1xINTERNET and AncillaryBox lead the way to transform airline industry revenues

3 min.
Flying graphic aircraft

1xINTERNET and USA-based AncillaryBox have formed a joint venture to deliver technological innovations allowing airlines and the tourism industry to unlock the full potential of ancillary revenue streams.

What is the ancillary sector?

The airline ancillary sector refers to revenue generated by airlines from supplementary products and services beyond basic ticket sales, such as baggage fees, seat upgrades, upselling of tourism experiences, and similar.

The airline industry is characterised by tight margins and intense competition. With one way airline fares slumping by 53% since 2013, airlines are increasingly dependent upon ancillary revenue to enhance their operating margins. Ancillary revenue has soared globally to a staggering $100 billion annually. During the same period, ancillary share of global airline revenue has grown from 6% to 15%.

"CarTrawler Worldwide Estimate of Ancillary Revenue" statistics
Source: https://ideaworkscompany.com/wp-content/uploads/2022/11/Press-Release-169-Global-Estimate-2022.pdf

1xINTERNET shortens AncillaryBox time to market

AncillaryBox are leaders in advancing ancillary journeys, assisting airlines with data solutions, targeting algorithms, and APIs to achieve high-margin ancillary sales. 1xINTERNET excels in consulting on the application of cutting-edge technologies in business.

The partnership has enabled AncillaryBox to access our range of expertise to collaboratively form early concepts, rapidly advancing through to design and development of market-ready products to meet this clear need in the market. 

1xINTERNET, in collaboration with AncillaryBox, developed an application that enables airlines to offer a wide range of tours to their passengers alongside their flights. The application's unique value proposition consists of two main components:

  • A data-driven targeting algorithm that recommends the best tours for airline passengers;
  • A curated set of tours for destinations around the world.

Similar to travel agents, our application tailors its tour recommendations to different passenger types. It distinguishes between families, couples, young adults, business travellers, etc. based on passenger information. To build a comprehensive inventory of global tours, we combine multiple data sources and cleanse the data to suit the heterogeneous travel audience. 

Leveraging 1xINTERNET's extensive experience with large data sets, recommendation systems, and AI algorithms, along with the capability to manage large-scale applications, AncillaryBox successfully launched the first partner using this application within six months.

Our combined solution offers a low-risk, plug-and-play model that enables partners to deliver customised, branded ancillary experiences to their customers. Integrated seamlessly with existing travel platforms, data-driven recommendations enhance customer satisfaction and drive significant uplift in revenues.

Dohop seizes first mover advantage

An early and significant milestone was reached with the launch of partner Dohop, enhancing the travel experience for countless leisure travellers by offering a curated selection of activities, guided tours, equipment rentals, and attractions.

Screenshot from the DoHop Experiences website
Screenshot from the DoHop Booking engine

Transforming ancillary revenue strategies

The strategic alliance between 1xINTERNET and AncillaryBox marks a pivotal moment in the evolution of ancillary revenue strategies for the airline and tourism industries.

Looking ahead, the seamless integration of these advanced solutions into current travel platforms is expected to boost ancillary revenues continuously, giving airlines and tourism operators a competitive edge in a tough economic environment.

To learn how 1xINTERNET consulting services can help your business deliver end-to-end innovation, contact us today.

Share article via

Other highlights

Knowledge base

10 React use cases at 1xINTERNET

Screenshots of different websites based on React

React is one of the primary technologies in our technology stack. This article explores our React...

13 min.
Knowledge base

How to create useful AI applications

A chat between user and virtual assistant

To create useful AI applications you need to understand how AI works and how it can best be used. In...

8 min.