Ancillary revenue is important to the health of an airline. With margins on most tickets hovering around $4, even adding an extra $.50 to each sale can make a big difference.
One major international airline sought to increase ancillary revenue from travelers heading to the US in a way that would enhance the customer experience. That meant looking beyond existing sources of ancillary revenue.
“It was important that the airline maintain their customer-centric philosophy,” says a representative of the loyalty marketing firm tasked by the airline to explore ancillary revenue options.
The loyalty marketing firm tapped Access Development to create a private-labeled instance of Access’ All City Savings product.
With a coupon network of over 150,000 merchant locations, All City Savings offers deals of up to 50% off at restaurants, retailers, attractions and more in every major US destination. The deals are packaged together by location and sold in-path or post-path through a turnkey solution.
Sold at a minimum of $10 per package, All City Savings makes for an attractive option for travelers looking to explore their destination on a budget. For the airline, implementing All City Savings offered the opportunity to add significant revenue to every booking, in some cases doubling the profit margin when a customer opted in to purchase.
Since launching in 2014, the airline’s All City Savings bookings have added over $6 in extra revenue to each completed purchase, and sales continue to accelerate.
Meanwhile, the travelers who have purchased the discount packages have recouped significant amounts of their travel costs by saving hundreds at popular merchants in their destination cities.
“Ancillary revenue is important, but the service being offered has to be beneficial and relevant to the customer,” the representative says. “The All City Savings program presents destination-specific savings that excite travelers, while adding extra revenue to each trip booked.”