IDEAS home Printed from https://ideas.repec.org/a/exp/mkting/v5y2017i2p53-65.html
   My bibliography  Save this article

Ancillaries in the Aviation Industry. Importance, Trends, Going Digital

Author

Listed:
  • Bogdan AVRAM

    (Lucian Blaga University of Sibiu)

Abstract

In 2016, the global airline industry reached almost 70 billion dollars in ancillaries (up from 60 billion dollars in 2015), while the ancillary revenues on a global scale reached a 10% share of overall airline revenue, according to Ideaworks, a consulting firm that measures airline ancillary revenues. This research aims to investigate how airline companies use ancillaries in their favour to add value and revenue sources to the booking engine, offer flexibility to their passengers, increase revenues and customer satisfaction, interact with passengers at all touch points to create commercial opportunities and differentiate their brand.

Suggested Citation

  • Bogdan AVRAM, 2017. "Ancillaries in the Aviation Industry. Importance, Trends, Going Digital," Expert Journal of Marketing, Sprint Investify, vol. 5(2), pages 53-65.
    • Handle: RePEc:exp:mkting:v:5:y:2017:i:2:p:53-65
    as

    Download full text from publisher

    File URL: http://marketing.expertjournals.com/ark:/16759/EJM_507avram53-65.pdf
    Download Restriction: no
    File URL: http://marketing.expertjournals.com/23446773-507
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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. Wittmer, Andreas & Rowley, Edward, 2014. "Customer value of purchasable supplementary services: The case of a European full network carrier's economy class," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 17-23.
    3. Leon, Steven & Uddin, Nizam, 2017. "Airline Ancillary Services: An Investigation into Passenger Purchase Behavior," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 56(1), April.
    4. Martín, Juan Carlos & Román, Concepción & Espino, Raquel, 2011. "Evaluating frequent flyer programs from the air passengers' perspective," Journal of Air Transport Management, Elsevier, vol. 17(6), pages 364-368.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiang, Yirui & Tran, Trung Hieu & Williams, Leon, 2023. "Machine learning and mixed reality for smart aviation: Applications and challenges," Journal of Air Transport Management, Elsevier, vol. 111(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chiambaretto, Paul, 2021. "Air passengers’ willingness to pay for ancillary services on long-haul flights," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    2. Button, Kenneth, 2019. "Applied economics and understanding trends in air transportation policy," Transport Policy, Elsevier, vol. 80(C), pages 78-85.
    3. Rouncivell, Adam & Timmis, Andrew J. & Ison, Stephen G., 2018. "Willingness to pay for preferred seat selection on UK domestic flights," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 57-61.
    4. Song, Woon-Kyung & Lee, Hyun Cheol, 2020. "An analysis of traveler need for and willingness to purchase airline dynamic packaging: A Korean case study," Journal of Air Transport Management, Elsevier, vol. 82(C).
    5. Ren, Xinhui & Pan, Na & Jiang, Hong, 2022. "Differentiated pricing for airline ancillary services considering passenger choice behavior heterogeneity and willingness to pay," Transport Policy, Elsevier, vol. 126(C), pages 292-305.
    6. O'Connell, John F. & Avellana, Raquel Martinez & Warnock-Smith, David & Efthymiou, Marina, 2020. "Evaluating drivers of profitability for airlines in Latin America: A case study of Copa Airlines," Journal of Air Transport Management, Elsevier, vol. 84(C).
    7. Zhao, Guihong & Cui, Yue & Cheng, Shaoyu, 2021. "Dynamic pricing of ancillary services based on passenger choice behavior," Journal of Air Transport Management, Elsevier, vol. 94(C).
    8. Ko, Young Dae & Kwag, Sung Il & Oh, Yonghui, 2020. "An efficient airline seat reallocation algorithm considering customer dissatisfaction," Journal of Air Transport Management, Elsevier, vol. 85(C).
    9. Wang, Stephen W. & Hsu, Maxwell K., 2016. "Airline co-branded credit cards—An application of the theory of planned behavior," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 245-254.
    10. Paul Chiambaretto, 2021. "Air passengers’ willingness to pay for ancillary services on long-haul flights," Post-Print hal-03514785, HAL.
    11. Seelhorst, Michael & Liu, Yi, 2015. "Latent air travel preferences: Understanding the role of frequent flyer programs on itinerary choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 49-61.
    12. Onur Bas & Tamer Aksoy, 2022. "Examining the impact of cargo and ancillary revenues on net profit for full service carrier airlines," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 4(3), pages 48-72, July.
    13. Pardo González, Germán & Tabares Pozos, Alejandra & Quiroga, Camilo & à lvarez-Martínez, David, 2024. "Seat assignment recommendation in airlines purchase flow to increase ancillary revenue considering weight and balance constraints," Journal of Air Transport Management, Elsevier, vol. 117(C).
    14. Untung Rahardja & Tanaporn Hongsuchon & Taqwa Hariguna & Athapol Ruangkanjanases, 2021. "Understanding Impact Sustainable Intention of S-Commerce Activities: The Role of Customer Experiences, Perceived Value, and Mediation of Relationship Quality," Sustainability, MDPI, vol. 13(20), pages 1-20, October.
    15. Zijlstra, Toon, 2020. "A border effect in airport choice: Evidence from Western Europe," Journal of Air Transport Management, Elsevier, vol. 88(C).
    16. Renold, Manuel & Vollenweider, Janik & Mijović, Nemanja & Kuljanin, Jovana & Kalić, Milica, 2023. "Methodological framework for a deeper understanding of airline profit cycles in the context of disruptive exogenous impacts," Journal of Air Transport Management, Elsevier, vol. 106(C).
    17. Stacey Mumbower & Susan Hotle & Laurie A. Garrow, 2023. "Highly debated but still unbundled: The evolution of U.S. airline ancillary products and pricing strategies," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(4), pages 276-293, August.
    18. 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.
    19. Kim, Yukyoung, 2015. "Assessing the effects of perceived value (utilitarian and hedonic) in LCCs and FSCs: Evidence from South Korea," Journal of Air Transport Management, Elsevier, vol. 49(C), pages 17-22.
    20. Shaw, Mark & Tiernan, Siobhan & O'Connell, John F. & Warnock-Smith, David & Efthymiou, Marina, 2021. "Third party ancillary revenues in the airline sector: An exploratory study," Journal of Air Transport Management, Elsevier, vol. 90(C).

    More about this item

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:exp:mkting:v:5:y:2017:i:2:p:53-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alin Opreana (email available below). General contact details of provider: https://marketing.expertjournals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.