New Delhi: Taking a cue from international no frill carriers like Ryanair and Easy Jet, Indian low fare carriers are targeting ancillary services to shore up revenue.
Tying up with hotels and in-flight advertising are the focus areas right now. Indian low fare carriers like SpiceJet, Air Deccan and GoAir are looking to make an easy extra buck by starting ancillary services like hotel bookings, selling on flight insurance, and advertising space.
Currently, Indian no frills airlines earn an average about 5-6 per cent of their revenue from these activities compared to 17-18 per cent earned by international carriers like Easy Jet. Carriers like SpiceJet hope to increase that to 15-20 per cent by the end of next year.
Air Deccan earns about 4 per cent of its revenue from its ancillary operations and is likely to increase it to 10 per cent next year.
Services like in-flight booking, catering and car rentals have been in operation for a while now, but carriers like GoAir and Kingfisher Airlines are thinking out of the box. They have started selling advertisement space on lockers and trays inside the aircraft, besides selling insurance and providing hotels to passengers.
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