Airlines will introduce more a la carte fees and other revenue-based methods
IdeaWorks predicts increased reliance upon a “pay for perks” philosophy for customer services
Tuesday, December 02, 2008
There is ample evidence that airline marketing initiatives are becoming more revenue aware. Rather than provide free amenities, airlines have learned to “ask for the sale” at every opportunity. A la carte fees are quickly becoming associated with checked baggage, call centre support, and onboard meals. Frequent flier programs are charging more fees and the beloved “mile” is slowly being marginalized by accrual methods tied to ticket prices.
IdeaWorks applied its ancillary revenue expertise, and its contact with airline clients worldwide, to anticipate the growing effect these changes will have on the air travel experience:
- Major carriers in the United States will introduce more a la carte fees to broaden the revenue success of checked baggage fees.
- Baggage fees will spread to international markets, to include the transatlantic, as more airlines become comfortable with the change.
- Food-for-purchase programs will gain acceptance on longer haul flights, but will begin as offers to upgrade the dining experience.
- Mileage-based frequent flier accrual will slowly be replaced by points tied to the fare paid by the passenger.
- Likewise, mileage-based rewards will be replaced by market-priced rewards that allow members to spend point balances to buy reward travel.
Vicky Karantzavelou
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Tuesday, December 02, 2008
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