Liu, Honglin; Abdullah, Nawal Hanim Bin i; Lee, Shin Yiing
A icle
A e iew o ancilla y se ices in he ai line indus y
Cogen Business & Managemen
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Sugges ed Ci a ion: Liu, Honglin; Abdullah, Nawal Hanim Bin i; Lee, Shin Yiing (2024) : A e iew o
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A e iew o ancilla y se ices in he ai line
indus y
Honglin Liu, Nawal Hanim Bin i Abdullah & Shin Yiing Lee
To ci e his a icle: Honglin Liu, Nawal Hanim Bin i Abdullah & Shin Yiing Lee (2024) A e iew o
ancilla y se ices in he ai line indus y, Cogen Business & Managemen , 11:1, 2322018, DOI:
10.1080/23311975.2024.2322018
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Cogen Business & ManageMen
2024, VoL. 11, no. 1, 2322018
A e iew o ancilla y se ices in he ai line indus y
Honglin Liu, Nawal Hanim Bin i Abdullah and Shin Yiing Lee
school o Business and economics, uni e si i Pu a Malaysia, selango , Malaysia
ABSTRACT
The signi icance o ancilla y se ices wi hin he ai line indus y is p og essi ely gaining
p ominence. As such, esea ch on ai lines’ ancilla y se ices has con inuously g own.
The p ima y objec i e o his esea ch a icle is o p o ide a e iew o ancilla y se ices
on passenge s’ willingness o pay and he pe sonalized p icing wi hin he ai line
indus y, achie ed h ough he analysis o published schola ly wo ks. The examina ion
o published pape s has been conduc ed wi h di e se c i e ia, including esea ch
me hodologies, analy ical pe spec i es, s a is ical me hodologies, hema ic co e age,
echnological dimensions, au ho ship, and geog aphical o igins. The conclusions sugges
a p omising u u e ega ding bo h ai lines’ ancilla y se ice applica ions and esea ch in
his a ea. The mos c ucial limi a ion s ems om selec ing wo ks subjec o examina ion
as he analysis deal wi h willingness o pu chase and pe sonalisa ion p icing ield
pape s. Addi ionally, he selec ed egion has no been widely co e ed. None heless, his
a icle can po en ially be aluable o esea che s and ai line manage s as i sheds ligh
on eme ging ends wi hin bo h domains. These ends pe ain no only o e ol ing
echnologies hemsel es bu also o he no el applica ions he eo .
1. In oduc ion
The a ia ion sec o s ands as a pi o al global en e p ise, acili a ing essen ial linkages among indi iduals
and socie ies ac oss he globe. Wi h i s expansi e each spanning con inen s, i enhances he e icacy o
a el p ocesses, he eby os e ing g ea e e iciency in global mobili y. Howe e , he a ia ion sec o is
unable o o e come i s low p o i abili y (Ozmec-Ban e al., 2022; Song & Lee, 2020) despi e playing a
signi ican ole in he ad ancemen o he wo ld economy. This phenomenon is p ecipi a ed by se e al
in e wined ac o s, such as diminished e enue yields om icke sales, in ensi ied compe i ion ega d-
ing base a es, he ‘unbundling’ app oach espoused by low-cos ca ie s (LCCs), and he p e alence o
online a e compa ison websi es (O’Connell, 2011). The e o e, inding new sou ces o e enue g ow h o
ca ie s is becoming inc easingly impo an .
Despi e hese challenges, encou aging indica ions su aced in he Uni ed S a es in 2015 (Song & Lee,
2020). Wa nock-Smi h e al. (2017) asc ibed he enhanced inancial e icacy o supplemen a y e enues
due o hei obse a ion o a posi i e co ela ion be ween he ope a ing ma gins o ca ie s and he
sha e o hei o e all e enue gene a ed by ancilla y sales. Ancilla y e enues, deno ed as “non- icke
e enues” (Wi me e al., 2012), ha e p og essi ely become he as es g owing e enue ca ego y (Cen e
o Asian Paci ic A ia ion (CAPA), 2014). On a global scale, ai line ancilla y e enues expe ienced a signi -
ican su ge om $2.5 billion in 2007 o $38.1 billion in 2014. Implemen ing new se ice ees can po en-
ially ampli y e enues while simul aneously cu bing cos s. Fo ins ance, he imposi ion o checked
baggage ees can educe he olume o held luggage, he eby a enua ing he associa ed handling ees
ha he ai line mus bea (de Wi & Zuidbe g, 2012). Waguespack and Rhoades (2014) highligh ed he
bu geoning impo ance o baggage ees o Ame ican ai lines, no ing he d ama ic inc ease in baggage
ee e enue om 2007 o 2012. To illus a e, du ing hese i e yea s, Del a Ai lines and U.S. Ai ways saw
© 2024 he au ho (s). Published by in o ma uK Limi ed, ading as aylo & F ancis g oup
CONTACT nawal Hanim Bin i abdullah [email p o ec ed].my school o Business and economics, uni e si i Pu a Malaysia, 43400
selango , Malaysia.
