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Sriwijaya turns to ancillary revenues to ease financial woes
Sriwijaya Air is to collaborate with travel-related companies such as hotels and car rental firms under a profit-sharing scheme
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Sriwijaya Air's aircraft takes off from an airport. The airline plans to boost its ancillary revenues to improve its financial condition. (-/Reska K. Nistanto)
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riwijaya Air Group aims to boost its ancillary revenue from product differentiation and innovation that the airlines offer in their mobile apps as part the airline’s program to improve the airline’s financial condition.
Sriwijaya Air’s Commercial Director Joseph Dajoe K. Tendean said that in the future, Sriwijaya’s mobile apps would be developed into a one-stop service platform that would not only sell airline tickets, but would also provide features that can be used to book hotels, rent cars and buy tour packages.
By developing the apps into a one-stop service platform, the airline can receive additional income from the sales of tour packages and hotel rooms, he said.
“The concept and features we have in our mobile apps will be developed and our apps can help boost our ancillary revenue. In the next few weeks, we will add a hotel and accommodations booking feature and rental car booking,” said Joseph during a press briefing in Jakarta on Monday when Sriwijaya relaunched the revamped version of their app, Sriwijaya Air Mobile.
In providing the service, Sriwijaya Air Group consisting of Sriwijaya Air and Nam Air would collaborate with travel-related companies such as hotels to car rental companies under a profit-sharing scheme.
The airline’s vice president for distribution channels, digital business and cargo, Ferdian, said Sriwijaya also planned to add tour packages, with attractive airfares and hotel rates, for travelers using the mobile app. Such an offer indicates Sriwijaya’s seriousness to make its mobile app a one-stop service platform for traveling needs, he said.
“When people want to travel or take business trips, they do not need to move from one platform to another, they just need to go to the same platform. With the [package tour], passengers can get airline tickets and hotels and we will get the ancillary revenue from the service,” he said.
