ancillary revenue

Ancillary revenue refers to the additional income that businesses earn beyond their primary product or service sales. For example, airlines generate ancillary revenue through charges for baggage, seat selection, and in-flight refreshments. Similarly, hotels might earn extra income from room service and spa services. This type of revenue is crucial for companies as it can significantly boost overall profitability and help offset costs. Essentially, ancillary revenue highlights how businesses can maximize their earnings by offering extras that enhance the customer experience.