Definition of Ancillary Revenue





What is the definition of the term "ancillary revenue"? What does the term "ancillary revenue" mean?

In order to define the term "ancillary revenue", let's first break out the dictionary to define "ancillary".

"Ancillary" is defined as something of "secondary importance".

definition of Ancillary Revenues - Financial Dictionary"Ancillary revenues", therefore, are revenues that are of secondary importance to the operation of a company. Having said that, they are still very important, as you are about to see in the example below.

Airlines make billions upon billions of dollars every year from "ancillary revenues".

The main revenue stream of an airline? Ticket sales. This is the primary revenue stream of all of the major airlines.

Airlines also generate billions of dollars per year in ancillary revenues. Ancillary revenues for an airline can include baggage fees, ticket change fees and pillow/food/wi-fi fees. These are all "ancillary revenues" that contribute significantly to an airline's bottom line.




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