%.

Check out our infographic for more insights about unlocking additional airline ancillary revenues with personalised merchandising.


Traveler Experience, Merchandising, Research