NP-PF-11 · Ancillary Pricing (Bags, Seats, Meals)

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Process Flow Diagram (BPMN)

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L4 Process Steps

Step	Step Name	Role / Swim Lane	System	Input	Output	KPI	Dec?	Exc?
Phase 1 1.1	Benchmark competitor ancillary fee schedule	Ancillary Revenue Analyst	ATPCO Insights / OAG Schedule Analyser	Competitor ATPCO OS filings, industry ancillary revenue reports	Competitor ancillary benchmarking report — bags, seats, meals by carrier	Coverage of ≥10 competitive carriers; report delivered within 5 business days of cycle start	N	N
1.2	Analyse ancillary revenue performance by category	Ancillary Revenue Analyst	AWS Redshift / Tableau	PSS ancillary sales data, EMD settlement extracts from BSP/ARC	Ancillary revenue dashboard: revenue per passenger by category (bags, seats, meals), route, fare class, and channel	Ancillary revenue per passenger ≥$35 (IATA industry benchmark); dashboard refreshed daily	N	N
1.3	Define ancillary pricing strategy and targets	Head of Ancillary Revenue	Microsoft PowerPoint / SharePoint (strategy documentation)	Benchmarking report, revenue dashboard, corporate revenue plan	Approved ancillary pricing strategy document with targets by category, route group, and channel	Strategy approved by Revenue Committee within 5 business days; targets set for all three ancillary categories	Y	N
Phase 2 2.1	Define ancillary product catalogue	Ancillary Product Manager	Amadeus Altéa PSS (Service Catalogue module)	Approved ancillary pricing strategy, ATPCO OS sub-code reference table	Product catalogue: checked bags (1st/2nd/oversize/overweight), seat tiers (standard/preferred/exit row), meal options by route	Product catalogue covers ≥95% of ancillary revenue categories; catalogue configuration change lead time ≤7 calendar days	N	N
2.2	Configure dynamic seat pricing tiers	Ancillary Product Manager	Amadeus Revenue Management (NRM) / Amadeus Altéa PSS	Seat map data, historical seat selection patterns, load factor forecasts by flight	Seat pricing tiers: exit row $25–$45, preferred front $15–$30, standard $0–$10 — linked to fare class and days-to-departure bands	Seat ancillary attach rate ≥30% of eligible bookings; seat revenue uplift ≥5% vs prior pricing cycle	Y	N
2.3	Design ancillary bundle offers (fare + ancillary)	Ancillary Product Manager	Amadeus Altéa PSS / NDC API Gateway	Fare bundle definitions, ancillary product catalogue, competitor bundle analysis	Bundle definitions: e.g., Value Bundle (fare + 1 checked bag + seat selection); configuration loaded in PSS and NDC offer schema	Bundle attach rate ≥20% of total bookings; bundle revenue uplift ≥8% vs unbundled equivalent	N	Y
Phase 3 3.1	Prepare ATPCO Optional Services (OS) filing	Fare Filing Analyst	ATPCO Filing Portal (Optional Services module)	Approved ancillary fee schedule, ATPCO OS sub-code taxonomy (S5/S7/T183 tables)	ATPCO OS filing records: S5 carrier-defined sub-codes, S7 service definitions, T183 carrier fee tables per product	ATPCO OS filing accuracy ≥99.5% (zero mis-filed sub-codes); filing submitted ≥3 business days before effective date	Y	Y
3.2	Validate OS filing for GDS EMD compatibility	Fare Filing Analyst / IT Distribution Analyst	Sabre TQT / Travelport Smartpoint (test environments)	ATPCO OS filing records, GDS EMD issuance test scripts	EMD issuance test results confirming OS codes display, price correctly, and settle in Sabre, Travelport, and Amadeus GDS	EMD test pass rate 100% across all three GDS environments before production go-live	Y	Y
3.3	Publish ancillary OS records to effective date	Fare Filing Analyst	ATPCO Filing Portal	Validated OS filing records, approved effective date	Live ATPCO OS records distributed to all subscribing GDS and OTA channels	Effective date accuracy 100%; publication lead time compliance 100% (minimum 3-day ATPCO advance notice)	N	N
Phase 4 4.1	Configure ancillary upsell flows on .com and app	Digital Product Manager	Amadeus Altéa PSS / NDC API Gateway	Approved ancillary product catalogue, UI/UX design specifications, A/B test plan	Live ancillary upsell screens on airline.com and mobile app — bags, seat selection, meal pre-order — integrated with PSS booking flow	.com ancillary attach rate ≥45% of web bookings; mobile app attach rate ≥35%	N	N
4.2	Load ancillary offers via NDC API for OTA/TMC	Distribution IT Analyst	NDC API Gateway / Sabre GDS / Travelport GDS / Amadeus GDS	Ancillary product catalogue, NDC IATA 21.3 offer/order schema definitions	NDC ancillary offers available to NDC-connected OTAs, TMCs, and aggregators	NDC ancillary offer API response time ≤800 ms p95; NDC ancillary availability to connected agencies ≥90%	Y	Y
4.3	Configure EMD-S/A settlement in BSP and ARC	Revenue Accounting Analyst	IATA BSP Link / ARC (US domestic) / Amadeus Altéa PSS	ATPCO OS records, EMD settlement rules by channel and ancillary type	Configured EMD-S (standalone) and EMD-A (associated) settlement records in BSP/ARC for all ancillary categories	EMD settlement error rate <0.1% of issued EMDs; EMD reconciliation completed within 48 hrs of issuance	N	Y
Phase 5 5.1	Monitor ancillary attach rates and revenue daily	Ancillary Revenue Analyst	AWS Redshift / Tableau	Daily EMD sales data, PSS ancillary booking extracts, channel sales feeds	Daily ancillary revenue report by category, route, channel, fare class vs target	Ancillary revenue per passenger ≥$35; bag attach rate ≥55%; seat attach rate ≥30%; meal pre-order attach rate ≥10% on eligible routes	N	N
5.2	Apply dynamic seat pricing adjustments by flight	Revenue Management Analyst	Amadeus Revenue Management (NRM)	Real-time load factor data, seat selection rates by cabin zone, days-to-departure bands	Dynamically updated seat price recommendations applied to open inventory — higher prices as departure approaches and seat scarcity increases	Seat ancillary revenue per ASM uplift ≥5% vs static pricing baseline; dynamic rule execution latency ≤15 min post load-factor update	Y	N
5.3	Conduct quarterly ancillary price review	Head of Ancillary Revenue / Pricing Analyst	AWS Redshift / Tableau / ATPCO Filing Portal	Quarterly ancillary revenue performance vs targets, competitor price monitoring, customer NPS feedback on ancillary fees	Updated ancillary fee schedule and new ATPCO OS filings where price changes are approved; revised targets for next quarter	Quarterly review completed within 10 business days of quarter end; approved price changes implemented within 5 business days	Y	N