h ps://doi.o g/10.1080/23311975.2024.2322018
his is an open access a icle dis ibu ed unde he e ms o he C ea i e Commons a ibu ion License (h p://c ea i ecommons.o g/licenses/by/4.0/), which
pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed. he e ms on which his a icle has been
published allow he pos ing o he accep ed Manusc ip in a eposi o y by he au ho (s) o wi h hei consen .
ARTICLE HISTORY
Recei ed 21 No embe
2023
Re ised 14 Feb ua y 2024
Accep ed 16 Feb ua y 2024
REVIEWING EDITOR
Kaou he Kooli;
Bou nemou h Uni e si y;
Uni ed Kingdom o G ea
B i ain and No he n I eland
KEYWORDS
Ancilla y se ice; ai lines
willingness o pay; p icing
s a egy; unbundling;
ancilla y e enue
SUBJECTS
Ma ke ing; Managemen
and T anspo ; Se ice
Ope a ions Managemen ;
Ae ospace & Ai T anspo
Indus ies
MARKETING | REVIEW ARTICLE
2 H. LIU ETAL.
a ise in e enue om baggage ees by 796 and 1760%, espec i ely. Ancilla y e enues ha e become
in eg al o ai line accoun s ollowing he emendous g ow h du ing he pas ew yea s (O’Connell &
Wa nock-Smi h, 2013).
In he p e ious decade, ai lines ha e subs an ially enhanced hei ancilla y e enues by adop ing wo key
s a egies: ‘unbundling’ and in oducing inno a i e p oduc s (Ce egei o, 2021; Ma e na & Tomo á, 2016; Sil a de
Ma os e al., 2022). The e m ‘unbundling’ deno es sepa a ely cha ging o p oduc s o se ices adi ionally
included in he base ai a e, such as checked baggage (A am, 2017; Waguespack, 2018). No ably, baggage- ela ed
ees inc eased i e old be ween 2007 and 2010, as majo Ame ican ne wo k ca ie s began imposing cha ges on
domes ic a elle s o he i s and second checked bags (DOT, 2016). These baggage ees cu en ly con ibu e
mo e han $1 billion annually o Ame ican Ai lines alone, cons i u ing app oxima ely 2 o 4% o icke e enue
o majo Ame ican ne wo k ca ie s. In agg ega e, ancilla y e enues ha e expe ienced a h ee old inc ease o e
he pas decade, su ging om 3 o 8% o he o al e enue (S alnake e al., 2016).
Ai lines consis en ly s i e o maximise he po en ial e enue om exis ing sou ces (Abdella e al.,
2019; Bozogáň & Hu ná, 2020; Klislina & Wachidin Widjaja, 2020; Pa ise, 2018; Se ano & Kazda, 2020)
and cul i a e new e enue s eams h ough u he unbundling - esul ing in he de elopmen o new
p oduc s and se ices (Cui e al., 2018; Rounci ell e al., 2018; Shugan e al., 2017). The p icing o ancil-
la y se ices necessi a es a delica e balancing ac , op imising he po en ial o e enue inc ease wi hou
causing a de imen al decline in base icke sales (Silling, 2019; Zhao e al., 2021). A p e ailing end in
he ai line indus y in ol es ob usca ing ancilla y e enue inc eases wi hin inc easingly complex p oduc s
o o e ing hese no el ancilla y p oduc s ee o cha ge o p e e ed o eli e cus ome s (Bachwich &
Wi man, 2017; Ga ow e al., 2012). Al hough ancilla y e enue plays a pi o al ole in mode n ai line
ope a ions, i is a no el e enue s eam (Bockelie & Belobaba, 2017; Boin e al., 2017; Kosonen, 2020;
Zhao e al., 2021). Hence, gaining deepe insigh s in o he consume s’ willingness o pay on ancilla y
se ices and he o mula ion o p icing s a egies by ai line companies holds conside able signi icance o
he sus ained ad ancemen o he b oade a ia ion sec o .
