Frontier Airlines is considering selling travel insurance or vacation packages, a tactic many airlines have invested in, looking for a way to diversify its sources of revenue. It could announce the results of its attempts in revenue diversification in the next six months.
Frontier’s cross-promotional partnership with Airtran will likely generate five or six million dollars in additional revenue and may pursue similar pacts with other airlines. The partnership automatically forwards those contacting one airline about a route operated by the other to the other airline, rather than a more traditional route, which is to sell the flight under its own flight number. This arrangement also includes reciprocal frequent flyer arrangements.
Meanwhile, Reuters reports that Jetblue is also looking for new revenue. It may offer a fleece blanket and blowup pillow for around $5 as an alternative, but not a replacement for its free pillows and blankets. Jetblue currently offers complimentary headphones to its passengers, but offers a better-quality set for an additional dollar.
Jetblue is looking, as is Frontier, for more profit from these sources. It wants to increase sales of in-flight movies and alcoholic beverages by selling them in advance through the website. Overall, it hopes to double non-flight revenue sources.
We approve of value-added services. If Jetblue can allow for people to see what the movie will be when they book a flight and offer them the option of prepaying for it then, it is certainly in Jetblue’s interest to offer them that option. Other value-added services can include meals on aircraft that no longer offer them, movie player rentals, etc.
By offering these services online, in a manner that integrates with the standard booking flow and does not overwhelm a passenger with advertisements, airlines can increase their revenue and add to people’s travel convenience.
What we would object to is if US Airlines choose to follow the Ryanair model. Ryanair, the European discount carrier considers everything a value-added service. It sells everything it can on the plane and on its website. We have long criticized its lack of taste. Air travel may no longer be the classy experience it once was, but it does not need to be reduced to a circus, run by a disciple of P.T. Barnum.
Airlines should be aware of this as they pursue ways to make money from these extra services without making the booking experience or the flight seem akin to those free weekend vacations where they try to sell you a timeshare.