Types
A la carte features are separate amenities a consumer can order while travelling. The list continues to grow and the following lists typical activities: 1) onboard sales of food and beverages, 2) checking of baggage and excess baggage, 3) assigned seats or better seats such as aisle seats, 4) call center support for reservations, 5) fees charged for purchases made with credit cards, and 6) early boarding benefits.
Commission-based products refers to sales of products and services such as hotel accommodations, car rentals and travel insurance for sales commission. These primarily involves the airline’s web site, but it can include the sale of duty-free and consumer products on board aircraft.
Frequent flyer programs are defined by the sale of miles or points to program partners such as hotel chains and car rental companies, co-branded credit cards (co-branding), online malls, retailers, and communication services.
Airline-sold Advertising relates to revenue from the sale of advertising in in-flight magazines and other customer communication channels (including advertising on the aircraft interior or exterior, or in airport or lounge facilities, as well as advertising on airlines' in-flight entertainment service.
Industry agreement largely exists that à la carte features and commission-based products should be counted under the "ancillary revenue" banner for accounting and reporting purposes. The inclusion of frequent flyer partnership activities is growing in acceptance.
Read more about this topic: Ancillary Revenue
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