20 April 2010 | According to ancillary revenues specialist Collinson Latitude the first wave of ancillary revenue was focused on unbundling, but today’s air traveler is getting lots of confusing messages, so repackaging will make ticket fares simpler again. Collinson Latitude sees 3 phases in the development of ancillary fees (full presentation here): The first ‘product unbundling’ phase is about introducing fees for services such as ticket booking, baggage check-in, and seat selection. In the second ‘product enhancement’ phase passengers can purchase paid extras such as priority security, lounge access and inflight Internet. The third stage is a ‘repackage / rebundle’ phase in which airlines rebundle paid services in packages.
Network carriers such as United and Air New Zealand (ANZ) are among the first airlines to introduce bundled fares. For example, United Airlines’ ‘Premier Line’ travel option combines checked luggage, airport fast-track and extra legroom. ANZ recently introduced new bundled fares on its short-haul routes that range from seat-only to the full works.
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