Case studies

Ancillary products strategy and pricing

Airline strategy - Vistara

Ancillary services are optional extras that passengers can buy in addition to their tickets, forming a major part of airline revenues. Vistara, a leading Indian airline, offers these services to enhance passenger comfort, differentiating from low-cost competitors. The challenge is identifying the right customers, pricing, and timing for each service. Should WiFi be free or paid? When should services be offered – at booking or before boarding?

Gabriel’s consulting team aided Vistara in addressing these questions. They conducted a comprehensive survey of Indian passengers for market segmentation, analyzed Vistara’s ticket data, and benchmarked its ancillary offerings against other airlines. This helped Vistara refine its extra services and pricing strategies.