Ancillary opportunities
CONTENTS 1. Ancillary In Airline Industry 2. Ancillary Products 3. VN s Plan For Ancillary Growth 4. Difficulties 5. Suggestions 1
1. Ancillary Services In Airline Industry
Ancillary services? Ancillary services are revenue beyond the sale of tickets as carriers search for ways to make up for lost revenue from falling ticket prices. Activities include anything from frequent flyer miles, bidding forspare seats next to you, lounge access to hotel bookings, holidays and car hire.
Ancillary services?
Ancillary services?
Ancillaries in number 2018: $100 bil
Ancillaries in number
VN
Ancillary Revenue as a % of TotalRevenue 23% 12% 6%
Key Ancillaries: FSA vslcc
Key Ancillaries: FSA vslcc
2. Ancillary Products
Ancillary opportunities \ Flight Related Ancillaries VN No. Non- Flight Related Ancillaries VN 1 Baggage Fees 1 Hotel/lodging 2 Seat Assignment 2 Travel Insurance 3 Extra legroom 3 Frequent Flyer Programs 4 Purchase Middle Seat 4 Car Rental / Parking (on airline website) 5 Exit row 5 Ground Transportation 6 Seat Plus (empty seat next to) 6 Branded merchandise 7 Upgrade 7 Advertise on host Website 8 Reservation changes 8 Travel gift vouchers 9 Refund fees 9 Theatre, Concerts, Sporting & Events Tickets 10 Duty Free 10 Foreign Currency 11 Onboard Selling (Bus, train tickets) 11 House/Car Insurance 12 Unbundled Fares 12 Dynamic Packaging 13 Meals/beverages Cruise + Flight 14 Credit card fees Golf and Spa packages 15 In-Flight Entertainment Sporting packages (F1 weekend) 16 WIFI Destination Tourism (Diving) 17 Priority boarding 18 Priority checkin 19 Priority bag tag 20 Lounge Access 21 Fast Track 22 Scratch Cards 23 Hold booking / Fare lock 24 Airport Locker Service 25 Discount Club: Annual Subscription Fee
Ref: Ryanair Bundled fare Ryanair does a great job with user experience (UX) for the bundled fare options.
Ref: JetBlue - When a seat is more than just a seat
Ref: United Airlines Discount club
Frequent Flyer Programs
Frequent Flyer Programs
AFKL List of Ancillaries by touchpoint 20
VN s Current Ancillary Products Các loại doanh thu phụ trợ (đ.v: tỷvnđ) 2017 2018 2019E 19/18 Proportion 1. A lacarte 223,6 320,1 410,3 128,2% 24,5% Hành lý 186,8 264,8 309,0 116,7% 18,4% Optiontown & Nâng hạng EMDA 35,5 54,0 60,0 111,1% 3,6% Chọn chỗ trước 40,0 2,4% Dịch vụ đặc biệt 1,3 1,3 1,3 100,0% 0,1% 2. Hoa hồng từ việc bán sản phẩm 4,5 7,6 168,9% 0,5% VNA Holiday (hotel) 0,6 0,8 133,3% 0,0% Bảo hiểm 0,9 0,9 100,0% 0,1% Bán hàng miễn thuế 3,0 5,9 196,7% 0,4% 3. Chương trình khách hàng thường xuyên 229,3 302,6 326,2 107,8% 19,5% Doanh thu trả thưởng từ đối tác HK 32,6 36,6 37,0 101,1% 2,2% Doanh thu cộng dặm từ đối tác HK 43,1 47,5 48,2 101,5% 2,9% Doanh thu bán dặm cho đối tác ngoài hàng không 153,6 218,5 241,0 110,3% 14,4% 4. Quảng cáo (Heritage) 173,8 253,9 186,0 73,3% 11,1% Ấn phẩm 145,9 143,1 118,0 82,5% 7,0% TVC 11,8 91,5 45,0 49,2% 2,7% Sản phẩm khác 16,1 19,3 23,0 119,2% 1,4% 5. Phí hoàn hủy đổi 726,0 745,0 745,0 100,0% 44,5% Tổng doanh thu phụ trợ 1.352,7 1.626,1 1.675,1 103,0% 100,0% Doanh thu phụ trợ trung bình trên đầu khách (đ.v: VNĐ) 66.035 80.434 82.858 103,0% % so tỷ trọng doanh thu hành khách của VN (DTFlown) 2,7% 2,9% 2,7%
Upgrade Travel Option (UTo) 2019E(*) = 45 bil VND(117% YoY)
3. VN s Plan For Ancillary Growth
Ref:AFKL 32 Source: I-share
Ancillary plan is open for group discussion No. Flight Related Ancillaries No. Non- Flight Related Ancillaries 1 Baggage Fees 1 Hotel/lodging 2 Seat Assignment 2 Travel Insurance 3 Extra legroom 3 Frequent Flyer Programs 4 Purchase Middle Seat 4 Car Rental / Parking (on airline website) 5 Exit row 5 Ground Transportation 6 Seat Plus (empty seat next to) 6 Branded merchandise 7 Upgrade 7 Advertise on host Website 8 Reservation changes 8 Travel gift vouchers 9 Refund fees 9 Theatre, Concerts, Sporting & Events Tickets 10 Duty Free 10 Foreign Currency 11 Onboard Selling (Bus, train tickets) 11 House/Car Insurance 12 Unbundled Fares 12 Dynamic Packaging 13 Meals/beverages Cruise + Flight 14 Credit card fees Golf and Spa packages 15 In-Flight Entertainment Sporting packages (F1 weekend) 16 WIFI Destination Tourism (Diving) 17 Priority boarding 18 Priority checkin 19 Priority bag tag 20 Lounge Access 21 Fast Track 22 Scratch Cards 23 Hold booking / Fare lock 24 Airport Locker Service 25 Discount Club: Annual Subscription Fee
4. Các khó khăn vướng mắc trong triển khai Hạn chế về nguồn lực, Công nghệ, Kết nối hệ thống. Chưa có đơn vị chuyên trách nghiên cứu tổng thể, điều phối chung Quy trình kiểm soát, thanh toán Hạn chế kênh bán, quảng cáo, truyền thông
5. Một số kiến nghị Định hướng, chỉ đạo của Lãnh đạo Tập trung nguồn lực vào đâu (third party?) Mô hình tổ chức Phân công nhiệm vụ Đoàn ra học hỏi các hãng (AF, SU, KE, NH).
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