upselling Ancillaries in
Airline apps 1Q19
Ancillaries – or unbundling of services – is an important aspect of airlines' sales strategy and revenue. Fundamentally, one shoe does not fit all. Industry research pegs ancillary sales contribution of airlines revenue at 12% and growing fiercely. 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 airlines' Android mobile app shopping flow.
54%
Full Service Carriers
Upselling preferred seat selection is the most pervasive ancillary o ering across airlines' Android mobile apps. Six out of ten airline apps o er seats for a price during the purchase cycle. This is even more prominent among low-cost carriers (LCCs), which have less to none dependency on global distribution system and their related technologies, compared to their full-service peers. By contrast, LCCs mostly deploy proprietary or white-labelled solutions to aid in upselling ancillaries
Additional Baggage Purchase
Baggage sales rank second among the ancillary products airlines sell via their mobile apps. Overall, one in two airline Android apps upsell baggage sales in the shopping funnel. While this stat may appear promising, there's a strong disparity between the traditional caaiers and the LCCs. The latter are far ahead of their full service counterparts in offering additional baggage sales to their mobile users.
43%
Full Service Carriers
Flight disruption is a significant threat to airline operations and expense line - particularly in Europe, which has stringent Air Passenger Rights. Yet, o ering travelers the safety and comfort by upselling travel insurance places airlines in a more positive light. Six out of ten LCCs o er travel insurance vs. just 30% of the full-service carriers. Overall, airlines have some more ways to go in integrating travel insurance in their mobile shopping path.
Total
Full Service Carriers
Low-Cost Carriers
Airlines have done rather little in upsel ling meals via their Android apps. Two in five airline apps analyzed - majority of them LCCs - offered F&B purchase in the shopping path. 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.
Total
Full Service Carriers
Low-Cost Carriers
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. Remarkably, one in two LCCs already propose priority service in their apps versus only one in five full-service airlines. Clearly, it's challenging for traditional carriers to break the shackles off the all-inclusive offerings.
22%
Full Service Carriers
Retail Shopping / Duty
Free Purchases
Capitalizing on the ecosystem surrounding the air passenger experience is an emerging area of interest for airlines. To that effect, airlines are either retailing onboard or tying up with partners on the ground, especially at the airports. Taking this a step further, some airlines are incorporating retail shopping within their apps. Think of it as Amazon or Etsy baked within the airline apps, but at a limited scale. The retail opportunity is vast and those doing it right, stand a chance to be part of their travelers' lifestyle.
Total
Full Service Carriers
Low-Cost Carriers
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.
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 ansillaries in
Airline apps - 1Q19
Ancillaries – or unbundling of services – is an important aspect of airlines' sales strategy and revenue. Fundamentally, one shoe does not fit all. Industry research pegs ancillary sales contribution of airlines revenue at 12% and growing fiercely. 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 airlines' Android mobile app shopping flow.
Upselling preferred seat selection is the most pervasive ancillary o ering across airlines' Android mobile apps. Six out of ten airline apps o er seats for a price during the purchase cycle. This is even more prominent among low-cost carriers (LCCs), which have less to none dependency on global distribution system and their related technologies, compared to their full-service peers. By contrast, LCCs mostly deploy proprietary or white-labelled solutions to aid in upselling ancillaries
54%
Full Service Carriers
Baggage sales rank second among the ancillary products airlines sell via their mobile apps. Overall, one in two airline Android apps upsell baggage sales in the shopping funnel. While this stat may appear promising, there's a strong disparity between the traditional caaiers and the LCCs. The latter are far ahead of their full service counterparts in offering additional baggage sales to their mobile users.
43%
Full Service Carriers
Flight disruption is a significant threat to airline operations and expense line - particularly in Europe, which has stringent Air Passenger Rights. Yet, o ering travelers the safety and comfort by upselling travel insurance places airlines in a more positive light. Six out of ten LCCs o er travel insurance vs. just 30% of the full-service carriers. Overall, airlines have some more ways to go in integrating travel insurance in their mobile shopping path.
Airlines have done rather little in upsel ling meals via their Android apps. Two in five airline apps analyzed - majority of them LCCs - offered F&B purchase in the shopping path. 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.
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. Remarkably, one in two LCCs already propose priority service in their apps versus only one in five full-service airlines. Clearly, it's challenging for traditional carriers to break the shackles off the all-inclusive offerings.
Retail Shopping / Duty
Free Purchases
Capitalizing on the ecosystem surrounding the air passenger experience is an emerging area of interest for airlines. To that effect, airlines are either retailing onboard or tying up with partners on the ground, especially at the airports. Taking this a step further, some airlines are incorporating retail shopping within their apps. Think of it as Amazon or Etsy baked within the airline apps, but at a limited scale. The retail opportunity is vast and those doing it right, stand a chance to be part of their travelers' lifestyle.
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.
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.
