ABSTRACT

Ancillary revenue has become a key revenue component for low-cost carriers (LCCs) in Europe, but airlines throughout the world are following the ancillary revenue movement. This chapter focuses on ancillary revenue generated by à la carte pricing. It describes the practice of à la carte pricing among European LCCs using the example of Ryanair, the leading LCC in Europe. Ryanair is often considered as the pioneering airline of the à la carte business model, unbundling its services into core air travel, charging very low base fares while offering an increasing list of optional services at a fee.