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The School of Mobile Vol. 2 - The Detail Chapter 3 - Mobile Technology and Solu�ons

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Mobile and ancillary revenue
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How you can use mobile to generate addi�onal revenue streams?
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Ancillary revenue is one of the most exci�ng recent developments that has revolu�onised the
way the travel industry views their travel distribu�on strategy and the way that they generate
addi�onal revenue. Mobile adds a new and exci�ng dimension to this discussion both in terms
of extending exis�ng ways of genera�ng ancillary revenue to mobile and thereby increasing the
revenue generated through those channels and secondly and perhaps more compellingly, mobile
offers the poten�al to generate en�rely new streams of ancillary revenue. This is a key way to think
about mone�sa�on on mobile.
Clearly there is poten�al to generate addi�onal bookings and selling core revenue through mobile
but the results in this area have so far proved somewhat lacklustre and there is certainly no
agreement around the premise that mobile will be the next ‘sales pla�orm’ in travel. Maybe it
will be, but in the interim focus needs to be placed on other avenues of genera�ng revenue from
mobile. Ancillary revenue forms the core of this discussion.
With respect to mobilising ancillary revenue, the picture will look different depending on the type of
player in the industry to which we are referring, but if we keep in mind our individual travel buying
cycles and break it down to reflect the needs of our customers and our par�cular businesses, then
it becomes easier to start seeing the possibili�es.
Best prac�ce in tradi�onal ancillary revenue is just as applicable, if not more so to developing an
ancillary revenue strategy on mobile, to refresh, here are some things to remember:
• It is crucial that ancillary offerings/partners are seamlessly integrated. Make it clunky, intrusive
or awkward to use and it will not be used
• Ensure that ancillary offerings are highly relevant and that they match customer buying cycle
behaviour
• Do not do anything to alienate your customers nor create conflict with the sale of core products
• Use your staff to help you mobilise your ancillary revenue and ensure that you test use cases
and assump�ons about how your mobile customers will behave when confronted with ancillary
revenue offerings
Harnessing the uniqueness of the always-on, context aware mobile phone
The key to making ancillary work for the travel and tourism industry on the mobile is to think about
the unique a�ributes of the mobile device and how your mobile customers will be using it and
when. Personalisa�on, trust-based rela�onships, crea�ng a dialogue, relevancy and convenience
are all crucial a�ributes to keep at the forefront of your mind.
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