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© 20
09 A
mad
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IT G
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Amadeus Airline IT
Destination Content
The Next Level for Ancillary Revenue
How and when you sell ancillary items is more important than what you sell.Martin Collings, Amadeus Airline IT
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© 20
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Destination content – is it the next big thing?
Possibly… No airline has yet perfected the selling of this product
Attach rates on some airline sites are under 0.1%
Fliers either buy from airline, or when they arrive Airline knows where and when traveler is going
Airline knows who is going (family/couple/solo)
Airline knows traveler’s service preference (eco/biz)
Requires opt-in (some opt-in results > 70%)
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© 20
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A Hypothetical Example for KL…followed by the revenue projections
Scenario: Two adults spending one week in Kuala Lumpur
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© 20
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mad
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IT G
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A Hypothetical Example for KL…followed by the revenue projections
Sandakan Orangutan Rehabilitation CenterSubject
From:
To:
Dear Mr Smith,
In three weeks your flight XX123 leaves for Kuala Lumpur. If you have 8 hours free one day, a must see is this sanctuary for about 25 young and orphan Orangutans apart from 60-80 other Orangutans who roam freely in the reserve. It is the largest Orangutan sanctuary in the world.
$62 pp inc hotel pickup
Click here for many other experiences in KL starting at under $20 per person
Three Weeks Prior To Departure
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© 20
09 A
mad
eus
IT G
roup
SA
A Hypothetical Example for KL…followed by the revenue projections
Kuala Lumpur by Night Subject
From:
To:
Dear Mr Smith,
In two weeks your flight XX123 leaves for Kuala Lumpur. Other passengers of ours always speak highly of the night bazaar in Petaling Street in Kuala Lumpur’s Chinatown. This 4 hour tour also includes a traditional Malay feast.
$30 pp inc hotel pickupClick here for many other experiences in KL starting at under $20 per person
Two Weeks Prior To Departure
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© 20
09 A
mad
eus
IT G
roup
SA
A Hypothetical Example for KL…followed by the revenue projections
Fireflies Tour in TerengganuSubject
From:
To:
Dear Mr Smith,
In one week your flight XX123 leaves for Kuala Lumpur. The fireflies in Terengganu have created one of the most fascinating natural wonders in Malaysia; every night hundreds of fireflies light up these mangrove swamps with their fabulous synchronized flashing patterns.
$32 pp inc hotel pickup
Click here for many other experiences in KL starting at under $20 per person
One Week Prior To Departure
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© 20
09 A
mad
eus
IT G
roup
SA
A Hypothetical Example for KL…followed by the revenue projections
Airport transfer to and from your hotelSubject
From:
To:
Dear Mr Smith,
In two days your flight XX123 leaves for Kuala Lumpur.
To make your journey as hassle free as possible, we can offer you a two way transfer to and from your city hotel. Many other passengers also take this option to ensure their arrival in KL is as smooth as possible.
$17 per person
*this transfer example is based on a Singapore product
Click here for many other experiences in KL starting at under $20 per person
Two Days Prior To Departure
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© 20
09 A
mad
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IT G
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Potential Revenue
Orangutans $62
Night Tour $30
Fireflies $32
Hotel Transfers $17
Total (one, then two persons from PNR) $141 $282
$22.56Airline Commission (assume 8%)
Scenario: Two adults spending one week in Kuala Lumpur
Direct channel PNR’s per year 200,000
Opt-in rate 70%
- PNRs that can be targeted 140,000
Conversion Rate 2%
Annual Airline Ancillary Revenue $63,168
3,000,000
70%
2,100,000
2%
$947,520
Note: Potential revenues have not accounted for additional purchases a passenger may make when clicking through on the email, so they may be conservative estimates.
