Ancillary revenue
Ancillary Revenue is a key tool for generating higher customer yield, essential for charter airlines, scheduled airlines and low cost carriers.
The seat is a unique item of inventory, which is consumed on every flight, yet fully available for the next flight. So airlines need to make as much as they can during its occupancy. Most charge for checked and excess baggage. Some Scheduled Carriers, who previously have been largely limited to on board Duty Free sales, have changed their business model by charging for food and drinks to align with Low Cost Carriers and Charter Airlines who generate additional revenue from beverages, scratch cards and extra leg room by over-wing exits. This adds to commissions from hotel and car hire reservations and revenue from advertising, worth $117.9bn globally in 2023.
By activating our seat mechanism, it is possible for the first time ever, to vary the ratio of Premium to Economy seats on any flight according to passenger demand, anywhere on the aircraft, without physically changing the seat pitch, thereby using the seat as a tool to drive Ancillary Revenue. We have models which show it is easily possible to derive an extra €0.5 - €2.4m revenue, per aircraft, per annum, from comfort upgrades.
Our unique Cabin Layout Management System allows the passenger to upgrade on-line, at check in or even on board for a small fee, winning Aviation Week’s global Supplier Innovation Challenge.
A former owner of one of the world's most renowned seat vendors said: 'Being able to vary cabin layout according to passenger demand is one of the most exciting developments in aviation in over thirty years'.