An analysis of ongoing trends in airline ancillary revenues

Warnock-Smith, David, O'Connell, John F. and Maleki, Mahnaz (2017) An analysis of ongoing trends in airline ancillary revenues. Journal of Air Transport Management, 64 (A). pp. 42-54. ISSN 09696997

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This paper examines the performance of the two core classifications of airline ancillary revenues, which are unbundled products and commission based income. It also investigates the willingness of passengers to pay (WTP) for these services together with what type of ancillary items are acceptable at a particular price point. The study found that passengers value a narrow range of perceived ‘necessity’ products and services such as food and drink, checked baggage and seat assignment as opposed to perceived ‘optional’ unbundled or commission based products/services. It also found significant differences in WTP for specific ancillary services based on carrier type (FSC/LCC/Charter), length of flight (long and short haul) and journey purpose (business, leisure, VFR).

Item Type: Article
Keywords: Ancillary revenue, Unbundled products, Commission based income
Depositing User: RED Unit Admin
Date Deposited: 17 May 2018 15:15
Last Modified: 14 Sep 2020 12:16

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