Ancillary Revenue

Ancillary revenue refers to additional income that a company generates beyond its primary product or service. It’s basically the cherry on top of the sundae. Here are some common examples:

  • Baggage fees and seat selection fees charged by airlines
  • Resort fees and extra charges for amenities such as Wi-Fi or parking at hotels
  • Rental car companies charging for additional insurance, GPS, or other optional features
  • Concert venues selling merchandise or charging for premium seats
  • Restaurants offering special menu items or upselling desserts or drinks
  • Banks charging fees for services such as overdraft protection or wire transfers

Ancillary revenue can be a significant source of profit for businesses.

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