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. 

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Safety Tech: Crash Avoidance or Sensory Overload?

As advanced safety technologies become even more pervasive on mainstream vehicles, are we creating “stupid drivers?"

Own the Fleet, Own the Future

In the dialogue surrounding new transportation paradigms, fleets have been off the public radar until recently. Here’s what’s going on, and a way for you to participate in the conversation.

Car Rental Rates Up, Fleet Sales Down — Correlation?

Car rental companies’ recent fleet discipline is needed now more than ever.

Job Finder: Access Top Talent. Fill Key Positions.

>