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Centre for Asia Pacific Aviation

Revenues from ancillary services an underdeveloped area in Indian aviation market

76% of Full Service Carrier(FSC) passengers and just under 79% of Low Cost Carrier (LCC) passengers in the Indian domestic aviation market were extremely, perhaps surprisingly, prepared to pay for in-flight catering if…

76% of Full Service Carrier(FSC) passengers and just under 79% of Low Cost Carrier (LCC) passengers in the Indian domestic aviation market were extremely, perhaps surprisingly, prepared to pay for in-flight catering if traveling on an LCC according to a new survey by the Centre for Asia Pacific Aviation. Only 29% of FSC and 21% of LCC passengers expressed a willingness to pay for LCC in-flight entertainment.

In regard to accommodation services, less than 7% of surveyed FSC and LCC passengers had arranged accommodation using the airline’s website.

Nearly 63% of FSC buyers used a travel agent to arrange accommodation, virtually the same as LCC buyers (nearly 64%).

These responses would draw to the conclusion that non-ticket revenues represent a largely untapped revenue potential for Indian airlines. Furthermore, as retail opportunities definitely exist in the Indian aviation sector (see Part 4 of this survey), it is logical to assume that airlines could also look at in-flight sales as an additional source of ancillary revenue.

These areas of activity could forseeably play a role in returning some LCCs to profitability earlier than expected.

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Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

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