The p ima y aim o his a icle is o conduc a comp ehensi e li e a u e e iew on in eg a ing ai line
ancilla y se ices, wi h a speci ic emphasis on publica ions abou he willingness o pay (WTP) o such
se ices and pe sonalised p icing s a egies o ancilla y o e ings. To achie e his objec i e, an ex ensi e
bibliog aphic analysis was unde aken o iden i y, ca ego ize, disce n, e alua e, and sys ema ically p esen
ele an scien i ic pape s sou ced om no able publica ions. Th ough his sys ema ic li e a u e e iew,
he a icle sheds ligh on he con empo a y ends, insigh s, and de elopmen s su ounding inco po a -
ing ancilla y se ices in he ai line indus y’s p icing s a egies.
The p esen a icle is o ganised as ollows: Sec ion 1 in oduces he con ex and mo i a ion behind
he in es iga ion o ancilla y se ices wi hin he amewo k. Subsequen ly, Sec ion 2 o e s a comp ehen-
si e amewo k o classi ying ancilla y se ices, accompanied by an analysis o he p e ailing ends in
hei implemen a ion, p esen ing a de ailed exposi ion o ancilla y se ices’ de elopmen s a us in he
a ia ion indus y. Sec ion 3 in oduces me hodology applied in his a icle.
In pu sui o a comp ehensi e unde s anding, Sec ion 4 ho oughly examines seminal s udies conce n-
ing WTP assessmen s o ancilla y se ices, he dynamic p icing s a egies o hese se ices, and he
inco po a ion o pe sonalized concep s. Each o hese hemes is sc u inized independen ly o disce n
hei ele ance and signi icance wi hin he con ex o ancilla y se ice managemen .
Finally, Sec ion 5 culmina es he e iew by succinc ly summa ising he key indings de i ed om he
sec ions. D awing upon hese indings, his sec ion also o e s aluable ecommenda ions o u u e
esea ch endea ou s o ill gaps and ex end he knowledge o ancilla y se ices. Th ough his academic
endea ou , he a icle aspi es o con ibu e o he b oade discou se su ounding ancilla y se ice op i-
misa ion and enhancing ancilla y se ice e enue p ac ices in he a ia ion indus y.
2.Theo e ical amewo k
2.1 Ancilla y se ice
The e m "ancilla y," as de ined, deno es some hing ha is "seconda y o supplemen a y" (G ön oos,
2007). In he con ex o ai line se ices, a se ice is an adjunc o he co e business se ice, ypically
COGENT BUSINESS & MANAGEMENT 3
included in he base a e (Bozogáň & Hu ná, 2020). The a ia ion indus y’s co e se ice e ol es a ound
anspo ing passenge s om hei depa u e poin o hei in ended des ina ion (A am, 2017; Bozogáň
& Hu ná, 2020; Tsa a akis e al., 2018). Ancilla y se ices encompass o e ings beyond his undamen al
anspo a ion se ice, comp ising p e e ed sea ing, booking enhancemen s, p io i y boa ding, and ood
and be e age op ions (Mo osan, 2014). These supplemen a y elemen s a e o en conside ed he ounda-
ional componen s o he o e all se ice package, de ining and ende ing i compe i i e (Bozogáň &
Hu ná, 2020). Fu he mo e, hese addi ional se ices cons i u e he p incipal sou ces o ancilla y ees o
e enue, a phenomenon unde sco ed by Ga ow e al. (2012) h ough hei analysis o p oduc de und-
ing ends. In summa y, ai line ancilla y se ices enhance he cus ome expe ience by o e ing a pe son-
alised ouch and concu en ly con ibu e o ai lines’ augmen ed e enue s eams.
In economic e ms, and as ou lined in he li e a u e, ai line ancilla y se ices a e akin o add-on p od-
uc s (Bockelie & Belobaba, 2017). These op ional se ices and p oduc s only add alue when pu chased
wi h a p ima y p oduc (Lal & Ma u es, 1994). They a e supplemen a y o e ings ied o ai lines’ co e
business se ices (Bozogáň & Hu ná, 2020). Fo ins ance, an op ional bag check se ice only adds alue
o a passenge i pu chased along wi h a leading se ice, such as an ai icke .
