ancillary services definition travel tourism

What Are Ancillary Services in Tourism?

Ancillary services in tourism are a vital part of the tourism industry, but why? What does the term ‘ancillary services in tourism’ mean and what are some examples? Read on to find out…

Why Are Ancillary Services in Tourism Important?

Examples of ancillary services in tourism, ancillary services in tourism- to conclude.

Ancillary services in tourism refer to additional services that complement the main travel experience, enhancing convenience, comfort, and enjoyment for tourists . There are a range of ancillary services in tourism that are available.

Ancillary services in tourism are essential as they significantly enhance the overall travel experience.

Ancillary services in tourism provide added convenience, comfort, and value, making trips more enjoyable and stress-free for the tourist. These services cater to diverse needs, ensuring that tourists have access to everything they might require, from insurance and transportation to guided tours and special activities.

For the tourism industry, ancillary services create additional revenue streams and help differentiate offerings, leading to increased customer satisfaction and loyalty. They also encourage repeat business and positive word-of-mouth, boosting the industry’s growth.

Ancillary services are often used alongside budget travel options to allow the travel organisation to increase their revenue. For example, ancillary products and services in aviation really exploded after the introduction of the low cost carrier .

Now lets get to the important bit- what are these ancillary services in tourism? I have listed 15 examples of ancillary services in tourism below for you:

1. Travel Insurance

Offers protection against unexpected events like trip cancellations, medical emergencies, and lost luggage. Ensures tourists can handle unforeseen issues without financial burden.

My preferred provider for travel insurance is World Nomads .

2. Car Rentals

Provides flexibility for tourists to explore destinations at their own pace, visiting off-the-beaten-path attractions and customizing their travel experience.

I book all of my car hire through Trip.com .

3. Guided Tours

Enhances travel experiences with expert insights and structured itineraries. Offers in-depth knowledge about historical landmarks, cultural sites, and local customs.

4. Airport Transfers

Offers convenient transportation between airports and accommodations, reducing stress and ensuring timely arrivals and departures.

5. Special Activities

Includes spa treatments, adventure excursions , and culinary classes , adding unique experiences that make trips more memorable and enjoyable.

6. Wi-Fi and Communication Services

Helps tourists stay connected with reliable internet access. Enables easy information retrieval, communication with loved ones, and sharing of travel experiences.

7. Dining and Catering Services

Offers local cuisine and special dietary menus, enhancing the overall travel experience by ensuring that all guests’ food preferences and needs are met.

8. Shopping Services

Organises shopping tours or partnerships with local shops, allowing tourists to easily purchase souvenirs and local products, contributing to the local economy.

9. Currency Exchange

Provides on-site currency exchange services for international travellers, ensuring they have the local currency needed for their trip without hassle.

10. Lounge Access

Offers a comfortable and relaxing environment in airports, with amenities like food, drinks, and Wi-Fi, making layovers and wait times more pleasant.

11. Childcare Services

Ensures families traveling with children have a stress-free experience by offering childcare facilities and family-friendly activities.

12. Travel Assistance and Concierge Services

Assists with travel arrangements such as booking tickets, making reservations, and providing local information, enhancing the convenience of the trip.

13. Medical and Wellness Services

Includes access to medical facilities and wellness services like fitness centres, yoga classes, and health consultations to ensure tourists’ well-being.

14. Event and Entertainment Tickets

Provides tickets for local events, concerts, and theater performances, allowing travelers to experience the local culture and entertainment scene.

15. Language Translation Services

Offers translation services or multilingual guides to help tourists overcome language barriers, making communication easier and enhancing the travel experience.

In summary, ancillary services in tourism play a vital role in enhancing the overall travel experience by providing added convenience, comfort, and value. From travel insurance and car rentals to guided tours and wellness services, these offerings cater to diverse tourist needs and preferences. They not only improve customer satisfaction and promote positive travel experiences but also generate additional revenue for the tourism industry.

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What Are Ancillary Services in Tourism Examples?

By Robert Palmer

In the tourism industry, ancillary services refer to the additional products and services that are offered to complement the primary service or product. These services are designed to enhance the overall customer experience and provide added value to travelers. In this article, we will explore what ancillary services in tourism are and provide some examples.

Types of Ancillary Services in Tourism

Accommodation.

One of the most common types of ancillary services in tourism is accommodation. Hotels, motels, resorts, and other lodging options offer a range of additional services such as room service, laundry facilities, fitness centers, and more. These services are designed to enhance the guest’s stay and provide added convenience.

Transportation

Another popular type of ancillary service in tourism is transportation. This includes shuttle buses, car rentals, airport transfers, and other forms of transportation that help guests get around during their travels. These services can be particularly helpful for travelers who are unfamiliar with the area or who require assistance getting from one place to another.

