The new CarTrawler Ancillary Revenue Yearbook by IdeaWorks Company reveals a total of $40.5 billion in ancillary revenue, comprising nearly 8.7% of total sales, for 67 airlines covered by the survey.
IdeaWorks Company researched financial filings made by 135 airlines all over the world, and uncovered 67 which disclosed qualifying revenue activity.
Now available free online, the 105-page, 2016 Yearbook provides a detailed global review of a proven revenue source that delivers a whopping $6.2 billion for United Airlines, 36.4% of sales for Wizz Air, and $51.80 per passenger carried by Spirit Airlines.
The survey covers airlines that disclosed revenue in 2015 financial filings from activities such as frequent flier miles sold to partners, fees for checked bags, and commissions from car rentals.
This year's edition also includes a list of the a la carte items sold through Amadeus, Sabre, and Travelport for each of the 67 airlines. For example, optional extras for baggage, seat assignments, meals and sports equipment can be booked through Travelport-equipped agencies on AirAsia, and baggage, meals and unaccompanied minors can be booked for Pegasus through the Amadeus system.
Michael Cunningham, Chief Commercial Officer, CarTrawler, commented: “As one of the first products purchased for any journey, airlines have privileged access to customer travel itineraries before anyone else does. In order to capitalise on this competitive advantage, airlines need to ensure they maintain ownership of their customer relationship and utilise the valuable data they already have access to, enabling them to act like a responsive travel assistant.
“By offering their customers timely ancillary add-ons, they have the ability to become a one-stop shop for travel - driving brand loyalty, revenue and profit.”
The largest numbers were registered by US major carriers such as United, Delta and American. The leader in ancillary revenue share is Spirit, at 43.4%. Other individual airline highlights found in the Yearbook:
- Air Canada’s share of payouts made by the Aeroplan loyalty program for the purchase of reward travel was $548m.
- Delta enjoyed a revenue boost of $125m from its Comfort+ seating product during the 4th quarter of 2015.
- Jet2.com in the UK is truly a holiday-oriented airline (and an ancillary revenue leader) with package holiday customers representing 41.5% of all passengers flown.
- Qatar Airways posted stunning revenue of $528m from the sale of duty free goods and beverages associated with its Qatar Duty Free operation.
- Southwest’s revenue from EarlyBird Check-In is estimated to be $260m for 2015.
• The full report is available to download here.