Airlines: Boost Ancillary Sales with Deferred Payments for Agencies
Increase airline ancillary and extra service sales. Learn how deferred payments for B2B travel agencies can significantly lift conversion and average ticket value.
Selling extra services and ancillaries is vital for airlines today. These include things like checked bags, seat upgrades, or travel insurance. But often, travel agencies struggle to pre-finance these for their customers. This can limit their sales. What if there was a way to make it easier for agencies to sell more, without taking on financial risk? This is where deferred payments for B2B travel agencies come in. Why are ancillary sales so important for airlines? Ancillary services are no longer just an add-on. They are a core part of an airline's revenue strategy. For many carriers, they represent a significant portion of their income. Things like choosing a specific seat, adding an extra bag, or getting priority boarding. These small charges add up quickly. They also give customers more choice and a personalised travel experience. But if an agency cannot easily offer and pre-finance these options, you lose that potential revenue. Challenges for agencies selling ancillaries Cash Flow Strain: Agencies often pay for ancillaries upfront. Their clients might pay later. This creates a gap in their cash flow. Reduced Upselling: If an agency feels a financial burden, they might hesitate to push for extra services. They focus on the base fare. Complex Processes: Managing different payment terms for various ancillaries can be a headache. This adds administrative time. How deferred payments boost your ancillary revenue Deferred payment solutions let travel agencies pay for bookings and ancillaries later. They do not need to use their own cash immediately. This removes a major barrier to selling more. When an agency can offer an upgraded seat or an extra bag without upfront payment, they are more likely to do so. This directly translates into higher ancillary sales for your airline. The direct impact on your bottom line Imagine an agency selling a flight ticket. Their client wants to add a checked bag and premium seat. If the agency has to pay for these immediately, they might limit what they offer. With deferred payment, they can secure these extras without touching their cash reserves. This means more sales for you. We see airlines experience an 18% to 25% increase in ancillary conversion rates . This is because agencies feel more confident offering a full suite of services. Fliinow: Simplifying B2B payments for airlines and agencies Fliinow provides the infrastructure for deferred payments specifically for the travel industry. It integrates directly into your existing booking systems. This makes the process smooth and invisible to the end customer. For the agency, it feels like a simple payment option. For your airline, it means more revenue without extra work. You get paid upfront by Fliinow. The agency gets flexible payment terms. Key benefits for your airline with Fliinow Increased Ancillary Sales: Agencies are empowered to sell more, leading to higher revenue per passenger. Reduced Cart Abandonment: Fewer agencies drop ancillary sales due to payment hurdles. Improved Agency Loyalty: Agencies prefer partners who make their operations easier. Better Cash Flow: You receive payment for ancillaries quickly, usually within 24-48 hours. Zero Financial Risk: Fliinow handles the credit risk with the agency. Understanding the numbers: A comparison Let us look at a practical example. Consider a typical flight booking through a travel agency. The total value includes the base fare and several ancillary services. Here is how deferred payments can change the outcome: Scenario Base Fare Ancillaries Offered Agency Pre-payment Airline Ancillary Revenue Traditional Payment €150 Checked Bag (€30) Required (total €180) €30 Deferred Payment (with Fliinow) €150 Checked Bag (€30), Seat Choice (€20), Insurance (€15) Not required upfront €65 Outcome Same More services offered Cash flow improved +116% (more than double) This table shows a clear picture. When agencies do not face upfront payment hurdles, they sell more. The average ancillary spend per pas