Tours and Activities

Tours and activities are another type of ancillary service that can enhance the overall travel experience for guests. Examples include guided city tours, adventure excursions such as zip-lining or hiking trips, cultural experiences like cooking classes or wine tastings, or even theme park tickets.

Food and Beverage

Food and beverage options are yet another type of ancillary service that can be offered to travelers. This includes restaurants within hotels or resorts as well as cafes or bars located nearby. Many hotels also offer breakfast buffets or complimentary snacks in guest rooms that fall under this category.

Examples of Ancillary Services in Tourism

• Airport Shuttle: Many hotels offer airport shuttle services to transport guests between the airport and the hotel.
• Spa Services: Some hotels offer spa services such as massages, facials, and other treatments.
• Ticket Sales: Hotels or tour companies may sell tickets to local attractions such as museums or theme parks.
• Concierge Services: Concierge services can help guests with anything from making restaurant reservations to arranging transportation.
• Wi-Fi Access: Many hotels offer free Wi-Fi access to guests as an added convenience.

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Importance of ancillary services in the Travel Industry

Ancillary services have become integral to the airline industry and have been a prominent feature in travel trends for many years. Whether you’re doing leisure travel or just a normal business trip, you will notice that ancillaries are everywhere. They’ve become a huge factor in airline sales, and corporate travel, and are a prominent feature of air merchandising. People who look up travel bookings will notice that ancillaries are one of the foremost options available. But what are ancillary services and how have they affected travel bookings and travel trends over time in the airline industry?

What are the ancillary services?

The travel industry used to originally operate in a simple set of rules in which originally you would buy a ticket and most or all of the services that that airline offers would be included as a part of your ticket price. This was very normal for the travel industry since its inception, although even in the early days there were some ancillary services.

Ancillary services are just the ability to unbundle particular services from your ticket price . This gives you an incredible amount of freedom when it comes to creating a personalized trip of your choosing. Ancillary services can be thought of as an a la carte kind of air service . Instead of getting a single ticket price that includes a meal, the seat of your choice, your bags, and everything else, the rise of ancillary services unbundled these things from the base price meaning that your ticket price became far cheaper whether it was for corporate travel or leisure travel. Now you have an option about whether you wanted to include a checked bag or seat preference – by unbundling these services, it allowed individuals who didn’t care about these to save money on every flight they took.

How have they changed over time?

As mentioned earlier, ancillary services have changed over time. Originally, they were not a major part of the travel industry at all as travel bookings were done as part of a package. You would then buy an entire package that included everything that you would need as a part of your travel with the airline industry. However, as costs started to become more expensive, the concept of budget airlines arose .

Budget airlines are particularly notable for their use of ancillaries . Ancillary services allow an airline to have the lowest ticket prices by successfully unbundling every single part of what used to be a larger whole. Now if you want to be able to choose your seat it will cost you an extra amount; if you want a pillow, headphones, a meal, or anything else, these are all services that will cost more money instead of being included in the original ticket price.

The importance of ancillary services on business travel

The benefit for corporate travel and airline sales has been massive. It allows corporations to have a significantly cheaper fare if they choose to not use additional services. Corporate booking tools like TTS Corporate allow their clients to add or remove ancillaries according to their needs and to the travel policies of the company, giving travelers the flexibility to add services that they find essential to have a comfortable business trip. This unbundling has also been a huge travel trend among many budget airlines, some of whom make almost half of all their income from these ancillary services.

This has been an important part of air merchandising as budget airlines are now capable of competing with more established veteran airlines because their tickets prices, often the single most important factor for those engaging in leisure travel or corporate travel, are often lower than that of older airlines that use the original combination method. This has created a huge impact on travelers over the last few decades although the pendulum has begun to swing the other way.

Air merchandising nowadays

Originally the huge amount of air merchandising was a great way of offsetting costs, but now that airline travel has become cheaper overall, this unbundling has just started to feel cheap and not in the positive sense of the word. Nobody likes to feel like they’re being nickel-and-dimed by their airline for every single little thing from getting water on their flights to being able to take a carry-on bag. Some of the ancillary services have become so egregious and their charging methods so outrageous that individuals are starting to desire the bundle days back when certain things could be expected to be a part of their ticket. This is especially true if one of the ancillary services is a carry-on bag.

Most individuals who have never flown a budget airline do not realize that most budget airlines do not allow for carry-on bags unless you have paid an additional fee for them. So if you were just assuming that your carry-on bag would be covered because every other airline you flew with allowed it don’t be surprised if you are charged a significant fee at the check-in or if you are unluckier still a massive gate fee. These kinds of practices have led to a backlash against ancillary services in general and have created a new travel trend of individuals wanting to have combinations of things and the group price for items they feel should be complementary. By simply including the original package back in the ticket price, clients can get a reliable, regular, and repeatable travel experience without all the air merchandising.

