Ancillary segments, big revenue for airlines - can railways take the tea trolley a step further?

• There is alot of hype today about the introduction of unbundling airline products to make extra revenue for the airlines. Ancillary segments are 'taking off' (excuse the pun) and a recent publication states that it's thanks to the low cost carrier (LCC) model. If we cast our minds back, we remember that when the LCC came onto the scene the ticket price was cheap, but you had to pay for other things that you took for granted on a normal airline.

  An electronic miscellaneous record (EMD) record is being launched inorder to facilitate the sales of ancillary fees through the agent channel including the collecting of these fees. Some railways do offer other services through their products, iDTGV is a good example of adding other add ons to your purchase of the ticket for the journey.

  I guess the famous train trolley that rolls up and down the carriages is a perfect example of how extra money can be made from a train journey and was in place long before the LCC introduced it, however how come the airline indiustry has taken it a step further than the railway industry and expects to generate up to USD 58 billion in 2010? .

  

  22 Jan 2010

  Posted by: Philip Martin