‘Next-gen ancillaries could save airlines from post-summer plunge’
With inflation squeezing customers and airlines scrambling to fill seats, industry giants like Ryanair and Cathay Pacific are sounding the alarm: yields are likely to soften at the end of the summer.
But according to InterLnkd – the travel industry’s “intelligent shopping partner” – savvy airlines are already ahead of the curve, embracing innovative concepts to diversify their ancillary revenue streams.
“The post-Covid rush to rebuild networks and capitalise on ‘revenge travel’ is bound to have repercussions for airlines,” said Barry Klipp, CEO of InterLnkd. “Combine this with weaker currencies, looming debt repayments and the ongoing cost of living crisis in major markets, and we have a perfect storm. The industry needs to explore new revenue streams to cushion the headwinds.
“In the post-pandemic years, airlines have rightfully prioritised their operations,” he added. “But that’s left money on the table. When it comes to ancillary strategies, many haven’t moved past the basics of seat selection and baggage fees.
“For low-cost carriers, now is the time to venture beyond core travel add-ons such as car hire and e-SIMs to further improve their bottom line. Meanwhile, full-service airlines can implement next-gen ancillaries to tap into their customers’ lifestyle and, ultimately, build loyalty.
“We’re now seeing a surge of interest from airlines wanting to earn revenue from the products their travellers want and need for their holidays. Now is the time to look beyond the usual add-ons and harness the untapped potential in ancillary revenue streams.”
