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PhoCusWright’s Ancillary Services Report
PhoCusWright, June 2010, Pages: 32
Ancillary services are here to stay. Airlines are bundling and re-bundling their services in a variety of ways. These 'ancillary services' and 'fare families' have proved to be a successful revenue driver for carriers that were suffering from years of losses. Fees for extra legroom, lounge access, meals, assigned seats and more represent a permanent shift in the airline business model. Ancillary services are redefining the travel distribution landscape as we know it.
Air travel content is no longer just a simple ticket purchase. In 2010, airlines will broaden the range of services and products available for purchase, from on-demand movies to wireless connectivity, including tie-ins with partners such as hotels, car rental companies and ground transportation. Everything but the plane will be for sale, and not just at the time of purchase but up to and during the flight.
Travel intermediaries must adjust to this new merchandising approach. GDSs, travel management companies (TMCs), travel agents (TAs), online travel agencies (OTAs), metasearch companies and airlines themselves will need to pioneer new innovations in air distribution. Every aspect of the trip experience from search and shopping, to booking, to payment and settlement and the trip itself will be impacted.
PhoCusWright's Airline Ancillary Services: Redefining Travel Distribution (or Not) analyzes the impact of ancillary services on the U.S. travel industry. PhoCusWright reviews the effect of these critical changes in air travel distribution on GDSs, TMCs, carriers, technology providers, card providers, OTAs and metasearch companies. The report includes strategies to accommodate ancillary services and fare families and highlights new game changing technologies and innovations.
This new report will:
- Define ancillary services
- Discuss the status of industry efforts
- Highlight the key market drivers and challenges associated with ancillary services
- Focus on challenges and responses by the GDSs
- Explore the implications these changes will have on the roles, business models, technology and processes within the corporate travel market
Air travel distribution as you know it is changing. Make sure your company is on the leading edge of innovation and not left behind.
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