Are they a better deal?

One of the big questions in the travel industry is to wonder if ancillary services are better than a full package . The answer is: it depends . Some travelers have found ways to make ancillary services work for them very well and can travel with budget airlines almost anywhere in the world as long as they are okay with either having limited baggage allowances, limited services, or a lesser quality travel experience. In essence, ancillary services trade quality for the price. If you are willing to have fewer airline services available for getting a less expensive ticket, then ancillary services are great. If, however, you have a higher expectation of customer service, a higher expectation of your travel experience, and a sense of what should be complementary, then ancillaries may be a bit of a problem for your travel booking.

Regardless of what you decide to do, ancillary services, although they are not as popular as they have been previously, are likely to continue to be an important part of the airline industry and travel bookings for many years to come and so deciding whether these are the kinds of services you would like to receive or simply have included in your ticket price will determine how you enjoy and experience the airline industry now and into the future.

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Why Do Tour Operators Offer Ancillary Services: Understanding the Motivations and Benefits

Discover the motivations and benefits behind tour operators’ provision of ancillary services in our comprehensive article titled “Why Do Tour Operators Offer Ancillary Services: Understanding the Motivations and Benefits.” As experienced travel writers with a background in tourism management, we delve into the dynamic landscape of these additional services and shed light on the strategies employed by tour operators to enhance customer experiences and maximize revenue streams. With our extensive research and industry connections, we aim to provide valuable insights into the reasons behind tour operators’ commitment to offering ancillary services, uncovering the advantages they bring to both the operators and the customers.

Key Takeaways:

• Ancillary services in the tourism industry are additional products and services offered to complement the primary service or product and enhance the overall customer experience.
• Offering ancillary services can help businesses generate higher revenues by differentiating themselves and attracting more customers.
• Ancillary services can be categorized as stress reducers (e.g., baggage fees) and pleasure items (e.g., onboard services), with stress reducers contributing to the largest share of ancillary revenue for airlines.
• Adopting innovative ancillary practices can lead to a significant increase in revenue and create opportunities for start-ups.
• Partnering with reputable brands that provide reliable services can enhance the overall travel experience for customers and establish businesses as trusted providers of ancillary services.
• Successful incorporation of ancillary services can benefit businesses with increased revenues and improved competitiveness in the tourism industry.

Table of Contents

Ancillary services have become a crucial aspect of the tourism industry, with tour operators offering additional products and services to enhance the overall travel experience. But have you ever wondered why tour operators provide these ancillary services? In this article, we will explore the motivations and benefits behind tour operators’ offering of these additional services.

Enhanced Revenue Opportunities

One significant reason behind tour operators’ provision of ancillary services is the potential for improved revenues. By offering services that go above and beyond the basic travel offerings, tour operators can differentiate themselves from their competitors and attract more customers. This, in turn, leads to increased revenue streams.

A study by IdeaWorks and CarTrawler found that ancillary services such as baggage fees contribute to the largest share of ancillary revenue for airlines, earning a combined 62 percent. This highlights the financial significance of offering these additional services in the tourism industry.

Competitive Edge and Differentiation

In the highly competitive landscape of the tourism industry, tour operators must adopt innovative strategies to stand out from the crowd. By incorporating ancillary services into their offerings, tour operators can gain a competitive edge and differentiate themselves from their competitors.

For example, when online travel agencies (OTAs) embraced ancillary offers in 2015, it resulted in an impressive 85 percent revenue increase. This demonstrates the importance of ancillary services in driving business growth and success.

Improved Customer Experience and Satisfaction

Another motivation behind tour operators’ provision of ancillary services is to enhance the overall customer experience. By offering additional products and services, tour operators can provide added value to travelers and ensure their satisfaction.

Ancillary services can be categorized into stress reducers and pleasure items. Stress reducers include services such as baggage fees and other offerings that help alleviate travelers’ worries. On the other hand, pleasure items encompass onboard services and travel retail offerings that enhance the enjoyment of the travel experience.

By offering these services, tour operators can create a more seamless and enjoyable journey for their customers, resulting in higher satisfaction rates and customer loyalty.

Partnership Opportunities and Trust Building

Tour operators can also benefit from partnering with reputable brands that provide reliable ancillary services. These collaborations not only enhance the overall travel experience for customers but also allow tour operators to establish themselves as trusted providers of these additional services.

For example, Asego is a recognized brand known for its upscale travel ancillary services. By partnering with such reputable brands, tour operators can build trust with their customers and strengthen their market position.

In conclusion, tour operators offer ancillary services in the tourism industry for various reasons. These services provide enhanced revenue opportunities, help tour operators gain a competitive edge, improve the overall customer experience, and allow for partnership opportunities and trust building. By understanding the motivations and benefits behind the provision of ancillary services, tour operators can optimize their offerings and thrive in the evolving world of travel and tourism.

