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Many airlines around the world have adopted optional services as an important new revenue stream. Despite the seeming ubiquity of this product unbundling – from bag fees and premium seats to onboard meals and Wi-Fi – the party has just begun. Barring a major consumer backlash or governmental intervention, this is only the beginning of the optional services push. While bag fees have been the dominant revenue generator, carriers have been experimenting with and introducing all sorts of add-ons, with premium meals, sometimes pre-ordered, likely to be one of the next merchandising menu choices.
Table of Contents
Fear, Uncertainty and Doubt
The American (Airlines) Dream
Distributors Invest in Infrastructure
Technology Issue or Something More?