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.
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