upselling Ancillaries
in Airline Apps
State-owned vs. private carriers 1q19
Ancillaries - or unbundling of services - is increasingly an important aspect of airlines' sales strategy and revenue growth. Industry research pegs ancillary sales contribution of airlines revenue at 12% and growing fiercely year-over-year. Moreover, airlines are working towards streamlining their ancillary displays and sales via the protocols set under IATA's New Distribution Capability (NDC) videc's App in the Sky examines the inclusion of ancillary products in Android mobile app shopping flow of privately-held and government-run airlines.

Overall, it is an intense battle between the privately-held airlines and government carriers in supporting mobile ancillary sales. For most part, private airlines lead government carriers, but the difference between the share of airlines within respective category is marginal.

Paid Seat Selection
Upselling preferred seat selection is the most pervasive ancillary offering across airlines' Android mobile apps. Six out of ten airline apps across both - government and privately-held airlines sell seats for an additional price during the purchase cycle.
59%
Private Airlines
61%
Government Operated Airlines
Airline Apps That Do Not Offer Paid Seat Selection
Additional Baggage Purchase
Baggage sales rank second among the ancillary products airlines sell via their mobile apps. Overall, one in two airline Android apps of government and privately-held airlines upsell baggage sales in the shopping funnel.
51%
Private Airlines
53%
Government Operated Airlines
Airline Apps That Offer Baggage Purchase
Insurance Purchase
Flight disruption is a significant threat to airline operations and expense line - particularly in western markets which have stringent airline passenger rights. Yet, offering travelers the safety and comfort by upselling travel insurance places airlines in a more positive light. Nearly one in two privately-held airlines offer travel insurance in the mobile purchase path, while only one in four government-airline apps support this.
45%
Private Airlines
24%
Government Operated Airlines
Airline Apps That Offer Travel Insurance
Additional Meals Purchase
Airlines have done rather little in upselling meals via their Android apps. Two in five government airline apps offered F&B purchase in the shopping path, tipping over private airlines (37%). Arguably, a tiny share of traditional carriers unbundle meals; but it is no secret that F&B often serves high margins to the benefit of its seller.
37%
Private Airlines
41%
Government Operated Airlines
Airline Apps That Offer Meals
Priority Check-In
Late to arrive. First to board. First to deplane. That's the mantra of frequent fliers. So if priority is what the travelers seek, airlines are rolling up their sleeves to deliver this experience as an upsell. Still, less than one in three airlines across respective categories upsell priority service in their apps.
31%
Private Airlines
29%
Government Operated Airlines
Airline Apps That Offer Priority Check-In
Duty Free/Shopping
Capitalizing on the ecosystem surrounding the air passenger experience is a strong interest area for airlines. To that effect, airlines are either retailing onboard or tying up with partners at the airports they serve. Taking this a step further, some airlines are incorporating retail shopping within their apps. The retail opportunity is vast and those doing it right, stand a chance to be part of their travelers' lifestyle.
6%
Private Airlines
12%
Government Operated Airlines
Airline Apps That Offer Duty Free/Shopping
Wi-Fi Purchase
Yet another emerging ancillary product, Wi-Fi passes haven't reached mainstream due to a combination of factors. Chief among them are - massive capital expenditure on part the airline, varying telecom regulations by country in case of overseas flights.
4%
Private Airlines
Airline Apps That Offer Wi-Fi
videc's App in the Sky is an infographic series based on our analysis of 66 airline Android-based apps.videc conducted the research in March 2019 to identify and assess flight shopping and booking functionalities, ancillary products, services, travel management tools, etc. integrated within the airline Android apps.The airline apps were evaluated on 37 unique aspects/components across various stages of app launch, flight search, booking, travel management, loyalty/customer logins, products sold, payment methods and customer support. video shall not be held responsible for any loss - tangible or intangible, due to the inclusion (or not) of the analysis in videc's App in the Sky.
upselling Ancillaries
in Airline apps
State-owned vs.
private carriers 1q19
Ancillaries - or unbundling of services - is increasingly an important aspect of airlines' sales strategy and revenue growth. Industry research pegs ancillary sales contribution of airlines revenue at 12% and growing fiercely year-over-year. Moreover, airlines are working towards streamlining their ancillary displays and sales via the protocols set under IATA's New Distribution Capability (NDC). videc's App in the Sky examines the inclusion of ancillary products in Android mobile app shopping flow of privately-held and government-run airlines.

