Airline efforts to fight commoditization have inspired a broad array of ancillary products – and spurred initiatives that aim to usher in a new era of air shopping. From bundles and branded fares to personalized offers and pricing, travelers will have more options than ever before. As air-product complexity grows, however, transparency and value will continue to be primary drivers of travelers’ buying decisions.
Much of the discussion surrounding ancillary products (i.e., revenue-generating products beyond the air ticket itself) and new distribution capability has focused on conflicts among industry stakeholders. This article considers how a shift toward air merchandizing and personalization is likely to impact travelers' shopping and buying habits, and highlights opportunities and pitfalls relevant to all travel segments.
- Airline Product Innovation
- Intermediaries: Aggregating Complexity