CarTrawler Releases Ancillary Revenue Report

CarTrawler, an online global car rental platform, has released a report on ancillary revenue.

Partnering with IdeaWorksCompany, the “Top 10 Things You Need to Know about Ancillary Revenue” study looks at the ancillary revenue revolution that is impacting the car rental, air travel and hotel industries.

Here are a few ancillary revenue tips, according to the study:

• The king of a la carte fees remains baggage charges, which totaled $3.5 billion in the United States in 2012. Bag fees are now spreading across the world to Europe and beyond.

  • Service-specific fees, such as bag charges, inherently yield better results for consumers by turning a once-free item into a stand-alone business. Mishandled bags, for instance, have declined more than 50% worldwide since 2007.
  • High-value customers — the key demographic sought by service industries — are happy to utilize ancillary services such as premium travel (early boarding and extra legroom).
  • Transparency is key to success. Not only do government regulators worldwide require disclosure and clarity with ancillary fees, the best companies realize that no amount of extra revenue can make up for the damage represented by angry consumers — a fact Ryanair is learning as it moderates its “crawl over broken glass” customer-service philosophy.
  • Frequent-flier programs bring in billions in extra revenue through co-branded credit cards and also provide a welcome marketing platform for other services, such as car rental and lodging.

To view the full report, visit http://info.cartrawler.com/airlineseries/en.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.