There could be a day when an airline will pay you to fly with them, according to the CEO of WOW Air.
Skúli Mogensen, founder and CEO of low-cost carrier WOW Air, says he sees a day when customers will be paid by the airline to fly with them.
“I can see a day when we pay you to fly,” Mogensen said to Business Insider.
The airline is already known for its extremely low prices for air travel. In January, WOW Air had a sale for $69 one-way tickets from the US to Europe. In June, the carrier featured tickets for as low as $55 for trans-Atlantic flights. The extremely low prices were part of a strategy to bring awareness to the rapidly growing carrier.
Airlines have found ways to lower ticket costs and increase revenue by setting fees for passengers wanting to select certain seats, in-flight meals and early boarding. They have also developed partnerships with hotels, car rental companies, restaurants and other travel-related services to come up with methods to raise revenue in more ways than from ticket sales alone.
That is the strategy Skúli Mogensen hopes to capitalize on. He plans to make ticket prices cheaper, but to have passengers pay for travel options such as more legroom.
“Our goal, and we’re working hard toward it, is for our ancillary revenue to actually surpass our passenger revenue,” Mogensen said. “Whatever airline becomes the first to achieve this will be a game changer,” he added.
Morgensen also has plans to use social media and technology to find innovative ways for customers to earn rewards for flying with WOW Air. According to Business Insider, the company plans to pay customers for their social media posts that promote the airline.
"People tend to take a lot of photos while traveling, sharing their experiences. We see a lot of interesting ways to empower people to spread the word about WOW and to reward them accordingly," Mogensen said.
Many airlines already have special reward programs and a-la-carte services for their customers, but what becomes interesting is seeing what the future holds for carriers competing to provide the lowest airfares for customers while making the largest profit.