Va ious de ini ions o ai line ancilla y se ice e enue ha e been p oposed. Acco ding o Holloway
(2008), ancilla y se ice ees can be seen as sepa a ing a ious componen s o he adi ional ai line
p oduc and imposing cha ges o ea u es o me ly bundled in he icke p ice o limi ed o passenge s
in p emium cabins. Vasigh e al. (2012) posi ha ancilla y e enue e e s o he income gene a ed by an
ai line h ough non- icke sou ces, which se e o enhance he ai line’s se ices o p oduc o e ings, such
as luggage ees o onboa d se ices. Acco ding o he de ini ion om IdeaWo ks Company, ancilla y
e enues a e he addi ional e enue gene a ed beyond he p ima y icke sales. These p o i s can be
ob ained om di ec sales o passenge s and indi ec ly om he o e all a el expe ience o hi d-pa y
engagemen . The ees a e only acc ued when passenge s choose o use he se ice.
2.2 Types o ancilla y se ice
To unde s and ancilla y se ices comp ehensi ely, i is impe a i e o es ablish a clea de ini ion and elu-
cida e hei ope a ional mechanisms (Bozogáň & Hu ná, 2020). Among he ea lies o ms o ancilla y
e enue gene a ion is he sale o du y- ee p oduc s du ing ligh s, which, o decades, ep esen ed he
sole means h ough which ai lines could augmen hei e enues om passenge s while in- ligh
(O’Connell & Williams, 2011). Beyond du y- ee p oduc sales, ano he example o ancilla y se ices
includes wha is commonly e e ed o as penal ies, such as ees o excess baggage, ligh cancella ions,
o ligh changes (Ozmec-Ban e al., 2022).
The classi ica ion o ancilla y se ices has p omp ed di e ing opinions among a ious s udies. The
Amadeus Yea book o Ancilla y Re enues (2011), which is widely used by expe s in he a ia ion sec o ,
delinea ed ou dis inc classi ica ions o ancilla y se ices p e alen in he indus y: (1) The e m "a la
ca e" e e s o addi ional se ices o e ed du ing a ip ha equi es a sepa a e paymen . These se ices
may include onboa d ood and be e age op ions, checked-in bags, assigned sea s, p io i y check-in,
access o ai po lounges, onboa d en e ainmen , o In e ne access. (2) The commission-based app oach
in ol es c oss-selling endea ou s, such as o e ing ho el accommoda ions, a el insu ance, and ca en al
se ices. (3) The equen lye s p og am allows companies o ob ain ai line miles ha can be used o
ma ke ing ini ia i es, p omo ional campaigns, o loyal y-based ma ke ing s a egies. (4) Ad e ising gen-
e a es e enue h ough a ious channels, including he in ligh magazine and ou doo and indoo ad e -
ising spaces wi hin ai c a , ai line lounges, and ai po s. These classi ica ions se e as aluable amewo ks
o unde s anding he mul i ace ed landscape o ancilla y se ices in he a ia ion indus y. Howe e ,
some schola s p opose ha ancilla y se ices gene a e e enues h ough wo unique p ac ices: he dis-
man ling o he a e mechanism, which enables he ca ie o cha ge o each ligh p oduc , and he
c oss-selling o hi d-pa y a el by-p oduc s h ough Bol on hype links om an ai line’s websi e
(O’Connell, 2011). Figu e 1 di ides he ligh p oduc s in o h ee dis inc ca ego ies; excep o he co e
p oduc s, all he es a e ancilla y se ice p oduc s, commonly ega ded as he componen s o he se -
ice package ha delinea e and enhance i s compe i i eness (Zhou e al., 2020).
