Ancillary revenue

Ancillary revenue refers to the supplementary income generated by businesses beyond their primary products or services. In the context of the travel and hospitality industry, ancillary revenue encompasses the additional income streams that airlines, hotels, and other related businesses derive from offering extra services, add-ons, or complementary products to their customers.

This can include fees for services such as baggage handling, in-flight meals, seat upgrades, hotel amenities, and other optional enhancements. By diversifying revenue sources, businesses can optimize profitability while often providing customers with the flexibility to customize and enhance their overall experience.