Branded Fares Dominate Ancillary Revenue for New Airlines All Over the World

CarTrawler analysis reviews the ancillary revenue strategies of seven new entrant airlines:  Akasa Air, Air Japan, BeOnd, Bonza, Greater Bay Airlines, Jetlines, and Norse Atlantic.

Dublin, Ireland & Shorewood, Wisconsin, 19 March 2024:  New entrant airlines provide a unique marketing lesson because they begin with an empty canvas.  In theory, start-up teams scan the competitive environment and select features they believe will produce success.  Today, new airlines overwhelmingly rely upon branded fares as their primary ancillary revenue method.  This is a significant change from ten years ago when these were much rarer.  Branded fares provide the best ancillary revenue results and are based upon marketing research which has shown many consumers prefer a “middle choice” rather than opting for the lowest or highest price. 

Seven Young Airlines Try Their Ancillary Revenue Wings was issued today as a 16-page report.  It provides six recommendations for boosting ancillary revenue through the branded fares method.  The report describes how each carrier generates ancillary revenue by highlighting their booking path features and unique retail methods:

• BeOnd (Maldives) offers a top-priced Opulence fare which includes the luxury of lounge access and limousine transfer.
• Bonza (Australia) only sells tickets through the app; you can’t book a flight at its website.
• Greater Bay Airlines (Hong Kong) includes no-charge seat assignment for a middle seat in the rear zone of the aircraft for its lowest-price branded fares.
• Norse Atlantic (Europe) places an impulse item at the end of its booking path (like candy at check-out in a grocery) such as a $9 tapas platter served between meals.