4 H. LIU ETAL.
A cad e o esea che s has c i ically e alua ed he shi owa ds he unbundling o a ia ion ancilla y
p oduc s in he Ame ican ai line indus y and has pu o h a ypology ha seg ega es hese se ices
in o h ee key ca ego ies, o ganised ch onologically o his o ically. Fi s , he "mos es ablished ees" ca -
ego y comp ises cha ges ha ha e exis ed since he e a p eceding de egula ion and he ise o low-cos
ca ie s, including ees o se ices such as icke exchange, he accommoda ion o pe s on boa d, and
p o isions o unaccompanied mino s. The second ca ego y, " ees o se ices ha used o be ee,"
includes se ices ha we e ini ially o e ed ee o cos bu , in he wake o unbundling, a e now cha ge-
able. This ca ego y includes luggage check-in, in- ligh meals, and sea selec ion. Las ly, he hi d ca e-
go y, " ees on newly in oduced se ices," pe ains o ees associa ed wi h in oducing p e iously
una ailable se ices and o which consume demand migh be somewha es ic ed, such as p emium
dinne s and onboa d Wi-Fi (Ga ow e al., 2012). Fu he mo e, some esea che s ha e p oposed a di ision
o supplemen a y incomes in o wo sepa a e ca ego ies: a la ca e ancilla ies, which include indi idual
i ems ha a e no g ouped, as well as puni i e cha ges and hi d-pa y ancilla y s eams. The la e
includes e enues sou ced h ough commission-based incen i es, equen lye p og ams, and ad e is-
ing (Wa nock-Smi h e al., 2017).
IdeaWo ks Company o e ed a mo e nuanced de ini ion o ancilla y e enue, ca ego ised in o a
la ca e ea u es, commission-based p oduc s, equen lie ac i i ies, ad e ising acili a ed by he
ai line, and he a la ca e componen s linked o a a e o p oduc bundle. The de ails a e shown in
Table 1.
Mo eo e , i has been a gued by ce ain schola s ha hese se ices could ha e a di ec connec-
ion o he ligh i sel , encompassing aspec s like baggage handling, sea ing upg ades, o meal
op ions. Al e na i ely, hese se ices may be in eg a ed in o he passenge ’s b oade a el a ange-
men s, which could in ol e booking ho el accommoda ions, en al ca s, o engaging in des ina ion
ac i i ies. Addi ionally, hese se ices may be seen as a componen o he passenge ’s ongoing asso-
cia ion wi h he ai line, such as using a co-b anded c edi ca d (Bockelie & Belobaba, 2017), as shown
in Table 2.
2.3 Global e olu ion o ancilla y se ices
The incep ion o ancilla y se ices wi hin he a ia ion indus y can be aced back o he 1940s and 50s
when ai lines ini ia ed he p o ision o basic in- ligh ameni ies such as meals, be e ages, and blanke s.
These ameni ies we e ini ially included in he icke p ice o en ich he cus ome ’s a el expe ience
(Ga ow e al., 2012). Wi h he g ow h o he ai line indus y and in ensi ying compe i ion, ai lines began
o o e mo e luxu ious ameni ies, such as li e T.V. and pe sonal mo ie selec ions, as a me hod o di e -
en ia ion (Ga ow e al., 2012).
The de egula ion o he Ame ican ai line ma ke in he la e 1970s was a u ning poin in he e olu ion
o ancilla y se ices. This de egula ion ga e ai lines mo e la i ude in es ablishing a es and ou es,
Figu e 1. Map o co e ai line p oduc s (non- e enue) and e enue-p oducing p oduc s (sou ce: o’Connell).
COGENT BUSINESS & MANAGEMENT 5
os e ing inc eased compe i ion and p ice wa s (Ga ow e al., 2012). Consequen ly, ai lines explo ed
di e si ying e enue s eams, educing eliance on icke sales.
In con adis inc ion o he app oach, low-cos ai lines adop ed an unbundling s a egy, allowing
passenge s o selec ancilla y se ices based on hei p e e ences and equi emen s (Ozmec-Ban e al.,
2022). By unbundling se ices, hese ai lines allow cus ome s o ailo hei a el expe ience, op ing
o speci ic ameni ies o ex as as desi ed and ailo ing hei o e all a el cos s acco dingly. The ise
o low-cos ca ie s (LCCs) like Sou hwes Ai lines in Ame ica and Ryanai in Eu ope in he 1990s was
ins umen al in ad ancing he accep ance o ancilla y se ices as addi ional e enue sou ces. These
ca ie s adop ed a business model ocusing on ope a ional cos minimisa ion and a la ca e se ices
a an addi ional ee (de Wi & Zuidbe g, 2012). This se ice unbundling enabled LCCs o o e lowe
base a es, a ac ing p ice-sensi i e a elle s (Bozogáň & Hu ná, 2020; de Wi & Zuidbe g, 2012).
