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An analysis of ongoing trends in airline ancillary revenues


  • Warnock-Smith, David
  • O'Connell, John F.
  • Maleki, Mahnaz


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).

Suggested Citation

  • Warnock-Smith, David & O'Connell, John F. & Maleki, Mahnaz, 2017. "An analysis of ongoing trends in airline ancillary revenues," Journal of Air Transport Management, Elsevier, vol. 64(PA), pages 42-54.
  • Handle: RePEc:eee:jaitra:v:64:y:2017:i:pa:p:42-54
    DOI: 10.1016/j.jairtraman.2017.06.023

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    References listed on IDEAS

    1. O'Connell, John F. & Warnock-Smith, David, 2013. "An investigation into traveler preferences and acceptance levels of airline ancillary revenues," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 12-21.
    2. Blaise Waguespack & Tamilla Curtis, 2015. "Ancillary revenue and price fairness: an exploratory study pre and post flight," International Journal of Aviation Management, Inderscience Enterprises Ltd, vol. 2(3/4), pages 208-225.
    3. Scotti, Davide & Dresner, Martin & Martini, Gianmaria, 2016. "Baggage fees, operational performance and customer satisfaction in the US air transport industry," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 139-146.
    4. repec:eee:joreco:v:21:y:2014:i:2:p:98-107 is not listed on IDEAS
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