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Economics

Study Notes

Seasonal and Ancillary Revenues for Businesses

Level:
AS, A Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas

Seasonality refers to fluctuations in output and sales revenue related to the seasonal of the year.

For most products there will be seasonal peaks and troughs in production and/or sales

  • Demand for slippers peaks in the run up to Christmas
  • Demand for plants at garden centres is linked to the planting season
  • There is high demand for decorating materials before the Easter weekend
  • High street retailers such as jewelry companies may sell as much as 80-90% of their products over Xmas
  • Theatres take a high % of their income during pantomime season

Ancillary revenues

Ancillary revenues are extra revenues other than the income generated from selling the basic product. Many airlines for example generate ancillary revenues besides the ticket price – including baggage fees, priority boarding charges and revenues from on-board sales.

Airlines with the highest ancillary revenue as a share of total revenue in 2015

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