Low-cos ai lines employ a ious s a egies, anging om p ice mechanisms o ex ensi e p omo ional
e o s, o educe icke p ices and a ac cus ome in e es . Consequen ly, LCCs a e keen on o e ing
ancilla y p oduc s and se ices ha di ec ly engage passenge s. These may include sea selec ion,
baggage se ices, p io i y passes, ood and be e age choices, and in- ligh en e ainmen
(Wo asuwanna ak, 2023).
The eme gence o low-cos ca ie s (LCCs) has ans o med he compe i i e landscape wi hin libe al-
ized ma ke s (O’Connell & Williams, 2005). This de elopmen has e olu ionized he con en ional busi-
ness model o ai lines, signi ican ly impac ing he p o ision o ancilla y se ices ac oss he a ia ion
indus y. T adi ional ai lines ha e adop ed he p ac ice o cha ging o supplemen a y se ices, mi o ing
he s a egies employed by low-cos ca ie s (Babić e al., 2019). The p oli e a ion o cha ged in- ligh
se ices among adi ional ca ie s exempli ies he ongoing p ocess o hyb idiza ion, indica i e o a g ad-
ual ansi ion owa ds a hyb id business model (Tomo á & Ma e na, 2017).
A he same ime he adi ional low-cos business model has p og essi ely changed and LCC ca ie s
ha e mo ed on bo h sides o he spec um. On he one hand, his has led o he eme gence o he
Table 1. De ini ion o ancilla y e enue.
Ca ego ies De ini ion ac i i ies
a la Ca e Fea u es hese a e he hings on he ancilla y e enue
menu. hey a e he ex as ha cus ome s
can add o hei ligh expe ience.
1) selling ood and d inks on boa d.
2) Ca ying bags and ex a luggage.
3) Being gi en sea s o be e sea s wi hin he same cabin.
4) Being able o make ese a ions o e he phone.
5) Ha ing o pay ex a o c edi ca d paymen s.
6) Check-in and checking i s .
7) he p os o ea ly boa ding
8) en e ainmen equipmen on boa d.
9) access o he in e ne wi elessly.
Commission-Based
P oduc s
he commission-based ca ego y is p ima ily
ea ned by ai lines on sales o hi d-pa y
p oduc s
1) Ho el accommoda ions.
2) Ca en als.
3) a el insu ance.
4) Du y- ee and consume p oduc s onboa d ai c a .
F equen Flie
P og ams
F equen lye miles and poin s a e sold o
p og am pa ne s.
he selling o miles o poin s o pa ne s in he p og am, such as ca
en al and ho el chains, co-b anded c edi ca ds, in e ne shopping
malls, s o es, and communica ion se ices.
ad e ising sold by
he ai line
his is a new a ea o any ad e ising ela ed
o passenge a el.
1) he money made om he magazine in ai ime.
2) ad e isemen s sold on o in planes, landing docks, ga e a eas,
and ai po lounges.
3) Ma ke goods and samples can be placed o a ee.
Fa e o P oduc
Bundle
ai lines may alloca e a po ion o he p ice
associa ed wi h an economy class bundle
o p oduc bundle as ancilla y e enue.
Checked baggage, ea ly boa ding, and ex a leg oom o sea ing.
Table 2. ancilla y se ice ca ego iza ion.
i ine a y ip Rela ionship
Baggage Ho els Loyal y
sea ing Ren al ca s Co-b anded c edi ca d
Meals Des ina ion ac i i ies subsc ip ion clubs
P io i y boa ding
Lounge access
6 H. LIU ETAL.
ul a-low-cos business model (ULCC), in which ca ie s cha ge o all aspec s o a el o he han ai a es,
by adop ing lowe cos s han low-cos ca ie s while gene a ing ancilla y e enues h ough agg essi e
a e spli ing (Bachwich & Wi man, 2017). On he o he hand, some ca ie s ha e begun a ‘hyb idiza ion’
p ocess, o e ing se ices adi ionally p o ided by ull-se ice ca ie s (FSCs) he e o e hyb idizing hei
business models (Chiamba e o & Combe, 2023; Co bo, 2017; Mo lo i e al., 2020). Fo ins ance, hyb id-
ized low-cos ai lines compensa e cus ome s o highe icke p ices by o e ing addi ional ai po o
o he ancilla y se ices (Tomo á & Ma e na, 2017). P esen ly, he ise o hyb id models diminishes he
s a k con as s be ween LCCs and FSCs (Mo lo i e al., 2020). This ans o ma i e shi also expands he
po en ial o he e olu ion o ai line ancilla y se ices.
