How the Ancillary Revenue Calculator Works: Assumptions and Method
The formula behind the MagiPort revenue calculator, every default assumption it uses, where those assumptions come from and what the result leaves out.
What the calculator estimates
The ancillary revenue calculator estimates the gross commission a branded destination guide could generate in a year, when customers reach it from the booking confirmations and pre-trip messages an organisation already sends. The commission comes from what those customers book at their destination: stays, activities, transfers and other services.
It does not estimate ticket revenue or existing ancillaries such as seats and bags. If you are new to the idea, start with what destination ancillary revenue is.
The formula
You enter two things: your annual digital bookings (up to 1,000,000,000) and your type of business. The calculator then works through three steps:
Visitors are rounded to whole people, so the figures shown at each step add up. Each step runs three times, once for each scenario, which gives the range the calculator shows.
For example, 100,000 bookings on the shared Expected assumptions:
| Step | Expected scenario |
|---|---|
| Annual bookings | 100,000 |
| Travellers reached (× 1) | 100,000 |
| Visitors (× 6%) | 6,000 |
| Gross revenue (× £1.50 per visitor) | £9,000 |
The default assumptions
Each scenario describes a different level of placement and performance:
- Conservative. Modest engagement and a cautious value per visitor.
- Expected. Our central modelled case for a well-placed post-booking link.
- Strong. Prominent placement across several touchpoints and a high-value destination mix.
Shared defaults (Ferry, Rail, Bus / Coach, Tour operator / OTA, Attraction / Ticketing, Sports / Events, Other)
| Assumption | Conservative | Expected | Strong |
|---|---|---|---|
| Travellers per booking | 1 | 1 | 1 |
| Engagement (visit rate) | 3% | 6% | 10% |
| Gross revenue per visitor | £0.75 | £1.50 | £2.50 |
| Per 1,000 bookings | £22.50 | £90.00 | £250.00 |
Airline
| Assumption | Conservative | Expected | Strong |
|---|---|---|---|
| Travellers per booking | 2.3 | 2.3 | 2.3 |
| Engagement (visit rate) | 4% | 8% | 12% |
| Gross revenue per visitor | £1.50 | £3.00 | £5.00 |
| Per 1,000 bookings | £138.00 | £552.00 | £1,380.00 |
Where the defaults come from
Every default is a MagiPort modelling assumption. None is a measured result from a live MagiPort guide, and none is taken from a published benchmark: we have not found public data on engagement or revenue per visitor for branded destination guides. That is why the calculator shows three scenarios rather than one number, and labels its results as illustrative.
Here is what each assumption represents.
Travellers per booking
The shared default is 1: it counts only the person who made the booking, the most cautious reading. Airline uses 2.3, because airline bookings more often cover several travellers. It assumes each traveller on the booking can be reached.
Engagement (visit rate)
The share of travellers reached who open the destination guide from messages the organisation already sends. It depends most on placement: a single link in a confirmation email sits at the Conservative end; a guide featured across several touchpoints sits at the Strong end.
Gross revenue per visitor
The average gross commission generated per visitor, across everyone who opens the guide, including those who book nothing. It folds three things into one figure: the share of visitors who book, what they spend and the commission rate.
For example, the shared Expected figure of £1.50 is what you get if 5% of visitors book something worth £300 at a 10% commission rate. Other combinations produce the same figure. Airline defaults are higher because airline passengers more often travel in groups and stay longer, so a single booking, such as a hotel, tends to be worth more.
How this compares with the founder's article
The illustrative scenario in the founder's article uses the same model with different inputs: 20% engagement, and $0.75 of commission per visitor (5% of visitors booking at an average of $150, at 10% commission). Its engagement is higher than any calculator default, the highest of which is 12%; its value per visitor is lower than the calculator's Expected case. Both are illustrations, not forecasts.
Adjusting the assumptions
Under “How did we calculate this?” on the calculator, you can replace the two main assumptions with your own:
- engagement, from 1% to 20%
- gross revenue per visitor, from £0.25 to £5.00
Your figures become the Expected case. Conservative and Strong are then recalculated around them, keeping the same proportions to Expected that the defaults use. That way your own Expected figure always sits in the middle of the range, rather than below a Conservative case we chose.
The category breakdown
The calculator also splits the result across categories. The split is illustrative and does not change the total:
| Category | Share of gross revenue |
|---|---|
| Accommodation | 35% |
| Things to do | 30% |
| Transfers & transport | 12% |
| Car rental | 8% |
| Connectivity / eSIM | 8% |
| Other destination services | 7% |
What the result leaves out
- Revenue share. The figure is the gross commission pool, before any share agreed with MagiPort or booking partners.
- Costs. It is before any marketing or operating costs.
- Your core revenue. Ticket sales and existing ancillaries are not included or affected.
- Seasonality and destination mix. The figures are annual averages across all destinations.
- Growth. It models a single year at the booking volume you enter.
- Currency. All figures are in GBP.
Change log
- 30 October 2026. Methodology published.
- 29 August 2026. Airline given its own assumptions: more travellers per booking, higher engagement and higher revenue per visitor.
Frequently asked questions
- Is the calculator's result a forecast?
- No. It is an illustrative estimate built from modelled assumptions. Actual results depend on how many customers you reach, how prominently the guide appears, your destinations, your customers and the commercial terms you agree.
- Why does it show gross revenue rather than what my organisation would keep?
- The commission split is agreed with each partner, so the calculator shows the full gross commission pool the guide could generate. What your organisation keeps depends on that agreement.
- Can I use my own assumptions?
- Yes. Open "How did we calculate this?" on the calculator and set engagement anywhere from 1% to 20% and gross revenue per visitor from £0.25 to £5.00. Your figures become the Expected case, and Conservative and Strong are recalculated around them.
- Why does only Airline have its own assumptions?
- Airline bookings more often cover several travellers, and airline passengers more often travel in groups and stay longer, so each booking reaches more people and each visitor is likely to be worth more. The other business types share the defaults until there is evidence to set them apart.
- Will the assumptions change?
- Yes. When live MagiPort guides produce measured engagement and revenue, those figures will replace the modelled defaults, and this page will record each change with its date.