Industry Update
ANCILLARY REVENUE AIR ASIA
CATHAY PACIFIC
Ancillary sales soar
Airline ancillary revenues jumped 43 per cent in 2009 according to a report from consultancy firm IdeaWorks and Amadeus. The report, published in the Amadeus Guide
to Ancillary Revenue, puts 2009 ancillary sales at US$13.5 billion, and shows that airlines are now making millions from goods and services beyond their key ticket sales. The ancillary income has come from a wide
range of additional sources including baggage fees, food sold onboard aircraft, commissions from the sale of hotel nights, car rentals, and travel insurance via airline websites, and partner revenues generated by frequent flyer programmes. Qantas, which ranked fourth in total revenues
this year, upped its ancillary income by 70 per cent between 2008 and 2009. For low cost carriers, such as Tiger Airways and AirAsia, ancillary sales were particularly important and contributed 19.4 per cent and 13.1 per cent respectively of total revenues last year. The report suggests that the ancillary revenue movement is growing as airlines boost sales with additional services and intensified marketing.
www.amadeus.net
AirAsia goes shopping High-tech Cathay leads the way with iPad
Low-cost carrier AirAsia is innovating a new stream of ancillary airline income with the launch of an online shopping portal. The
AirAsiaMegastore.com offers consumers worldwide 24 hour access to an extensive range of branded and affordable products, many of which are sold at lower than retail shelf prices. In addition to buying plane seats and other travel-related services from AirAsia, consumers can also buy a wide array of consumer products. The launch is designed as a quick and easy way
to build income at minimal cost, through the airline’s website, which already attracts millions of visitors each month. The site includes AirAsia-branded merchandise
as well as travel accessories, including the Lonely Planet books, electronic gadgets, designer-wear, fashion accessories, health supplements, shoes and cosmetics. Payments can be made by leading credit cards
and in eight different currencies, including Malaysian ringgit, Indonesian rupiah, Thai baht, British pound, and Australian, Hong Kong, Singapore and US dollars.
www.airasiamegastore.com
Cathay Pacific has launched one of the world’s first customised airline applications for the new Apple iPad. The CX Mobile application for the iPad can be downloaded free of charge from Apple’s iTunes store, offering users access to a wide range of Cathay services and information. Cathay was one of the first international airlines
to offer mobile services to smart phone users through its CX Mobile application launched in April 2009, and this development builds on that success. As well as being able to book their Cathay flights, iPad users now have access to Cathay Pacific services such as online check-in, checking the status of flights, accessing flight schedules and managing their bookings. CX Mobile also links users to Marco Polo Club
for City Guide information and insights on more than 70 destinations worldwide
www.cathaypacific.com
Revenue earning
AirAsia offers low-price online shopping at its ‘Megastore’
Cathay Pacific has its very own iPad app
www.onboardhospitality.com
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