Ancillary Revenue Management

Ancillary Revenue Management involves strategies used by businesses, particularly in the travel and hospitality industries, to generate additional income beyond their primary services. Instead of solely relying on ticket prices or room fees, companies offer extra services or products, like baggage fees, seat upgrades, in-flight meals, or hotel amenities. By effectively managing and pricing these options, businesses enhance customer experience while boosting profitability. This approach not only meets diverse customer needs but also optimizes their operational revenue, leading to a more sustainable business model.