U.S. airlines are beefing up their online offerings as they focus more on dealing directly with fliers—and selling more than just seats.
The fast-growing list of direct online offerings by carriers ranges from luggage pick-up at home and special security lanes at the airport to designer snacks on the plane and paragliding lessons after landing.
The moves come as the industry is at a crossroads with third-party distributors such as travel agencies that sell more than 60% of U.S. airline tickets. Most distributors haven’t been offering the customized “extras” to consumers until now, focusing instead on basic fares and schedules.
“It’s as if everyone in the pizza industry only offered pepperoni and cheese,” said Jay Sorensen, head of IdeaWorks, a consulting firm specializing in ancillary revenue.
Many U.S. carriers want more control of the sales process as they increasingly bank on revenue from such perks as early boarding and extra legroom to turn profits. They also see it as a way to win brand loyalty and compete on more than just price after collecting about $8 billion in ancillary fees last year, or 6% of revenue.
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