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Maximizing Revenue Opportunities for Tour Operators

In today’s competitive tourism industry, tour operators are constantly seeking ways to enhance their revenue opportunities. One strategy that has proven to be highly effective is the offering of ancillary services. Ancillary services refer to additional products or services that tour operators provide alongside their main offerings. These services can range from airport transfers and travel insurance to guided tours and excursions.

But why do tour operators offer ancillary services? What are the motivations and benefits behind this approach? Let’s delve into the topic and understand how tour operators can maximize their revenue opportunities through the provision of ancillary services.

Understanding the Motivations

Tour operators are driven by several motivations when it comes to offering ancillary services. One primary motivation is the desire to increase their revenue streams. By diversifying their offerings and providing additional services, tour operators can tap into new sources of income. Ancillary services can significantly contribute to a tour operator’s bottom line and enhance their financial stability.

Another motivation for tour operators is the opportunity to gain a competitive edge in the market. The tourism industry is highly competitive, and by offering unique and desirable ancillary services, tour operators can differentiate themselves from their competitors. This differentiation can attract more customers and increase market share.

Tour operators also recognize the importance of customer satisfaction and loyalty. By offering ancillary services that meet the needs and preferences of their customers, tour operators can enhance the overall customer experience. When customers have access to a wide range of convenient ancillary services, it not only simplifies their travel arrangements but also enhances their satisfaction and likelihood of booking with the same tour operator in the future.

Lastly, tour operators understand the value of partnerships with reputable service providers. By partnering with reliable brands that offer high-quality ancillary services, tour operators can strengthen their market position and build trust with their customers. These partnerships ensure that the ancillary services provided by tour operators are of the highest standard, further enhancing the overall customer experience.

Maximizing Revenue Opportunities

Offering ancillary services presents significant revenue opportunities for tour operators. These services can serve as incremental revenue sources and contribute to the overall financial success of the business. Here are some key ways tour operators can maximize their revenue opportunities through ancillary services:

Market segmentation : Utilize market data and customer insights to identify untapped segments of potential customers. Develop ancillary services that cater specifically to the unique needs and preferences of these segments, allowing tour operators to maximize revenue by targeting niche markets.

Personalization : Offer personalized ancillary services that align with the individual preferences and interests of customers. By tailoring ancillary options to meet specific customer needs, tour operators can increase the perceived value of their offerings and subsequently charge premium prices, thereby maximizing revenue.

Bundling : Create attractive bundled packages that combine the main tour or travel experience with carefully selected ancillary services. Bundling allows tour operators to upsell and cross-sell their offerings, boosting revenue by encouraging customers to purchase additional services and upgrades.

Strategic pricing : Implement dynamic pricing strategies for ancillary services. By analyzing market demand, customer behavior, and booking patterns, tour operators can optimize the pricing of their ancillary services to maximize revenue during peak periods, while also offering attractive discounts during low seasons to stimulate demand.

Online presence : Leverage the power of the internet and digital platforms to promote and sell ancillary services. A well-designed and user-friendly website, along with effective online marketing strategies, can significantly increase the visibility and accessibility of ancillary services, leading to greater revenue opportunities.

Partnerships and collaborations : Establish strategic partnerships with local businesses, service providers, and attractions to offer unique and exclusive ancillary services. Collaborating with reputable brands that align with the tour operator’s target market can expand the range of ancillary services available and attract a broader customer base, ultimately maximizing revenue.

Continuous improvement : Regularly monitor customer feedback and adapt ancillary services based on evolving customer preferences and market trends. By continuously reviewing and refining the range of ancillary services offered, tour operators can ensure they remain relevant and appealing to customers, thereby maximizing revenue opportunities.

• Ancillary services offer tour operators opportunities to increase revenue streams and gain a competitive edge in the tourism industry.
• By diversifying their offerings and providing additional services, tour operators can tap into new sources of income and enhance financial stability.
• Offering personalized and bundled ancillary services, implementing strategic pricing strategies, and leveraging online platforms can help tour operators maximize revenue opportunities.
• Strategic partnerships and continuous improvement are essential in optimizing ancillary services and attracting a broader customer base.

Sources: – Sherpa: The world of ancillaries for tour operators: lessons from airlines – TrekkSoft: 5 reasons why revenue management is important for tour operators

Exploring the Competitive Advantage of Offering Ancillary Services

As the travel industry evolves, tour operators are continuously seeking ways to enhance customer experience and generate additional revenue. One such strategy that has gained popularity is the offering of ancillary services. These additional services, ranging from stress reducers to pleasure items, can provide a competitive edge for tour operators and open up new opportunities for growth. In this article, we will delve into the motivations and benefits behind tour operators’ provision of ancillary services, exploring the competitive advantage they offer in the ever-changing tourism landscape.

