Managing ancillary fees
Ancillary fees, charges, or services refer to the 'extra' things a person might need when taking a trip but are not necessarily vital to the transaction or business trip. And spending on these extras has increased by over 33% in the past few years. It's essentially an additional revenue stream for airlines, hotels, ground transport, and travel suppliers to charge for non-essential products and services, and they make up around 8% of total business travel expenses.
For businesses, staying on top of corporate travel ancillary charges can help avoid extra fees and lead to greater budget control, improved cost visibility, policy compliance, and stronger relationships with suppliers.
Airlines
Airline ancillaries have been around since budget airlines entered the market. Remember when Jetstar launched in Australia? Offering low-cost fare options, or in recent years, when Virgin Australia removed free meals and added the 'lite fare' to their ticketing options? These moves brought the main ancillary fees to travellers through additional services above and beyond the ticket on the plane.
- Seat selection, plus extra legroom and upfront spots
- Inflight meals and drinks
- Ticket changes and flex fare options
- Upgraded seats through bidding
- Priority boarding and express check-in
- Checked baggage, oversized, overweight, and sometimes carry on bags
- Inflight Wi-Fi, entertainment, and headphones
- Comfort kits and amenities packs
- Kids entertainment kits and souvenirs
- Lounge or shower room access
- Fast-track through security
Pre-planning and bundling
When booking flights, travellers could consider ticketing options that bundle services or already include added extras like seats, upfront extra legroom seats, checked baggage, meals in advance, Wi-Fi, and even cancellation or change options if flexibility is required. Business class or premium economy might be more justified.
Maximise loyalty programs
Many, if not all, airlines reward frequent travellers with points for usage. These points can often lead to upgrades, additional baggage allowances, lounge access, and airline tickets.
Negotiate corporate rates
Businesses with high travel volumes should negotiate contracts with certain airlines to get a better deal on common ancillaries (checked luggage, Wi-Fi, lounge access).
Accommodation
Hotel ancillaries haven’t been around as long as airline industry fees, but in recent years hotel chains and brands are reaping the rewards from offering additional items and services outside its core product (a room to sleep and shower in).
- Car parking and valet parking
- Private car hire through the hotel and transfers
- In-room luxuries champagne, treats, and movies
- Take home items, shampoo, conditioner, robes, slippers
- Reward program memberships
- Hotel Wi-fi (rare but does happen)
- Room service
- Spa and fitness centre services
- Minibar consumption, restocking, and removal
- Room upgrades
- Late check out early check in
- Cleaning fees (we're looking at you, Airbnb)
Pre-negotiate amenities
For frequent hotel stays, companies can negotiate discounted all-inclusive rates that include Wi-Fi, parking, or breakfast. These often come as part of a package, helping avoid common ancillary fees and individual charges for each service.
Loyalty programs
Encourage employees to sign up for hotel loyalty programs offering free perks. Frequent guests can rack up points that may also be redeemable for future stays or services and avoid ancillary fees altogether.
Monitor add-ons
Use business travel booking tools or expense management systems to track hotel expenditures. This data can help companies identify patterns and adjust policies accordingly.
Limit unnecessary extras
Discourage the purchase of luxury in-room extras and take-home items (robes, slippers), mini bar use, or celebratory add-ons (flowers, champagne) unless it's business trip critical.
Opt for business-friendly options
Hotels, Airbnb and self-contained apartments can cater to corporate travellers differently. Some offer business centre access, and others can support by curbing additional dining costs through in-room facilities.
Ground transport
Gone are the days when the car itself was deemed an ancillary service. Car hire companies now offer multiple extras, all at a cost of course.
- Different levels of car insurance cover
- Window screen and tyre coverage
- Roadside assistance
- Kilometre limits
- Child car seats, GPS navigation system, mobile phone holders
- After-hours collection and drop-off
- Additional drivers
- Refuelling
- Late return fees
- Processing and admin fees for speeding fines and tolls
Pre-purchase insurance
Car rental insurance can be one of the priciest add-ons. Instead of opting for the rental company's coverage, travellers can often use their company's travel insurance or pre-negotiated insurance coverage.
Stick to km limits
Watch out for kilometre restrictions that could lead to hefty overuse charges. If the trip is expected to exceed the limit, book a car with unlimited k's upfront.
Plan for refuelling
Pay close attention to the fuel gauge. The rental company will charge inflated refuelling fees and send the receipt without hesitation. Refuel before drop-off, and remember to use the expense management systems to track the ancillary fee.
Connect to your toll account
Before driving out of the car rental yard, temporarily link the rental car registration to a corporate or personal toll account to avoid additional fees on top of the already high toll cost.
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