Airline Ancillary Revenue Projected at $67.4B

Photo credit: Ross Parmly
Photo credit: Ross Parmly
IdeaWorksCompany, a consultancy on airline ancillary revenues, and CarTrawler, an online global car rental platform, project airline ancillary revenue will reach $67.4 billion worldwide in 2016.

This forecast is a 13.9% increase from 2015, according to the “CarTrawler Worldwide Estimate of Ancillary Revenue.” And it’s an increase of 200% from the 2010 figure of $22.6 billion — the first year of the ancillary revenue estimate.

This is the seventh year of the “CarTrawler Worldwide Estimate of Ancillary Revenue.”

“Successful ancillary revenue generation is dependent on offering customers the right product at the right time, often before they have even asked for it,” said Aileen O’Mahony, Chief Commercial Officer at CarTrawler. “... The unlocking of data-driven insights is enabling airlines to propose ancillary products and services to their customers in an increasingly sophisticated way.”

Revenue from optional services, such as on-board sales of food and beverages, checked baggage, premium seat assignments, and early boarding benefits, was determined to represent $44.9 billion of the projected global 2016 total.

The smaller share at $22.5 billion comes from non-fee activity, such as the sale of frequent flier miles to program partners, and commissions earned on the sale of services to travelers, such as hotel accommodations and car rentals.

Click here to view the full report. 

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