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.
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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.
West Coast disasters pose unique challenges and liabilities for rental fleet operators, who are advised to take steps tailored to their specific situations.
Angry car renters are storming social media, the mainstream media, and online ratings platforms to complain about charges they claim are either unfounded or excessive.
Revcuity, an outgrowth of Frontline Performance Group, aims to help clients capture more revenue moments with face-to-face customers, including in the car rental space.
Martin Romjue has been editing and reporting for ARN since 2023 and fully transitioned to the role of chairman of the International Car Rental Show in 2026.