Understanding the Motivations behind Offering Ancillary Services

Tour operators recognize that by offering ancillary services, they can tap into new revenue streams and diversify their income sources. Ancillary services have a significant impact on bolstering the financial stability of airlines, especially during challenging times. In fact, prior to the pandemic, global airline ancillary revenue was steadily increasing. Other travel companies have taken note of the success airlines have had with ancillaries and have implemented similar practices, leading to substantial revenue growth.

By incorporating ancillary services into their offerings, tour operators can stand out from their competitors. These additional services allow them to differentiate themselves in the market and offer customers a more personalized experience. The provision of stress reducers, such as baggage fees, and pleasure items, like onboard services and travel retail, significantly contribute to ancillary revenue. Understandably, tour operators are motivated to capitalize on these added revenue streams and improve their market position.

Benefiting from the Competitive Advantage

Tour operators who strategically offer ancillary services can reap several benefits and gain a competitive advantage in the industry. One key benefit is the opportunity to increase revenue. Ancillaries provide an avenue for tour operators to generate additional income beyond the core travel services they offer. By unbundling these services from ticket prices, tour operators have the flexibility to maximize their revenue potential.

Furthermore, the provision of ancillary services enhances the overall customer experience. These services cater to customers’ preferences and needs, allowing them to tailor their travel experiences to their liking. Offering stress reducers, such as travel insurance or additional baggage allowances, helps alleviate travelers’ concerns and enhances peace of mind. Pleasure items, on the other hand, contribute to a more enjoyable journey and leave a positive impression on customers.

Developing partnerships with reputable brands that offer reliable ancillary services can also strengthen the trust and market position of tour operators. Collaborating with established providers ensures that customers receive high-quality ancillaries, enhancing their overall travel experience. These partnerships demonstrate tour operators’ commitment to delivering exceptional service and build trust among their customer base.

• Tour operators offer ancillary services to diversify revenue streams and improve financial stability.
• The provision of ancillary services differentiates tour operators from their competitors and allows for a more personalized customer experience.
• Ancillary services, categorized as stress reducers and pleasure items, contribute significantly to ancillary revenue.
• By offering ancillary services, tour operators can increase their revenue potential and better meet customers’ needs.
• Partnerships with reputable brands that provide reliable ancillaries strengthen tour operators’ market position and build trust among customers.

Citations: – The world of ancillaries for tour operators: lessons from airlines and eVisa – Importance of ancillary services in the travel industry

Examining the Evolving Trends in the Provision of Ancillary Services

The provision of ancillary services has become a growing trend in the tourism industry. Tour operators are increasingly offering these additional services to enhance the overall customer experience and maximize their revenue streams. In this article, we will explore the motivations and benefits behind tour operators’ offering of ancillary services, shedding light on the evolving trends in this area.

The Motivations Behind Ancillary Services

1. Enhancing the Customer Experience

One of the primary motivations for tour operators to offer ancillary services is to enhance the customer experience. By providing additional services and products beyond the core travel offering, tour operators can cater to the diverse needs and preferences of their customers. These services may include airport transfers, travel insurance, guided tours, or special activities. By offering these options, tour operators create a more personalized and convenient experience for their customers, increasing customer satisfaction and loyalty.

2. Differentiation and Competitive Edge

In a highly competitive market, tour operators strive to differentiate themselves from their competitors and gain a competitive edge. By offering unique and value-added ancillary services, tour operators can stand out and attract more customers. These additional services may include exclusive access to attractions, VIP experiences, or specialized packages tailored to specific traveler segments. By differentiating themselves, tour operators can position themselves as leaders in the market and attract a broader customer base.

3. Revenue Generation

Ancillary services present a significant revenue opportunity for tour operators. By offering additional services and products, tour operators can generate a new stream of income. These services can range from optional add-ons during the booking process to in-destination experiences that customers can purchase during their trip. Ancillary services have become a vital component of tour operators’ revenue models, as they provide an avenue for increasing overall sales and profitability.

The Benefits of Ancillary Services

1. Enhanced Revenue Opportunities

The provision of ancillary services opens up new revenue opportunities for tour operators. By diversifying their offerings and monetizing additional services and products, tour operators can increase their revenue streams. This additional revenue can help offset the costs associated with the core travel products and improve the overall financial performance of the business.

2. Improved Customer Satisfaction

By offering ancillary services, tour operators can improve customer satisfaction levels. These additional services cater to the specific needs and preferences of travelers, allowing them to tailor their travel experiences. When customers receive personalized and convenient services, their overall satisfaction increases. Happy and satisfied customers are more likely to become repeat customers and recommend the tour operator to others, contributing to long-term business success.

