Ancillary revenue

Ancillary revenue is the income generated by a business from goods or services other than its main services or products. For example, in the airline industry, ancillary revenue might come from 

• baggage fees, 
• seat selection, 
• priority boarding, 
• in-flight meals, and/or 
• Wi-Fi. 

In the hospitality industry, ancillary revenue might come from room service, spa treatments, laundry, etc. 

A supplementary source of income, ancillary revenue can significantly increase a company’s bottom line. It often has higher profit margins than the core offerings. In addition, it allows companies to diversify their revenue streams, making these businesses more stable and profitable.