Round Trip is your weekly roundup of what’s been happening in the passenger experience and airline ancillary revenue space. Here are the top stories from this past week:
American Airlines CEO, Doug Parker, made a bold claim stating that he didn't think that American Airlines was going to lose money again. He is basing this prediction on the future profits he believes American Airlines will make from ancillary revenue opportunities. He said that the airline is "just scratching the surface" in what they can bring in from ancillary revenues. Checked bags and new cabin classes are just two areas that American Airlines sees as high revenue drivers.
Chinese travellers are making up a giant market for foreign industries as travellers are going abroad more and more. To help fuel this surge, foreign merchants are accepting UnionPay. Why is this important? When a merchant accepts UnionPay, it gives Chinese nationals a sense of trust in the business. They are able to check how much they are paying when their purchase is converted on their phones to show the local currency. Merchants accepting UnionPay can plan on becoming a business of choice for many Chinese travellers.
The UK's leading carrier, Monarch Airlines, was placed into administration last week by auditors KPMG. 110,000 customers were stranded abroad and 300,000 were expecting upcoming canceled flights. Not only will this shut down affect Monarch employees and passengers, but Luton Airport will also feel the effects since Monarch was a large driver of passengers to the airport. The Civil Aviation Authority is helping to ensure that all passengers who are currently abroad are able to get a new flight home at no cost.