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.

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