JetBlue and Spirit: utilising low hanging fruit to drive ancillaries
All airlines worldwide are working to strengthen their non-ticket revenue base, and while vacation packing doesn’t garner much attention, the US airlines JetBlue and Spirit are working to shore up their packaging businesses.
JetBlue has created a new travel products subsidiary that will help the airline to meet its 2020 EPS goals. Its travel products arm includes its JetBlue Vacations brand and the airline is working to increase the number conversions of customers buying products other than a flight.
After engaging in a significant international expansion in 4Q2018, Spirit has also pledged to revamp its vacation package programme to bolster its non-ticket revenue.
Obviously vacation packing will never be a huge revenue generator for those airlines. But JetBlue and Spirit have decided that refreshing their packaging programs is a worthy investment for continuing to build their respective non-ticket revenues.
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