What are Ancillary Products? A Definition + Examples

definition of ancillary products

What are Ancillary Products? A Definition + Examples

These are supplementary items or services that are related to a primary offering. They augment the value of the core product or service, providing customers with additional options or features. For instance, when purchasing an airline ticket, options such as baggage fees, seat upgrades, or in-flight meals are often available. These additional purchases are not essential for the core service of air travel, but they enhance the customer experience and generate additional revenue for the provider.

Offering these supplementary items can significantly impact a business’s profitability and customer satisfaction. They present opportunities to tailor the experience to individual customer needs and preferences, fostering loyalty. Historically, the practice of offering add-ons has evolved from a simple means of increasing revenue to a sophisticated strategy for differentiation and value creation in competitive markets.

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