Airlines rely heavily on ancillary revenues - but quite often the strategy is unclear. Traditional carriers act more in panic after years of discussion, thus reducing their customer proposition as examples of hand luggage only fares by British Airways, Lufthansa and more and more other legacy carriers and the recent switch to buy on board catering in cooperation with Marks & Spencer by British Airways shows.
Ancillary revenues are not ancillary any more, but technology and lack of innovation and focus in airlines create a lot of limitations. In the meantime, airports and other third parties try to get a piece of the cake - and customer insight.
Fundamental change is needed.