3. Competitive Advantage

Tour operators that offer a wide range of ancillary services gain a competitive advantage in the market. Customers are increasingly looking for a one-stop-shop for all their travel needs, and by providing comprehensive ancillary services, tour operators can meet these expectations. Customers are more likely to choose a tour operator that offers a variety of services, rather than having to deal with multiple providers for different aspects of their travel. This competitive advantage can help tour operators attract more customers and increase market share.

4. Flexibility and Adaptability

Ancillary services offer tour operators the flexibility to adapt to changing market conditions and customer preferences. As travel trends evolve and customer demands shift, tour operators can easily introduce new services or modify existing ones to meet these changing needs. This adaptability allows tour operators to stay relevant in a dynamic industry and ensure they are meeting the demands of their target market.

In conclusion, tour operators offer ancillary services to enhance the customer experience, differentiate themselves from competitors, and generate additional revenue. These services provide significant benefits, such as improved customer satisfaction, increased revenue opportunities, and a competitive advantage in the market. By understanding the motivations and benefits behind ancillary services, tour operators can optimize their offerings and thrive in the tourism industry.

• Offering ancillary services allows tour operators to enhance the customer experience, differentiate themselves, and generate additional revenue.
• Ancillary services provide benefits such as improved customer satisfaction, increased revenue opportunities, and a competitive advantage.
• Ancillary services offer tour operators the flexibility to adapt to changing market conditions and customer preferences.

Sources: – Rancilio, G., Rossi, A., Falabretti, D., Galliani, A., & Merlo, M. (2022). “Ancillary services markets in Europe: Evolution and regulatory trade-offs.” – ResearchGate: A Review of Ancillary Services Implementation in the Revenue

Q1: What are ancillary services in the tourism industry?

A1: Ancillary services in the tourism industry refer to additional products and services that are offered to complement the primary service or product, aiming to enhance the overall customer experience and provide added value to travelers.

Q2: Why do tour operators offer ancillary services?

A2: Tour operators offer ancillary services to differentiate themselves from competitors, attract more customers, and generate higher revenues. These services go beyond the basic travel offerings and provide additional value and convenience to travelers.

Q3: What types of ancillary services do tour operators typically offer?

A3: Tour operators typically offer two types of ancillary services: stress reducers and pleasure items. Stress reducers include services that help alleviate travelers’ worries, such as baggage fees. Pleasure items encompass onboard services and travel retail offerings that enhance the enjoyment of the travel experience.

Q4: How do ancillary services contribute to tour operators’ revenue?

A4: Ancillary services contribute to tour operators’ revenue by providing additional streams of income. By offering services beyond the primary travel arrangements, tour operators can earn revenue from fees, commissions, or mark-ups associated with ancillary services.

Q5: How can tour operators optimize their ancillary offerings?

A5: To optimize their ancillary offerings, tour operators should consider partnering with reputable brands that provide reliable services. This collaboration enhances the overall travel experience for customers and allows tour operators to establish themselves as trusted providers of ancillary services.

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Why Use Ancillary Services in Tourism?

Ancillary services are like the “icing on the cake” or extras that improve the experience for tourists and can make any trip feel complete. in today’s competitive travel market, hotels are increasingly looking to go beyond offering just a comfortable room. ancillary services, the additional offerings complementing your core accommodation, are a powerful tool to boost guest satisfaction and your hotel’s revenue..

Guðmundur F. Magnússon

Marketing Manager

You may not be convinced that ancillary services are worth the effort. Let us take a closer look at the reasons for using ancillary services in tourism and why they should be a key part of your hotel’s strategy:

New Sources of Revenue: Ancillary services are an opportunity to generate additional revenue on top of room rates . From spa treatments and in-room dining to day tours and activities, you can cater to various guest needs and preferences.

Improved Guest Experience : Modern travelers crave convenience and personalization. Ancillary services are your chance to cater to both. Consider offering pre-booking options for tours, airport transfers or spa appointments. Guests appreciate the convenience and feel valued when their needs are met. You can use pre-arrival email for this.

Guest Loyalty and Differentiation: By offering a range of ancillary services, you can set your hotel apart from the competition. Partnering with hospitality technology companies like TourDesk, you can foster guest loyalty and encourage future visits

Increased Operational Efficiency: Offering ancillary services can increase your operational efficiency. Partnering with hospitality software providers can reduce in-house management and online booking services can free up staff time to improve overall efficiency. 

Valuable Guest Data: Guest purchases of ancillary services provide data on their preferences and spending patterns.This information can be used to personalize future offerings, tailor marketing efforts and most importantly maximize guest satisfaction and revenue.

Successful ancillary services call for careful planning and execution. Think about your target group, partner with reputable companies and ensure a seamless booking and delivery process. By strategically implementing ancillary services, your hotel can become a role model for exceptional guest experiences, boosting revenue and securing a competitive advantage.

