Ron Goch
The Telios Group
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Airlines Look Beyond Tickets for Revenue

November 13th 2006

The airlines have become more creative with generating revenue beyond ticket sales, and they should be applauded for their creativity and resourcefulness.
 

As a frequent business traveler, I prefer the airlines develop strategies to generate revenues beyond ticket sales versus simply increasing airfares.
 

One of the first moves airlines made a few years ago was advertisements on the tray liners. Some of the airlines then began offering headsets on flights for $2. Some people laugh and some complain about the charges, but I see many headsets sold on each flight and there’s no doubt the airlines are making a lot of money from people who choose not to bring their headsets on a flight.
 

The next revenue idea was pulled from the seat pocket on each plane when the airlines began carrying air-sickness bags with advertising on them. Again, some people laugh, but consider that one airline carrier is pulling in $10 million in annual revenue from the bag advertising and other similar initiatives.
 

There’s no doubt the airlines are laughing too!
 

In the latest story I read, the airline flight attendants became upset when they were asked to distribute coupons for a chain of ice cream stores. Again, I think this is a great idea and most passengers – especially ice cream lovers like myself – would appreciate the offer extended by the airlines.
 

The lesson airlines – and all of us – can learn from this latest move by airlines is to ensure proper communication with employees (especially those expected to distribute the coupons) prior to executing the promotion.  The feedback, thoughts and ideas employees provide is priceless and will assist in creating a positive experience for all involved.
 

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Ron Goch,
The Telios Group
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