A/B Testing Ancillary Offers For Airlines. Increase Revenue Per Seat By 19 Euros?

By Hélène Dubos | Technology

Jun 06

Airline ancillary sales have tripled in value from $22.6b to 2010 to $67.4b in 2016.

Automated A/B testing of ancillary offers enables airlines to maximize their revenue opportunities.

In this blog post we’ll show how airlines can use the unique real-time data gathering characteristics of the ConztanzONE platform – along with third-part A/B software like Adobe – to revolutionize their ancillary sales.

Key takeaways from this blog post:

– Frost & Sullivan estimate an extra 19 euros per seat with ancillary sales.
– Alaska Airlines experience 12% increase in upsell with A/B testing.
– ConztanzONE slashes implementation timescale and cost.

 

Ancillary means profit for airlines-min

Win a bigger slice of a $67b market with A/B testing and real-time ancillary offers.

 

Creating personalized real-time ancillary offers.

Without smart & agile data delivered from multiple source in real-time, ancillary marketing can be a blunt instrument.

To be successful, any ancillary offer – whether A/B tested or not – needs to be both timely and relevant:

Timely in that the upsell is offered at the right part of the journey process. For example, don’t offer a discount for extra luggage when the customer is already on the way to the airport.

Relevant in that the offer makes sense to the passenger. For example, if you have rented the customer a car at the airport, don’t offer a rail discount from the airport to the city center.

 

Table: Key upsell opportunities for airlines.

Seat Lounge access Extra luggage
Luggage WIFI Parking
Meals Car Transfers
Insurance Hotel

 

A/B testing takes your ancillary business to the next level.

Marketers and IT teams can choose from a wide variety of A/B testing tools. From cloud-based, low-cost tools like Maxymizely through to leading enterprise offerings like Adobe target or Maxymiser from Oracle.

Oracle have a case study about how UK low cost carrier FlyBe used Maxymiser as part of a program which increased bookings by 6.9%, generating £8.5m ($10.9m) in incremental annual revenue.

Of course the success of any A/B testing initiative is the quality of data that the system is using. And that’s where the ConztanzONE platform gives airlines a distinct advantage, no matter which A/B testing software they choose.

 

Oracle Maxymiser. Air Alaska highlights.– 70% completed purchases with a car rental booking after seeing the optimized experience.
– 12% increase in upsell.  

– 7% uplift in conversions on weekdays.

– 17% uplift in conversions on weekends.

Source: Oracle.

 

Integrate any data, from anywhere, with the ConztanzONE platform.

ConztanzONE is a completely agnostic, cloud-based platform for connecting and integrating data from internal siloed systems (PSS, DCS, CRM, etc) through to partner/external systems.

As such, ConztanzONE unlocks the full potential of data.

We refer to our data gathering capabilities as 360° Insights. As the slide below shows, ConztanzONE doesn’t just gather data … it also enables your technology to output the appropriate ancillary offers for each customer, with the best timing and using the customer’s preferred channel, i.e. in-app, email, SMS or Facebook Messenger.

 

 

Table. Key characteristics of ConztanzONE.– Manage and unify data sources

– Empower business applications

– Provide real-time insights on events and travel context

– Gain data control and agility

– Reduce integration costs

– Help merchandise & personalise  

 

Get the ConztanzONE ‘Connect’ presentation.

We’ve created an executive summary presentation showing how ConztanzONE links any data, anywhere. To download your copy, please leave your email address below.

 

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