Digi al echnology and e-comme ce acili a ed he p oli e a ion o ai line ancilla y se ices. Online
booking pla o ms and mobile applica ions ha e empowe ed ai lines o o e pe sonalised ancilla y
se ices h ough a ge ed o e s and dynamic p icing, acknowledging he In e ne ’s ole as a e enue
gene a o (O’Connell & Wa nock-Smi h, 2013). Addi ionally, digi al channels ha e allowed ai lines o
ga he aluable cus ome da a, ailo ing ancilla y se ices acco ding o indi idual p e e ences and
a el habi s.
The ai line ancilla y se ices ma ke cu en ly ea u es a ious p oduc s and se ices ca e ing o
di e se cus ome segmen s and p e e ences. Fu he mo e, he ascension o ancilla y se ices has
s imula ed he c ea ion o no el business models and pa ne ships wi hin he ai line indus y. Fo
ins ance, ai lines a e inc easingly pa ne ing wi h ho els, ca en al companies, and o he a el se -
ice p o ide s o o e comp ehensi e packages and one-s op a el solu ions, imp o ing he o e all
cus ome expe ience and gene a ing addi ional e enue (Tie nan e al., 2021). As he indus y p o-
g esses, he ange and complexi y o ancilla y se ices a e expec ed o expand u he , d i en by
echnological ad ances, shi ing cus ome p e e ences, and he pe pe ual ques o compe i i e di -
e en ia ion and e enue di e si ica ion.
3. Me hodology
The sea ch p ocess in ol ed he u ilisa ion o pe inen keywo ds di ec ly ela ed o he add essed p ob-
lem in he a icle, such as “ai lines,” "ai lines ancilla ies," "ai lines add-ons," " anspo se ice," " anspo a-
ion," and "p icing," among o he s. The chosen empo al scope o he s udy encompassed he p eceding
eigh yea s. This decision was p ima ily based on he ecogni ion ha ai lines commenced o e ing a
di e se ange o ancilla y se ices only ecen ly, ende ing he pas eigh yea s a c ucial pe iod o unde -
s anding he e olu ion and impac o hese se ices wi hin he a ia ion indus y. To ensu e a comp e-
hensi e and igo ous analysis, da abases such as Web o Science and Scopus we e used, enabling he
selec ion o ele an subjec a eas closely aligned wi h he esea ch opic.
Ini ially, 120 esea ch pape s we e accessed, and subsequen sc eening iden i ied 64 pape s deemed
ge mane o he s udy’s pa ame e s o e a span o en yea s. The selec ion c i e ia we e applied o ensu e
cong uence wi h he esea ch opic and objec i es.
The o ganiza ion o he e ie ed a icles in ol ed a mul i ace ed app oach inco po a ing a ious c i-
e ia such as au ho ship, da a collec ion me hod, ype o ancilla y se ices, egion o ai line, in luencing
ac o s and indings. This sys ema ic o ganiza ion acili a ed a comp ehensi e examina ion o he li e a-
u e, acili a ing he iden i ica ion o key hemes, ends, and esea ch lacunae wi hin he domain o
ancilla y se ices in he ai line indus y.
4. Re iew o exis ing li e a u e
The e iewed s udies a e sys ema ically classi ied in o wo dis inc esea ch ca ego ies, each abou
a speci ic aspec o ancilla y se ices in he ai line indus y: (1) WTP o ancilla ies and (2) pe son-
alised ancilla ies p icing. Table 3 and Table 4 p esen a summa y o s udies on he WTP o ancilla y
se ices and p icing s a egies, espec i ely, encompassing key de ails such as he au ho (s), da a
collec ion me hodology, ypes o ancilla y se ices in es iga ed, egions o ai lines unde s udy,
an eceden s o a ibu es conside ed, as well as he no ewo hy indings de i ed om each espec-
i e esea ch pape .
COGENT BUSINESS & MANAGEMENT 7
Table 3. Re iewing s udies on he willingness o pay o ancilla y se ices.
au ho Da a collec ion ancilla y se ice Region/ai lines an eceden s/a ibu es Findings
o’Connell and
Wa nock-
smi h
(2013)
in e iew; online
su ey ia
WebFlye ’s
o um
Commission-based
p oduc s (i.e.,
accommoda ion and
ca en al) and
unbundled p oduc s
(i.e., ex a leg oom
and p io i y boa ding).