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Process Attributes

Identification

Process IDNP-PF-11

L1 DomainNetwork Planning & Scheduling

L2 ProcessPricing & Fare Management

L3 NameAncillary Pricing (Bags, Seats, Meals)

L4 Steps15 across 5 phases

Decision Gates7 (all with iteration loops)

Exceptions5 documented

Swim Lanes (Roles)

Ancillary Revenue Analyst

Head of Ancillary Revenue

Ancillary Product Manager

Fare Filing Analyst

Fare Filing Analyst / IT Distribution Analyst

Digital Product Manager

Distribution IT Analyst

Revenue Accounting Analyst

Revenue Management Analyst

Head of Ancillary Revenue / Pricing Analyst

Systems & Tools

ATPCO Insights / OAG Schedule AnalyserAWS Redshift / TableauMicrosoft PowerPoint / SharePoint (strategy documentation)Amadeus Altéa PSS (Service Catalogue module)Amadeus Revenue Management (NRM) / Amadeus Altéa PSSAmadeus Altéa PSS / NDC API GatewayATPCO Filing Portal (Optional Services module)Sabre TQT / Travelport Smartpoint (test environments)ATPCO Filing PortalNDC API Gateway / Sabre GDS / Travelport GDS / Amadeus GDSIATA BSP Link / ARC (US domestic) / Amadeus Altéa PSSAmadeus Revenue Management (NRM)AWS Redshift / Tableau / ATPCO Filing Portal

Key Performance Indicators

Benchmark competitor ancillary fee scheduleCoverage of ≥10 competitive carriers; report delivered within 5 business days of cycle start

Analyse ancillary revenue performance by categoryAncillary revenue per passenger ≥$35 (IATA industry benchmark); dashboard refreshed daily

Define ancillary pricing strategy and targetsStrategy approved by Revenue Committee within 5 business days; targets set for all three ancillary categories

Define ancillary product catalogueProduct catalogue covers ≥95% of ancillary revenue categories; catalogue configuration change lead time ≤7 calendar days

Configure dynamic seat pricing tiersSeat ancillary attach rate ≥30% of eligible bookings; seat revenue uplift ≥5% vs prior pricing cycle

Design ancillary bundle offers (fare + ancillary)Bundle attach rate ≥20% of total bookings; bundle revenue uplift ≥8% vs unbundled equivalent

Prepare ATPCO Optional Services (OS) filingATPCO OS filing accuracy ≥99.5% (zero mis-filed sub-codes); filing submitted ≥3 business days before effective date

Validate OS filing for GDS EMD compatibilityEMD test pass rate 100% across all three GDS environments before production go-live

Airline-Specific Risks & Pain Points

ATPCO OS data does not always reflect actual displayed fees — airlines use waivers and loyalty exemptions that are not filed, understating true competitive price levels

EMD settlement data from GDS channels lags 24–48 hrs; real-time ancillary revenue visibility is unavailable, complicating intra-cycle performance management

Ancillary pricing strategy must align with fare bundle strategy — misalignment (e.g., raising bag fees while lowering bundle price) causes customer confusion and internal revenue dilution

Altéa Service Catalogue configuration changes require IT change-request tickets — average lead time of 5–7 days restricts rapid ancillary product launches or emergency price corrections

Dynamic seat pricing rules in Altéa are statically mapped per fare class — true O&D-based dynamic seat pricing requires NRM integration that is not available across all GDS distribution channels, creating channel price inconsistency

NDC bundle content is not consistently rendered in legacy GDS channels — Sabre and Travelport display gaps force manual workarounds and create a two-tier customer experience that advantages direct channel

Inputs / Outputs

Primary InputCompetitor ATPCO OS filings, industry ancillary revenue reports

Primary OutputUpdated ancillary fee schedule and new ATPCO OS filings where price changes are approved; revised targets for next quarter

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