Category: News

If you’ve ever wondered why you find yourself paying for seat upgrades, priority boarding, or even in-flight meals, you’re not alone. In the latest episode of the Revenue Vector Podcast, Kris Glabinski dives deep into the psychology and strategy behind ancillary sales in the airline industry — and the insights go far beyond aviation. Here are our three biggest takeaways: 1. Smart Pricing Starts with Structure, Not Guesswork Airlines don’t just “pick a number” for extra legroom or baggage fees. They use a structured pricing framework that balances: This framework…

Overview Dynamic pricing has become a cornerstone of modern airline revenue management, enabling carriers to adjust fares in real time based on demand, competition, and market conditions. With over 80% of US airlines expected to use advanced dynamic pricing by 2025, measuring the effectiveness of these initiatives is essential for maximizing profitability and justifying technology investments. Accurate measurement helps revenue managers refine strategies, demonstrate ROI, and stay ahead in a competitive landscape. What Key Metrics Should Airlines Track to Assess Dynamic Pricing Performance? “The success of dynamic pricing lies not…

Aggregate Intelligence has published a free eBook that explores the behavioral and pricing strategies behind successful ancillary sales in the airline industry. This eBook is written specifically for airline revenue and commercial teams looking to improve ancillary performance through more informed pricing and design. 📘 The Psychology of Buying Behaviors: Why Ancillary Products WorkBy Kris Glabinski, VP Strategy, Aggregate Intelligence What the eBook Covers This eBook is written specifically for airline revenue and commercial teams looking to improve ancillary performance through more informed pricing and design. Topics include: Who It’s…

The airline industry is experiencing a resurgence in passenger demand, with 2024 seeing a 10.4% increase in global air traffic compared to 2023, surpassing pre-pandemic levels by 3.8% (IATA, 2025). This growth presents a lucrative opportunity for airlines to maximize revenue through in-flight services and seat upgrades. With the right strategies, airlines can enhance passenger experience while boosting ancillary revenue streams. Below, we explore the most effective ways to monetize these services. “We will spend $400 million upgrading seats and in-flight entertainment that’s as old as the first iPhone.” ​-Campbell…

Three action-packed days at FTE EMEA & Ancillary & Retailing 2025 (10–12 June, RDS Dublin) underscored just how quickly our industry is evolving from a “seat-plus-bags” mindset to fully integrated, data-driven retailing. FareTrack’s parent company, Aggregate Intelligence, exhibited at the event, showcasing a powerful new suite of ancillary intelligence solutions for airlines. Below are a few key themes that resonated most—drawing from both on-the-ground conversations and highlights in the official FTE roundup. Ancillary Revenue Hits a New High—And Keeps Climbing If there were still any doubts about the importance of…

The airline industry is increasingly relying on non-ticket revenue streams, such as in-flight services, seat upgrades, and ancillary offerings, to boost profitability. In 2024, global ancillary revenue reached $120 billion, accounting for 15% of total airline revenue (IATA, 2025). Personalization has emerged as a key driver in enhancing these revenue streams by tailoring services to individual passenger preferences. This article explores how personalization can unlock new growth opportunities for airline revenue managers. “In the quest for personalization, airlines must not only unbundle services and products from the ticket price but…

Artificial intelligence has revolutionized how airlines identify and target their most valuable customer segments. By analyzing vast quantities of structured and unstructured data, AI systems can now detect nuanced patterns in customer behavior, spending potential, and loyalty characteristics that were previously impossible to discern at scale. This capability enables revenue managers to deploy highly targeted marketing campaigns with unprecedented precision, significantly improving conversion rates and maximizing revenue per customer. The pursuit to analyze customer willingness to pay for not just the ticket but also for each ancillary attribute presents a…

Airline ancillary revenue has transformed from a supplementary income stream to a critical revenue pillar, reaching an unprecedented $148.4 billion worldwide in 2024. As airlines continue to recover from pandemic disruptions, ancillary services have become essential to profitability strategies, contributing 14.9% to global airline revenue. For revenue managers seeking to optimize these streams, understanding emerging trends, technological innovations, and personalization opportunities is crucial to staying competitive in an increasingly sophisticated marketplace. How is the ancillary revenue landscape evolving in 2025? The ancillary revenue ecosystem is undergoing rapid transformation, driven by…

Airline ancillary revenue refers to all income generated from sources other than the base airfare. This includes a wide range of services such as baggage fees, in-flight purchases, seat upgrades, and loyalty program monetization. In 2024, global ancillary revenue is expected to reach $148.4 billion, a 26% increase from 2023’s $117.9 billion and almost $39 billion more than pre-pandemic levels in 2019. Ancillary revenue has become a critical pillar of airline profitability, now accounting for 14.9% of total airline revenue globally. It allows airlines to maintain competitive base fares while…

Overview The airline industry is experiencing a resurgence in passenger demand, with 2024 seeing a 10.4% increase in global air traffic compared to 2023, surpassing pre-pandemic levels by 3.8% (IATA, 2025). This growth presents a lucrative opportunity for airlines to maximize revenue through in-flight services and seat upgrades. With the right strategies, airlines can enhance passenger experience while boosting ancillary revenue streams. Below, we explore the most effective ways to monetize these services. “We will spend $400 million upgrading seats and in-flight entertainment that’s as old as the first iPhone.”…