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Merchandising Ancillary Revenue, Fare Families, Branded Fares and "a la carte" Pricing: Module 14
Gary Parker
(Author)
·
Independently Published
· Paperback
Merchandising Ancillary Revenue, Fare Families, Branded Fares and "a la carte" Pricing: Module 14 - Parker, Gary
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Origin: U.S.A.
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Synopsis "Merchandising Ancillary Revenue, Fare Families, Branded Fares and "a la carte" Pricing: Module 14"
In an effort to overcome the perception of a seat as a commodity, and to increase yields and loyalty, a key initiative in the passenger transportation community is the introduction of branded products with their associated privileges.Consumers want more choice and more value, and whether a passenger carrier chooses to add ancillary travel or merchandising options to their website, the additional options should benefit most consumers.From a revenue management perspective, seats have always been sold from the bottom up - from the lowest qualified fare.However, with the introduction of branded products, a passenger carrier has the capability to sell from the middle or the top, based on a consumer's preference for the privileges associated with a branded product. The branded fare approach is one of the latest pricing methods used by airlines to boost ancillary revenue. This encourages consumers to buy a higher fare by including a package of defined amenities.Ancillary revenue product and service experimentation are evolving as we move forward. Airlines all over the world are adding optional extras such as pre-paid baggage, early boarding, assigned seating, and pre-order meals.