Amadeus-Forrester report: ancillary revenue vital to travel retailers
The joint Amadeus-Forrester white paper, titled Cross-Sell Your Way to Profit,indicates that ancillary revenue will become more and more vital to travel retailers over the next five years.
Travel firms are sitting on a multi-million pound bonanza if they can find the ability to sell ancillary services, a new report suggests
The joint Amadeus-Forrester white paper, titled Cross-Sell Your Way to Profit, says ancillary service sales are expected to increase by 30% over the next five years.
This is a so far “untapped opportunity”, according to Amadeus, with wider industry revenues expected to grow by just 3% over the same period.
Director of the travel services business group at Amadeus, Marcos Isaac, says for every $1 billion in sales, around $25 million will be a ancillary service sold alongside the core flight, hotel, cruise or car hire product.
Key to rise in a retailer’s ability to grow ancillary sales will be use of tools and technology that reach the customer outside of the purchase point of the original product, Isaac says.