Typology of ancillary revenue in airlines
Ancillary revenue is the most dynamically growing group of revenue in airlines as they seek new sources of income in this low-margin sector. The paper identifies individual sources of this sort of revenue proposes a typology of ancillary revenue with three main categories: unbundled products, commission-based ancillaries and other. Unbundling and offering new products and services was named as the main source of extra revenue for airlines. Special attention was given to the differences between network legacy carriers and low cost carriers in terms of ancillary revenue. The analysis showed that while LCCs show the way, NLCs keep following closer and closer. (original abstract)
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