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The Role of Ancillary Services in Today’s World of Travel and Tourism

Travel trends have undergone a huge shift in recent years. With leisure, as well as business travel, gradually penetrating most sectors of the population, the demand for exclusively curated travel packages has parallelly gone up. This is where selling travel ancillary services comes into the picture as it adds a personal touch to a traveller’s overall experience.

– Dev Karvat

With the changing patterns in the travel and tourism industry, planning a trip for a client these days involves a lot more than simply booking a flight, hotel and transportation. Suggesting ancillary services; those little extras that go a long way in enhancing the customer’s travel experience is sure to boost the brand value of travel advisors, besides, of course, improving their revenue as well.

Reasons to Sell Travel Ancillary Services

Simplify travel planning for clients ­­– Travellers more often approach a travel agent because they do not have the time to research and figure out the complexities of the travel booking process. All they expect is a comprehensive tour package that offers good value for the money they spend. This is where the travel agent’s expertise comes into the picture because they are expected to be aware of certain hidden risks and costs of a trip that a layman is likely to miss.

Economise client’s trips – A travel agent’s responsibility isn’t just limited to providing solutions to the client’s booking requirements. Being a travel expert, a travel agent also helps in cutting down the overall cost of their client’s trips by suggesting practical tips like purchasing a reliable travel assistance and insurance plan like the one offered by Asego that will cover them for possible travel exigencies like medical emergencies, loss of baggage/valuables, missed flights, etc.

Adds value to consumer relations – In a service-dominated industry like travel and tourism, proactively offering niche services that the clients are not likely to expect adds a personal touch to the travel agent’s services. Besides, delivering beyond their expectations will also lead to customer satisfaction, which is the only way to achieve brand loyalty as a travel agent.

Provide a bespoke experience for travellers – By adding ancillary services like dining referral and reservation, courier service assistance, special events assistance, flower delivery assistance, etc. to their bucket, travel advisors can raise their customer service standards a notch higher. This, in turn, leaves a lasting impression on the customer’s mind.

Comprehensive Travel Protection – The Indian travel and tourism sector has seen a makeover of sorts in the past two decades. And with that, the demands of an average Indian traveller have also gone up. So, it is safe to claim that one size fits all approach when it comes to travel assistance and insurance plans is passe. For instance, today, young travellers are increasingly inclined towards holiday spots which offer adventure sports activities or destinations where they can explore the place in a self-driven car, which calls for plans that cover risks associated with such activities. On the other end, senior citizens are looking at travel risk management plans that can protect them from possible complications of pre-existing ailments.

Personalised support – Asego’s services are backed by personalised support and 24X7 customer service helping travellers’ avail global assistance services, fast-track claims and round-the-clock support during emergencies.

Enhanced revenues – One of the biggest advantages of offering travel ancillary services is a significant improvement in travel agents’ revenues. To gain an edge in the industry, it becomes imperative for a business to offer services that are a cut above the rest. Upselling travel ancillary services from a reputed and reliable brand like Asego offers them a chance to earn substantial revenue along with an added opportunity to retain clients.

So, in today’s world, a dependable travel insurance plan accompanied by other relevant travel ancillary services will not only be a valuable asset in a traveller’s kitty but also act as an up-selling point for travel agents and tour operators.

About the Author: Dev Karvat is the Founder and CEO of Asego

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Techsembly is the only e-commerce platform dedicated to hospitality that supports the sale of all ancillary services from gifting, gift cards, experiences, F&B in one integrated checkout.

The Road to Recovery: How Travel Experiences and Ancillary Services Are Rebuilding Tourism

With increased expectations on customer service and travellers becoming enthusiastic to travel again, hoteliers need to widen their scope of services and offer unique experiences to keep them engaged while providing them with memories they’ll cherish forever. learn how to maximise revenue from ancillary services by leveraging travel experiences., what are ancillary services, and why is it important.

Back in full force, the travel industry is at the height of restoring itself. While technology has been the talk of the town in designing transformative hospitality experiences, real-life travels and expeditions are an irreplaceable form of art that even technology cannot be substituted for. During the pandemic times, the travel and hospitality industry pursued new streams of revenue from ancillary services and has since become a major source of income for businesses . In addition to lodging and in-house amenities, ancillary revenue can be generated from add-ons and commissioning third-party providers (e.g. tour operators) to market to guests of the hotel. With increased expectations on customer service and travellers becoming enthusiastic to travel again, hoteliers need to widen their scope of services and offer unique experiences to keep them engaged while providing them with memories they’ll cherish forever. Beyond the five-star stay, this can be done through curated activities, exclusive experiences and bespoke services customised for travellers. 

