Ancillary products boosting airline revenues

Published January 21, 2022, 9:27 AM

by Emmie V. Abadilla

AirAsia Ancillary Products

Earnings from inflight food, baggage allowances and other ancillary products can boost the 2022 revenues of airlines because half of Filipino travelers, five out of ten, purchase them during flight, according to AirAsia Philippines executives.

“Even though flight bookings continue to be our major revenue channel, we also give priority to other offers such as ancillary – and we are glad that our array of products is warmly received by our guests,” explained AirAsia Philippines Chief Executive Officer Ricky Isla.

“What’s great about being a global air travel brand is we get to bring the best practices and products from our international counterparts here in the Philippines,” he noted.

“Expect to have more options – proudly Pinoy included – in our inflight meals and other ancillary offerings this year.”

The most purchased ancillary products are additional baggage allowance and in-flight meals, making these supplementary offers a major additional revenue stream for air carriers this year as the industry gradually recovers from the pandemic.

Some 46 percent of participants in the budget carrier’s recent study bought additional baggage allowance, with 42 percent of them bringing baggage weighing 20 to 25 kilograms (kgs), while 12 percent traveled with heavier loads of 30 to 40kgs.

The next top purchased ancillary product is in-flight meals or snacks, availed by 32 percent while traveling.

The top items getting off of the cart are sandwiches (50 percent) and drinks (50 percent). Other best sellers are rice meals (37 percent).

In addition, Filipino travelers purchase travel insurance (27 percent) and seat assignments (21percent).

To make flying more inclusive, AirAsia Philippines offers promos, not just on flights, but on ancillary products as well.