Posts with the tag "ancillary"


Reclining Your Seat In The Plane – Right or Privilege?

CNN recently reported on an in incident that took place on an American Airlines flight from Los Angeles to Denver: When a passenger reclined his seat, he got into a heated argument with the passenger sitting behind him. As he insisted on his “right” to recline his seat, the passenger behind him grabbed his ear and pulled it back and down. When the aircraft landed, the attacker was arrested by the police.

What sounds like a rather amusing story, raises an interesting question: Is reclining your seat a right or is it a privilege? Continue reading 


Customer Needs As A Scale Of Rating For Travel Technology – Not Vice Versa

Around $ 22.6 billion – is the estimated additional revenue in 2010 that airlines are generating by direct sales to passengers or additional trip-related services, the so-called ancillary services. An increase in the years to come is expected.

On the occasion of the PASS Travel Talk, Farelogix CEO, Jim Davidson pointed out the huge revenue that is possible, by unbundling flights into individual services to complement other services and then pricing these “modules”, such as Door-to-door baggage service, lounge access or jump-the-line. The customer receives and pays only what he wants – Click & Buy.

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Statement About Travelport’s “Myth-Busting”

These days, direct connections and the GDSs’ ability to display airlines’ ancillary services are an important issue for the travel industry and each side’s opinions are diametrically opposed. Travelport has published a statement concerning AA’s direct connect. Travelport disagrees with AA and claims most of AA’s statements to be “myths”.

Although Travelport’s argumentation seems valid at first glance, when thinking about it you realize that things are not as easy as Travelport would like them to be. We believe there is a need for clarification. So, to understand our point-of-view, please read the following statement: Continue reading 


Ancillary Revenues – Blessing or Curse?

According to a study recently published by Amadeus and IdeaWorks Airlines’ ancillary revenues will increase from $13.5 billion in 2009 to $22.6 billion this year. In 2009 United Airlines had a total of about $1.5 billion in ancillary revenues.

For airlines ancillary revenues accounted for a huge part of their total revenues, like Allegiant (29.2%), Spirit Airlines (23.9%) and RyanAir (22.2%). This clearly indicates the importance of ancillary fees for the entire travel industry including low-cost-carriers, traditional airlines travel agencies and the GDSs.
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PASS is Technology Provider for American Airlines Direct Connect

By providing a direct link into the host reservation system, among others, American Airlines provides direct connectivity to shopping and pricing facilities, booking, ticketing and post ticketing servicing transactions through Farelogix.

The AA Direct Connect provides technical flexibility in order to ensure enhanced offerings and customized services. Flexibility in adapting its delivery of optional services, based on changing customer demands, instead of being static by only collaborating with antiquated GDSs is the most important step towards the desired product presentation and innovation. Continue reading