How travel experiences are transforming tourism

We witnessed the transformation of travel as it evolved beyond the realms of earth and into the metaverse, yet the digital sphere simply cannot replace the true beauty of the world and all its wonders. After a dormant few years, achieving life satisfaction has become an important factor. The desire for activities and experiences are being prioritised when planning a trip, evident from the rise of ‘ Bleisure’ travellers who seek for work-life balance. Pent-up demand for unique experiences has brought in an influx of new customers and travel groups that hoteliers are forming partnerships with local businesses to craft interesting and relevant experiences for their guests. 

With the right experiences, this form of ancillary service can help jumpstart the revival of tourism and hotel guest stays, providing travellers with the opportunity to explore unique places and take part in local community experiences, engaging with locals. Activities such as cultural expeditions and immersive tours, nature-based and food-focused trips ignite a traveller’s passion for the world whilst also boosting the region’s economy and support for local communities.

As Asia’s famed cities rapidly remove travel restrictions, travel demand is soaring. The industry has also been eagerly waiting for the return of Chinese tourists and their big spending. A McKinsey research revealed that Chinese tourists have begun to favour adventures in the wild after an increased appreciation for nature and the outdoors during the pandemic, as well as authentic cultural experiences. Those that prioritise self-development are also seeking trips that upkeep and help nurture themselves through self-improvement and educational experiences, leading to the boom of wellness tourism. Due to such, Chinese tourists favour boutique hotels and beach resort villas that offer either experiences within an exotic culture or even homestays for on-the-ground local experiences.

Best practices and benefits of using ancillary services to boost hotel sales

In adopting ancillary services, hotels have seen a 125% increase in revenue growth since onboarding Techsembly’s e-commerce and gifting solutions. A CBRE study on American resorts also identified an average of 35% increase in revenue through ancillary income, outside of booking. Ancillary services are low in risk and investment, and generate high revenue with good margins, making it a profitable division. The use of ancillary services like experiences and add-on amenities are a great tool to boost customer satisfaction and loyalty, meeting the needs of travellers and strengthening customer relationships during and after the trip. 

Hotels that have brought in experts and interesting people from the community to elevate their experiences exclusive to guests are some of the best practices seen in the industry. Here are some exemplary strategies from hoteliers using ancillary services and hosting experiences: 

• Capella Hotel and Resorts: Taking pride in its Capella Culturist team (a blend of personal assistant, butler and personal travel guide) crafts programmes and experiences by liaising with the locals and highlighting the community. This Heritage and Cultural Immersion Expedition gives guests a glance into the daily lives of locals and introduces them to Singapore’s Peranakan heritage. From living life like a local, starting their mornings in the wet market to tasting the local cuisines of the Peranakans and playing a game of Mahjong for an afternoon pastime, these activities are unique enough that cannot be found anywhere else.

• Aman: The hotel group well-known for its breathtaking resorts also designs beautiful unique experiences for their luxury clientele, such as Ayurveda at Amangalla . Guests are given access to Amangalla’s Ayurveda physician for an in-depth consultation, then embarking on a four-day personalised programme including prescribed meals aligned to their dosha-requirements, alongside customised Ayurveda treatments. This is an example of an itinerary and experience that is fully tailored to the guest.

• Raffles Hotel: Singapore’s iconic Raffles Hotel is known for its long-standing history and royal visits have created a Reflections of Raffles staycation package involving its in-house historian Leslie Danker. A morning history tour guided by Mr Danker is provided and a trishaw ride around the property with a little food expedition to try local culinary delights.  

‍ Building experiences with Techsembly

With that being said, experiences can come in many shapes and forms that can appeal to different guests and their profiles. Techsembly is an e-commerce platform that helps luxury hotels build out their e-commerce offering and expand ancillary services with experience vouchers and gift cards that can help convert storytelling moments into transactional and profitable mediums.

We also have a strategic partnership with media publications such as BurdaLuxury , distributing experiences and unique hotel offerings through travel marketplaces to their affluent readers of Travel + Leisure and Lifestyle Asia . Combining a curation of luxury lifestyle content with inspirational travel tips, our partnership platform brings together the world’s best luxury hotels and bucket-list experiences for travel connoisseurs.

Create, manage and promote unique experiences with Techsembly’s gifting and experiences platform in the spirit of travel revival. Gift cards and experience vouchers are timeless gifts and vehicles to generate revenue all year round. We’ve helped leading hotels lift their revenue by 500% and a 380% increase in sales volume from listing their extraordinary experiences online to the world. Book an exploratory call with our Head of Sales, Floris Vermeulen, to get your hotel set up to stand out from the competition.

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To learn more about Techsembly and how we can tailor our solution to you, please get in touch here.

Our solution supports, personalises and accelerates the sale of takeaway gourmet food, memorable gifts, gift cards and on-property experiences in one seamlessly integrated checkout.