Cebu Pacific targets to boost ancillary revenue

Aviation

Cebu Pacific Air is targeting up to a 10% increase in ancillary revenue over the next three years, and has set up a new team to focus on driving that business.

Close to 20% of the airline’s revenue now comes from ancillary sales, and the aim is for the figure to hit 26-30% over the next three years, the airline’s vice-president of marketing and distribution Candice Iyog tells FlightGlobal.

“We’ve done a pretty standardised approach where everybody pays the same for everything,” she says, giving the example of how passengers would pay the same for baggage on domestic flights, regardless of sector length and the day of travel.

“So I think one of the things we need to be better at, like the EasyJets of the world, is how do you revenue manage ancillary revenue based on routes, sector lengths, time of day, type of market and seasonality.”

The Filipino low-cost carrier also has no intention of putting a premium economy or business section on its widebody aircraft, since its “core value” is to use the aircraft’s high seating density to bring down the cost per seat. Cebu Pacific’s Airbus A330-300s are tightly-packed with 436 all-economy seats, compared to AirAsia X’s 377 seats across two classes.

The airline is also looking for a connectivity solution for its aircraft, but does not expect this to come to fruition in the short-term. The solutions have so far been unstable and far from seamless, with frequent drops in coverage.

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