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Low-Cost Airlines: Sources For Generating Revenue  
User currently offlineGVA777 From Switzerland, joined Sep 2005, 2 posts, RR: 0
Posted (8 years 10 months 2 weeks 2 days 13 hours ago) and read 4994 times:

Greetings All,

I was just thinking about potential sources where low-cost airlines could start generating more revenues from sources other than ticket sales. To get us started, I was thinking:

01) PTVs: Perhaps low-cost airlines could install PTV systems and charge the customer for the movies, music and entertainment based on a 'pay per view' system.

02) Ryanair mentioned plans of using in-flight gambling to generate revenue.

03) in-flight Internet

04) in-flight Catering

So what are the other things that could prove to be profitable for airlines, hopefully those cheap tickets, could get even cheaper along with a little fun at the same time. Looking forward to your views.

Cheers.

29 replies: All unread, showing first 25:
 
User currently offlineRichardw From United Kingdom, joined May 2001, 3755 posts, RR: 0
Reply 1, posted (8 years 10 months 2 weeks 2 days 13 hours ago) and read 4984 times:

Quoting GVA777 (Thread starter):
PTVs: Perhaps low-cost airlines could install PTV systems and charge the customer for the movies, music and entertainment based on a 'pay per view' system.

I think FR has tried this one and it failed.


User currently offlineMatt D From United States of America, joined Nov 1999, 9502 posts, RR: 47
Reply 2, posted (8 years 10 months 2 weeks 2 days 13 hours ago) and read 4983 times:

Accessorial charges, add ons, and surcharges are the bread and butter for any business, not just airlines nowadays. A few examples besides what you mentioned:

Delivery confirmation
Expeditied/rush service
Change of itnerary/"early termination"
demurrage/delay time
Excess baggage
Drinks/food
paper ticket


User currently offlineOrion737 From , joined Dec 1969, posts, RR:
Reply 3, posted (8 years 10 months 2 weeks 2 days 13 hours ago) and read 4970 times:

In flight catering is a good idea for extra revenue, particulrly on some of the longer sectors. Jet2 for instance, fly from LBA-TFS a flight of 4 and a half hours duration.

These longer sectors EZY LGW-ATH, being another example, could do well selling a hot meal maybe £5 each sector. If one adds taxing and boarding time the Jet2 service to TFS is 5 hours at least.

Trouble is to exploit this sales opportunity they would need full galley and most LCCs dont have that facility.

No one is suggesting a flight of 1 or even 2 hours should offer hot meals, as take-up would likely be low but longer sectors offer a good way for LCCs to make more money.


User currently offlineHAWK21M From India, joined Jan 2001, 31684 posts, RR: 56
Reply 4, posted (8 years 10 months 2 weeks 2 days 12 hours ago) and read 4949 times:

Advertising space on the Aircraft is still the best. Smile
regds
MEL



Think of the brighter side!
User currently offlineRichardw From United Kingdom, joined May 2001, 3755 posts, RR: 0
Reply 5, posted (8 years 10 months 2 weeks 2 days 12 hours ago) and read 4949 times:

Didn't Buzz try a pre-order meal service, not sure if it was successful.

User currently offlineOrion737 From , joined Dec 1969, posts, RR:
Reply 6, posted (8 years 10 months 2 weeks 2 days 12 hours ago) and read 4934 times:

Buzz offered mainly short 1-2 hour duration flights to France and Continent. I was proposing a meal option for purchase on longer flights like Jet2s LBA-TFS or EZY LGW-ATH.

As no frills carriers fly further like Malta and Canaries I think a meal for purchase would have high take up. After all Monarch Scheduled offers meals for purchase on these longer runs.


User currently offlineRichardw From United Kingdom, joined May 2001, 3755 posts, RR: 0
Reply 7, posted (8 years 10 months 2 weeks 2 days 12 hours ago) and read 4905 times:

Quoting Orion737 (Reply 6):
Buzz offered mainly short 1-2 hour duration flights to France and Continent

Yep that's true.

U2's LGW-ATH is an early morning service, 06:40 departure, I'd certainly want something hot of the egg, tomato and bacon variety if I was on that flight.


User currently offlineBestWestern From Hong Kong, joined Sep 2000, 7213 posts, RR: 57
Reply 8, posted (8 years 10 months 2 weeks 2 days 12 hours ago) and read 4881 times:

Quoting GVA777 (Thread starter):
PTVs: Perhaps low-cost airlines could install PTV systems and charge the customer for the movies, music and entertainment based on a 'pay per view' system.

Using a 2hr flight average - people arent interested in renting a unit - not enough time to watch a movie.

Quoting GVA777 (Thread starter):
in-flight Internet

You try using your laptop with 29'' pitch.

Quoting Richardw (Reply 5):
Didn't Buzz try a pre-order meal service, not sure if it was successful.

Song and DL tried it also - a failure, due to the food wastage and cost of serving gates.



