Ancillary Services

In the case of the airline, ancillary services are other products and services, beyond selling the standard seat ticket. These options range from add-ons like extra baggage, seat upgrades, onboard meals, Wi-Fi, travel insurance, and lounge access. Ancillary services are an important revenue source for airlines and they make the travel process more convenient and more personalized for passengers.

Ancillaries In a market as competitive as the aviation industry, ancillary services are now a standard feature in any flight booking engine. With ancillary options integrated within the booking process, airlines and agencies can boost revenues and provide travellers with greater flexibility and choice.

Types of Airline Ancillary Services

1) Baggage-Related Services

• Excess Baggage – Excess baggage can be pre-booked at the time of booking.
• Priority Baggage Delivery – Checked bags will be first to be returned at arrival.

2) Seat Selection & Upgrades

• Preference Seating – Window, aisle or exit row seating options, for when you want to get a bit more comfortable.
• Extra Legroom or Premium Seats – Get more space without the class jump.
• Cabin Upgrades – You can upgrade from economy to business or first class on a purchase or points basis.

3) Onboard Services

• Dining – Pre-reserved or specialty dining on board.
• In-flight Entertainment & Wi-Fi – Enjoy movies, TV shows, news, music and special shows in addition to online games, all from your own personal device.
• Duty-Free Shopping – Shop on-board or pre-order for pick up.

4) Travel Flexibility Services

• Flight Change & Cancellation Options – Ability to reschedule or cancel your flight with no change fees.
• Refundable Fare Add-Ons – Partial or 100% refund if you cancel.

5) Membership & Loyalty-Based Ancillaries

• Airlines Programs – Accrue and redeem points towards upgrades and other goodies.
• Airport lounge access – Food, Wi-Fi, places to lie down.
• Subscription Model – Monthly or annual memberships that come with ancillaries such as free baggage or priority boarding.

Applications of Ancillary Services in Airline Booking

Major applications of ancillary services in airline booking include:

• Meal services on flight
• In-flight beverages
• Food or beverage packaging for delivery of food on the ground, provided by the menu order
• In-flight sold goods services (shopping)
• Ground services: at airports, during all flight stages, broadcasting, flights selection, airport tax, baggage
• Services ordered by passengers
• Taxi services
• Hotel services
• Car hire services
• E-tickets, e-vouchers and e-receipts
• Wine or tobacco orders at the shop before flight
• Orders to deliver food on the ground at the airport at the preferred destination
• Solutions for reimbursement in case of cancellation of services
• Management of purchased and checked luggage

The purpose of application of the above services is to improve passengers’ comfort by providing them above-mentioned services during they perform the ticket reservation for their flight journey while following e-receipts objective.

Boosting Airline Revenue

Ancillary services are worth billions of dollars in non-ticket revenue to airlines around the world. Tickets are getting cheaper, while ancillaries are what keeps the airlines going.

Enhancing Passenger Experience

Personalized add-ons during the booking process help airlines enhancing a better travel experience. For instance, a family may want to buy seat selection to ensure they can sit together while business travelers are more likely to value lounge access or Wi-Fi.

Supporting Travel Agencies & OTAs

Ancillaries integrated with an online flight booking engine help travel agency to upsell and cross sell correctly. It adds more value per booking and enhances customer retention.

Corporate Travel Benefits

Business travelers appreciate the flexibility and comfort. Ancillary services such as refundable fares, extra baggage and priority boarding make business travel easier and ensure corporate policy compliance.

Advanced Models of Ancillary Services

As technology redefines air travel, airlines are embracing digital-first strategies for add-ons:

• AI-Enabled Ancillary Recommendations – Machine-learning engines predicting the needs of the traveler (like additional baggage to frequent international flyers).
• Dynamic Bundling – Airlines piece together flights + ancillaries (seat + bag + meal, etc) for better conversion.
• NDC-Enabled Ancillaries – IATA’s New Distribution Capability (NDC) sets the technical standards for airlines to provide additional product content and personalized offerings in a booking engine, such as seat maps, bag images, and personalized offers — content not supported on legacy GDS systems.
• Mobile-First Ancillaries – Passengers can book bag, meal, or wifi on the go, even after making a reservation.
• Blockchain Ancillaries – Secure and visibility on transaction supporting add-ons such as insurance or upgrading tickets.

The Significance of Ancillary Services in Airline Reservations

Ancillary services are now not an option but a strategic necessity in the contemporary air travel. Airlines can use them to diversify their revenue, offer things tailored to individuals and put the power of choice in the hands of travellers. For flyers, ancillaries are flexibility, comfort and convenience.

And from a business perspective, adoption of ancillary services into a flight booking engine means higher conversion and upselling rates, which is pleasing. As more AI, NDC and blockchain is brought in by the airlines so the place of ancillaries will strengthen as they define the shape of future airline distribution.