CarTrawler and IdeaWorksCompany, the foremost consultant on ancillary revenue, have released the CarTrawler Worldwide Estimate of Ancillary Revenue.
The report defines ancillary revenue as:
“Revenue generated by activities and services that yield cashflow beyond the transportation of customers from A to B. This wide range of activities includes commissions gained from hotel bookings, the sale of frequent flyer miles to partners, and a la carte services. It’s the a la carte portion, which includes baggage and seat assignment fees, that represents the share directly paid by consumers.
One headline finding predicts a substantial increase in airline ancillary revenue, projecting it to reach an impressive $117.9 billion worldwide for 2023; a 7.7 per cent increase above the previous record of $109.5 billion record in 2019 and surpassing last year’s total of $102.8 billion for 2022. Chief Commercial Officer of CarTrawler, Aileen McCormack suggested the figures the need for airlines to identify additional revenue streams post pandemic.
Looking at the which airlines are maximising ancillary revenue, the report also shows low-cost carriers (LCCs) accounting for 31 per cent of market share. It further notes that US airlines are increasingly gaining momentum with the successful roll out of loyalty programmes and frequent flyer benefits.
While the industry’s complete recovery is not expected until 2024, the projected recovery in ancillary revenue for this year underscores its significance to future strategy. Read the full report for more detail.
For more like this see:
- “We are shouting it from the rooftops.” Sustainability, innovation, and ancillaries with Eddie Wilson
- From selling ancillaries to shaping travel experiences
- Wizz Air Tops CarTrawler Yearbook of Ancillary Revenue
