Fierce price competition and ever rising costs are forcing the airlines to look at their business from a broader perspective than just transporting passengers from one place to another. The way to profitability – and even survival – spells Ancillary Revenues, i.e. creative thinking to find new ways to make the Passengers to spend more money before, during, and after the trip.
The key to transformation lies in a careful analysis of passengers’ propensity to spend in different areas, to find out which goods and services, different classes of customers are willing to pay extra for. Such a strategy requires a well-founded price differentiation, combined with efficient administrative processes and an online store integrated with existing booking systems.
Airlines that are successful in their launch of interesting additional services not only improve their profitability, they also become more relevant to their customers, who in turn tend to be more loyal, and spend a larger share of their travel wallet on them.
In-flight advertising is not a new concept, it is another effective source of revenue generation. Personalized spaces or objects such as headrests, trays as well as magazines, tissues, glasses, seat back trays and audio-visual messages will be used for such advertising purposes. In certain cases, the companies’ logos may be displayed on our cabin crew uniforms.
This additional source of revenue means lower fares for customers and for advertisers it can represent an ideal opportunity to reach a highly receptive audience that is literally captive.
The passenger is captive on the plane and there are "limited distraction“, airline passengers are among the greatest consumers in the world. They are focused shoppers with a strong appetite to purchase.
The marketing research on in-flight advertising shows that 85% of long haul passengers recalled some type of in-flight advertising or promotional material. The figures were higher for business class and high frequency passengers, 92% of airline passengers flying in a positive mood, are more likely to be receptive to advertising messages.
While passengers are attempting to pass time on their flight, your product could be presented directly to them as an interactive form of in-flight advertising.