Airline Ancillaries: The Captives Are Capitulating

Summary

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From delays, cancellations and missed connections, to lost baggage and soaring ticket prices, travelers have never been shy about voicing their gripes and grudges with airlines. When airlines first began unbundling, consumer response was hardly enthusiastic. Accustomed to all-in-one, travelers expressed little interest in, or intent to purchase, ancillary offers from airlines. When Phocuswright surveyed leisure air travelers in late 2010, consumer reactions were far from promising. At the time, less than one in five had either purchased – or expressed any interest in purchasing – an airline service such as extra leg room, in-flight entertainment or priority boarding.

But airlines also had an incredible asset: a large, restless and captive audience. As it turns out, they placed a smart bet indeed on captivity. Air traveler consumption of ancillary offerings has risen significantly and steadily – perhaps faster than many airlines may have anticipated.