Why Ancillary Revenues Don’t Much Matter

Let’s cut to the nub of this issue.  No one will  ever know for sure if ancillary revenues make airlines more profitable.  There are just too many moving parts in an airline’s  revenue stream.  Sure, airlines may report an extra billion dollars in ancillary revenue (AR, from here on) – but what did fares do?

If fares went down, then maybe the extra AR revenue Continue reading

Continental Gets It Right, Scene 1

Continental Airlines will charge for meals this fall.  It’s about time.  And money, and choice.

Lots of travel managers and many more travelers will hate seeing this movie.

“You shouldn’t do this – it’s going to cost me more money!”  “You’re just like all the other airlines – unbundling every little thing to make more money”…I can hear the wailing all the way up here in the back seats of this movie theater.

And there, my movie-going readers, is the lesson you already know.  Customers want choices. Continue reading