The world is really getting smaller these days
User currently offlineMax999 From United States of America, joined Dec 2005, 1072 posts, RR: 0
Reply 9, posted (8 years 10 months 2 weeks 2 days 11 hours ago) and read 4839 times:

Bathroom Fee.

Swipe your credit card for 10 minutes of bathroom usage.

Flights Under 1 Hour: $5
Flights 1-3 Hours: $3
Flights 3-5 Hours: $2
Flights 5 or more Hours: $1

[Edited 2005-12-12 19:08:38]


All the things I really like to do are either immoral, illegal, or fattening.
User currently offlineLeonB1985 From , joined Dec 1969, posts, RR:
Reply 10, posted (8 years 10 months 2 weeks 2 days 11 hours ago) and read 4836 times:

Surprised nobody's decided to charge for using toilets (I know MOL has mentioned it!) - or would that go against human rights? Not sure I'd agree with paying for a pee, but then again, it's so common 'on the ground' in much of Europe.

User currently offlineCRJ900 From Norway, joined Jun 2004, 2206 posts, RR: 1
Reply 11, posted (8 years 10 months 2 weeks 2 days 11 hours ago) and read 4822 times:
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Quoting Orion737 (Reply 6):
As no frills carriers fly further like Malta and Canaries I think a meal for purchase would have high take up.

Sterling Airways earns LOTS of money on inflight sales. Nothing is free, prices are fair, I guess... they sell hot food on medium-haul flights (Scandinavia-Spain). Every time I fly Sterling the FAs are kept very busy as people seem to hoard food and drinks. Also, lots of pre-booked duty free goods fill most seats on return flights to Norway.

Sterling fly their B738s with 189 seats and the full galley configuration (G1,G2 and G4), so they have lots of room for sellable goods.

The full rear galleys found on the 737 and A320 family aircraft are damn huge - you can pack in tons of goods. If you have a galley upfront as well you can fly all day without restocking...



Come, fly the prevailing winds with me
User currently offlineSoups From Ghana, joined Jun 2004, 3438 posts, RR: 14
Reply 12, posted (8 years 10 months 2 weeks 2 days 11 hours ago) and read 4815 times:

1- charge for toilets?
2- no free bagage allowance... pay as weigh service?
3- coins for lockers? lol lol
4- Advertisement inside of the plane such as on the walls.. that should be funny.
5- pay extra for emergency exit seats
6- You could always charter an Aircraft and have a birthday in it.. Lol think im watching too much TV recently



Next destinations, Suarabaya, beirut, paris, Accra
User currently offlineVV701 From United Kingdom, joined Aug 2005, 7620 posts, RR: 17
Reply 13, posted (8 years 10 months 2 weeks 2 days 9 hours ago) and read 4752 times:

Quoting Soups (Reply 12):
pay extra for emergency exit seats

Or perhaps pay to use the emergency exit if required?!?


User currently offlineAisak From Spain, joined Aug 2005, 763 posts, RR: 10
Reply 14, posted (8 years 10 months 2 weeks 2 days 9 hours ago) and read 4720 times:

Quoting Soups (Reply 12):
2- no free bagage allowance... pay as weigh service?

Not only for the baggage but for the person itself


User currently offlineHKGKaiTak From Australia, joined Jun 2005, 1050 posts, RR: 0
Reply 15, posted (8 years 10 months 2 weeks 2 days 5 hours ago) and read 4652 times:

Quoting GVA777 (Thread starter):
PTVs: Perhaps low-cost airlines could install PTV systems and charge the customer for the movies, music and entertainment based on a 'pay per view' system.

JQ has this service, I think $5 or something to hire a DVD player with screen for your flight - not sure of the details.

DJ is also thinking about a Foxtel live service which is pretty similar.

Doen't WS's inflight TV works about the same way?

Quoting Soups (Reply 12):
5- pay extra for emergency exit seats

DJ already does this, the first row and I think the emergency exit rows as well are designated as "Blue Zones" which has more legroom than other seats, you pay $25 per sector extra for them.



4 Engines 4 LongHaul
User currently offlineExFATboy From United States of America, joined Jul 2003, 2974 posts, RR: 9
Reply 16, posted (8 years 10 months 2 weeks 1 day 23 hours ago) and read 4559 times:

I'm sure Ryanair is working on a way to charge you for air...

User currently offlineSimpilicity From , joined Dec 1969, posts, RR:
Reply 17, posted (8 years 10 months 2 weeks 1 day 23 hours ago) and read 4546 times:

Seriously, luggage limits could be dropped a bit, especially in summer or to sun destinations & airline could make a bit on cargo ???

