Determinants of ancillary revenue strategies and passenger willingness to pay: Evidence from the airline industry
Merve Sahin · Kahraman Susleyici · Selim Zaim · Talha Harcar
Bussecon Review of Social Sciences · 2026 · Vol. 7 / Issue 2 · 01-12
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Abstract
The airline industry faces persistent profitability pressure stemming from high fixed costs, intense competition, and macroeconomic volatility. Since the entry of low-cost carriers (LCCs), ancillary revenue—defined as income generated from services and products supplementary to the core ticket—has evolved from a peripheral activity into a strategic financial pillar for both full-service and low-cost airlines. This study investigates the determinants of passenger willingness to pay (WTP) for à la carte ancillary services and identifies behavioural and demographic profiles that predict purchase frequency. Using a survey of 254 air travellers and a multi-method statistical approach (Chi-square tests, Mann–Whitney U tests, and Kruskal–Wallis with Bonferroni-corrected pairwise comparisons), six hypotheses are tested. The results demonstrate that (i) passengers familiar with à la carte services allocate significantly larger travel budgets to such services (p < .05); (ii) frequent travellers (>5 flights/year) are significantly more likely to purchase à la carte services (χ² = 8.44, p < .01); (iii) frequent-flyer programme (FFP) members purchase ancillary services at substantially higher rates (χ² = 9.70, p < .01); and (iv) contrary to common managerial intuition, short-haul passengers purchase à la carte services more frequently than long-haul passengers (χ² = 4.51, p < .05). Wi-Fi access is valued across all age cohorts without statistically significant differences. The findings extend the revenue management literature by empirically validating familiarity and loyalty-programme membership as the strongest behavioural predictors of à la carte WTP, and offer actionable guidance for targeted personalisation, segmentation, and dynamic pricing strategies. Implications for machine-learning-driven ancillary recommendation systems are also discussed in light of recent advances in offer management (2022–2025).
Keywords: {'name': 'Ancillary revenue, À la carte pricing, Willingness to pay (WTP), Passenger behaviour, Ancillary recommendation systems'}
Authors & affiliations
Merve Sahin
Ibn Haldun University
Kahraman Susleyici
Affiliation not supplied
Selim Zaim
Ibn Haldun University
Talha Harcar
Pennsylvania State University
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