Ancillary revenues to soar by 2015: Amadeus

THIRD-PARTY ancillary revenues are expected to grow by 30 per cent between 2010 and 2015, according to research commissioned by Amadeus.

The Cross-Sell Your Way to Profit study, conducted by Forrester Consulting, noted that third-party ancillary revenue would grow 10 times faster than general sales, whose annual growth rate is pegged at three per cent, in the next five years. Third-party ancillary growth is therefore likely to account for 2.5 per cent of total provider income by 2015 – or US$25 million for a US$1 billion company.

The study further indicated that more than half of travel providers would offer new “extreme” services such as virtual reality tours and digital concierges by 2020.

Mobile is also expected to become the second largest channel for third-party sales, after websites, by 2015.

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