User currently offlineBCAL From United Kingdom, joined Jun 2004, 3384 posts, RR: 15
Reply 18, posted (8 years 10 months 2 weeks 1 day 20 hours ago) and read 4504 times:

Considering what UK charter airlines do to generate extra revenue
  • Additional fee to pre-select your seats
  • Additional fee for seats with extra pitch in the emergency exit rows etc, conditional on the passenger opting for the meal
  • Meals charged extra
  • Addition fee if tickets to be collected at the airport
  • Additional fee for paper tickets
  • All drinks to be paid for
  • Additional charges for carrying sports equipment
  • Strictly imposed luggage allowance - anything above 15kgs for checked baggage and 10kgs for hand luggage to be charged extra

The UK LCCs have added
  • Premium rates for contacting customer service centers
  • Additional fee to change/amend booking details on top of extra charges
  • Advertising in the cabin
  • Insurance automatically added to cost of flight unless customer specifically chooses not to take this
  • Inflated prices for drinks/snacks available for purchase on board, including (in FR's case) bottled tap water at £2.30
  • Lottery and scratch cards must be compulsorily purchased
  • Advertised fares of less than £1 mysteriously becoming nearer £70 when taxes, duties, airport charges, wheelchair costs etc are added on
  • Wheelchair charge (on FR)

and the list could go on and do not even think of asking for help or a refund if something goes wrong or your flight has been cancelled. You paid 99p for the flight so the LCC will give you 99p to get back home from some airport in the middle of nowhere.

[Edited 2005-12-13 10:14:15]


MOL on SRB's latest attack at BA: "It's like a little Chihuahua barking at a dying Labrador. Nobody cares."
User currently offlineBestWestern From Hong Kong, joined Sep 2000, 7213 posts, RR: 57
Reply 19, posted (8 years 10 months 2 weeks 1 day 20 hours ago) and read 4490 times:

The only thing free on Ryanair is ICE, according to Mick.


The world is really getting smaller these days
User currently offlineSoups From Ghana, joined Jun 2004, 3438 posts, RR: 14
Reply 20, posted (8 years 10 months 2 weeks 1 day 19 hours ago) and read 4475 times:

How about play BINGO during the flight... lol


Next destinations, Suarabaya, beirut, paris, Accra
User currently offlineDJ738 From New Zealand, joined Jun 2005, 410 posts, RR: 1
Reply 21, posted (8 years 10 months 2 weeks 1 day 19 hours ago) and read 4465 times:

Quoting HKGKaiTak (Reply 15):
DJ already does this, the first row and I think the emergency exit rows as well are designated as "Blue Zones" which has more legroom than other seats, you pay $25 per sector extra for them.

You're quite correct. Except surcharge is $30.00. Overwing exit seats have 40" seat pitch. Front row A, B, C seats have no bulkhead in front, so HUGE amounts of leg room.

Quoting HKGKaiTak (Reply 15):
JQ has this service, I think $5 or something to hire a DVD player with screen for your flight - not sure of the details.

PacificBlue pioneered this feature in the southern hemisphere. JQ followed later. They are called digEplayers. Hire fee of $12.00. Not a DVD player - they're a hard drive unit loaded with latest release movies, TV programmes and music videos. Guests can fast forward, rewind, change movies etc at their whim.


User currently offlineANother From , joined Dec 1969, posts, RR:
Reply 22, posted (8 years 10 months 2 weeks 1 day 19 hours ago) and read 4457 times:

Quoting BCAL (Reply 18):
Advertised fares of less than �1 mysteriously becoming nearer �70 when taxes, duties, airport charges, wheelchair costs etc are added on

And charge a �100 refund fee, so they don't have to refund anything if the passenger cancels.

But seriously - how about �30 per bag for a connection between two (same company) flights - or even an interline connection.


User currently offlineBDKLEZ From Ireland, joined Jun 2005, 1735 posts, RR: 10
Reply 23, posted (8 years 10 months 2 weeks 1 day 17 hours ago) and read 4419 times:

Quoting VV701 (Reply 13):
Or perhaps pay to use the emergency exit if required?!?

EZY will be trialing this in the near future. £10 per sector if I remember correctly, but don't quote me!



Trespassers will be shot; survivors will be shot again!
User currently offlineBCAL From United Kingdom, joined Jun 2004, 3384 posts, RR: 15
Reply 24, posted (8 years 10 months 2 weeks 1 day 17 hours ago) and read 4410 times:

Quoting Soups (Reply 20):
How about play BINGO during the flight... lol

I recall reading somewhere (pprune?) that FR were considering something along the lines about in-flight bingo and that MOL was saying that the revenue would keep fares low. They would need some bouncers on their aircraft to make sure that every passenger joins in the game - those passengers who do not shell out £5 for bingo cards will be thrown off!



MOL on SRB's latest attack at BA: "It's like a little Chihuahua barking at a dying Labrador. Nobody cares."
25 Post contains images Greenjet : At least on the ground you can always go into a bar or pee against a wall in a sidestreet if really necessary. Not very social but even less so on an
26 Soups : Virgin Atlantic was charging $50 when i was flying LAX-LHR
27 Lehovec : What is your source, because this is simply not true.
28 Bond007 : Simple...customer service. Jimbo
29 GVA777 : Hey All, Thank you for all your messages so far. I was looking for a more radical approach here. If you were personally running an airline, what kind
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