Mainline
ca ie s &
LCC
none ai po pa king and checked
baggage we e he mos popula
commission-based and
unbundled ai line p oduc s.
Wa nock-smi h
e al.
(2017)
a ge ed online
su ey ia he
"Ques ionp o"
websi e
in ligh ood, be e ages,
en e ainmen ,
sea ing, p io i y
boa ding, e c.
FsC/LCC/
Cha e
Ca ie ype (FsC/LCC/
Cha e ), leng h o
ligh (long and
sho haul) and
jou ney pu pose
(business, leisu e,
VFR)
Passenge s alue essen ial p oduc s
o se ices like ood, d ink,
baggage, and sea assignmen ,
and W P o speci ic ancilla y
se ices a ies based on ca ie
ype, ligh du a ion, and ip
pu pose.
shaw e al.
(2021)
in e iew; su ey Commission-based
p oduc s
(accommoda ion, ca
en al, a el insu ance
and des ina ion
se ices, among
o he s)
shannon
ai po in
i eland
a elle s’ age, ligh
leng h (i.e., sho o
long-haul), and
equen lye
s a us.
Ca en al, ai po pa king, and ho el
sales impac W P mos , and
speci ic o e s inc ease he
likelihood o pu chasing.
Ren e al.
(2022)
online su ey sea selec ion China Fligh pu pose,
numbe o luggage
ca ied, si ua ion o
he accompanying
pe son, ligh ime,
and ligh du a ion
Passenge sea p e e ences all in o
h ee ca ego ies, una ec ed by
pe sonal cha ac e is ics like
gende and age bu in luenced
by ligh de ails like pu pose,
du a ion, luggage, companions,
and p e e ed sea .
sco i and
D esne
(2015)
expe imen s Baggage u.s./sou hwes
ai lines and
nine o he
ai lines
om
ame ica
Popula ion and income
a endpoin ci ies on
a ou e, ai a e and
baggage ee, ou is
ou e o mul iple
ai po s a o igin/
des ina ion, ime
and ai line-speci ic
dummy a iables
a sys em o simul aneous equa ions
was es ima ed.
Chiamba e o
(2021)
online su ey Checked baggage,
in ligh meals, sea
selec ion, p io i y
boa ding, and
onboa d Wi-Fi
– ip mo i e, age,
sho - and
long-haul
Leisu e passenge s a e mo e willing
o pay o ancilla y se ices han
business a elle s, and he e a e
no appa en di e ences in W P
o age. Fligh du a ion has a
mixed impac on W P o
ancilla y se ices.
song and Lee
(2020)
online su ey easy packaging o ligh s,
ho els, ca en als,
and ou is
expe iences wi h
eal- ime dynamic
in en o y and p icing
Ko ean gende , age, annual
income, occupa ion,
pu pose o a el,
F equency and
des ina ion
he mos popula commission-based
ancilla ies o Ko ean a elle s
a e ai po ans e s, cu ency
exchange, and a el insu ance.
Female a elle s, 20-some hings,
and equen a elle s a e likelie
o buy hese on ai line websi es.
Hugon-Dup a
and
o’Connell
(2015)
a simula ion
model
P emium economy class Vi gin a lan ic Long-haul he a ionale o implemen ing a
p emium economy sea is
jus i ied.
Rounci ell
e al.
(2018)
online su ey sea selec ion uni ed
Kingdom
age, p e iously paid a
sea selec ion ee,
membe o a
equen lye
p og am, business
and non-business
a el
accep ing p e e ed sea s is
nega i ely co ela ed wi h icke
p ice sensi i i y bu posi i ely
co ela ed wi h ai line epu a ion
and ligh ime con enience o
non-business a el. Pas sea
selec ion p oduc pu chases
s ongly p edic u u e business
and non-business a el
spending.
Leon and
uddin
(2017)
online su ey Posi ion o he sea , ex a
leg oom, p io i y
boa ding and
deplaning, ese ed
sea s, ese ed
o e head space,
in ligh meals, and
en e ainmen
ame ica age, gende , income,
numbe o ips,
ip’s pu pose
Passenge p e e ences o pu chasing
ancilla y se ices on in e na ional
ligh s a y based on hei
equency o lying and eason
o a el, wi h age and income
occasionally playing a ole.
(Con inued)
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