5 ways to unleash ancillary revenues for airlines, while leveraging the brand - Presentation Transcript
Airlines 2.0
5 Ways to unleash the poten/al of
ancillary revenues in a downturn
About the Speaker
• Founder & CEO, SimpliFlying
• Authority in airline branding
• Columnist - Interbrand’s BrandChannel
• Co-author of two books on branding
The potential of ancillary revenues...
The potential of ancillary revenues...
Let the numbers
do the talking
£221m
£221m
What Ryanair earned from ancillary revenues
£3.81
£3.81
What EasyJet earns per seat, from ancillary sources
%
7
7
%
7
es
u
en
ev
7
r
ry
la
il
c
n
a
’s
ia
s
rA
i
A
in
e
is
R
3%
3%
of airline managers believe that ancillary
revenues are the future...
Q: Do managers know how to make ancillary
revenues work for the brand?
A: Probably not!
“I feel nickel and dimed”
“being treated like cargo!”
“Charging for water is a
human rights violation”
Most commented article on SimpliFlying! (71 comments)
Ancillary revenues need to be in sync with
brand strategy to work in the long term
5
5
ways to unleash the
power of ancillary
revenues in a downturn
1 Personalize the charge ‐ know your
customer and offer something relevant
Why have the same offers for all your customers?
Pepper spray for
young women?
Pepper spray for
young women?
Wheel‐chair for the
old folks?
Nametags for
unaccompanied
minors?
Pepper spray for
young women?
Wheel‐chair for the
old folks?
2 Reverse‐bundling, the more appealing
way to charge in a downturn
How about opting out, instead of opting in?
Choosing ahead: Airline bene]its too, isn’t it?
3 Cultivate winning partnerships
Singapore Airlines boarding pass privileges
Anyone for a casino using your miles?
How about selling magic tricks on‐board?
4 Use social media do drive in]luence and
sales, even if indirectly
Pamper the in]luencers. The Ford Fiesta story
Tweet! Tweet! $! $!
Go where the customer is!
5 Always keep the brand in mind, for long
term ancillary gains
Your airline
need not do
everything
Ryanair does!
In conclusion...
Ancillary revenues may look
like easy money...
Ancillary revenues may look
like easy money...
but getting them right,
and in‐sync with brand
strategy takes work.
It’s not the strongest of the species that
survives, nor the most intelligent. It is the
one that is most adaptable to change.
Charles Darwin
Questions
Shashank Nigam
shashank@simpliflying.com
Jeff Ogden
jefflogden@gmail.com
These were slides first presented by Shashank Nigam more
These were slides first presented by Shashank Nigam for the ancillary revenues and airline branding webinar, conducted by SimpliFlying.com.
Learn how you can:
* Make un-bundling work to suit your customers' lifestyles * Entice customers through "reverse-bundling" in the recession * Maximize existing revenue channels, without compromising the brand * Cultivate new revenue channels using Web 2.0 tools, like Facebook, Twitter and blogs * Increase conversion rates for ancillary channels * Keep the brand intact while earning more per customer
The webinar includes eye-opening case studies from leading airlines like RyanAir, AllegiantAir, AirAsia, Virgin Blue, JetBlue, Southwest and Singapore Airlines. less
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