Overall, it is an intense battle between the privately-held airlines and government carriers in supporting mobile ancillary sales. For most part, private airlines lead government carriers, but the difference between the share of airlines within respective category is marginal.
Paid Seat Selection
Upselling preferred seat selection is the most pervasive ancillary offering across airlines' Android mobile apps. Six out of ten airline apps across both - government and privately-held airlines sell seats for an additional price during the purchase cycle.
59%
Private Airlines
61%
Government Operated Airlines
Airline Apps That Do Not Offer Paid Seat Selection
Additional Baggage
Purchase
Baggage sales rank second among the ancillary products airlines sell via their mobile apps. Overall, one in two airline Android apps of government and privately-held airlines upsell baggage sales in the shopping funnel.
51%
Private Airlines
53%
Government Operated Airlines
Airline Apps That Offer Baggage Purchase
Insurance Purchase
Flight disruption is a significant threat to airline operations and expense line - particularly in western markets which have stringent airline passenger rights. Yet, offering travelers the safety and comfort by upselling travel insurance places airlines in a more positive light. Nearly one in two privately-held airlines offer travel insurance in the mobile purchase path, while only one in four government-airline apps support this.
45%
Private Airlines
24%
Government Operated Airlines
Airline Apps That Offer Travel Insurance
Additional Meals Purchase
Airlines have done rather little in upselling meals via their Android apps. Two in five government airline apps offered F&B purchase in the shopping path, tipping over private airlines (37%). Arguably, a tiny share of traditional carriers unbundle meals; but it is no secret that F&B often serves high margins to the benefit of its seller.
37%
Private Airlines
41%
Government Operated Airlines
Airline Apps That Offer Meals
Priority Check-In
Late to arrive. First to board. First to deplane. That's the mantra of frequent fliers. So if priority is what the travelers seek, airlines are rolling up their sleeves to deliver this experience as an upsell. Still, less than one in three airlines across respective categories upsell priority service in their apps.
31%
Private Airlines
29%
Government Operated Airlines
Airline Apps That Offer Priority Check-In
Duty Free/Shopping
Capitalizing on the ecosystem surrounding the air passenger experience is a strong interest area for airlines. To that effect, airlines are either retailing onboard or tying up with partners at the airports they serve. Taking this a step further, some airlines are incorporating retail shopping within their apps. The retail opportunity is vast and those doing it right, stand a chance to be part of their travelers' lifestyle.
6%
Private Airlines
12%
Government Operated Airlines
Airline Apps That Offer Duty Free/Shopping
Wi-Fi Purchase
Yet another emerging ancillary product, Wi-Fi passes haven't reached mainstream due to a combination of factors. Chief among them are - massive capital expenditure on part the airline, varying telecom regulations by country in case of overseas flights.
4%
Private Airlines
Airline Apps That Offer Wi-Fi
videc's App in the Sky is an infographic series based on our analysis of 66 airline Android-based apps. videc conducted the research in March 2019 to identify and assess flight shopping and booking functionalities, ancillary products, services, travel management tools, etc. integrated within the airline Android apps. The airline apps were evaluated on 37 unique aspects/components across various stages of app launch, flight search, booking, travel management, loyalty/customer logins, products sold, payment methods and customer support. videc shall not be held responsible for any loss - tangible or intangible, due to the inclusion (or not) of the analysis in videc's App in the Sky.

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