CarTrawler-sponsored analysis shows ancillary revenue continues steady advance by every measure, and asks the question, can too much of a good thing be a bad thing?
DUBLIN, IRELAND & SHOREWOOD, WISCONSIN, USA – Every year IdeaWorksCompany searches for disclosures of financial results which qualify as ancillary revenue for airlines all over the globe. Annual reports, investor presentations, financial press releases, and quotes attributed to senior executives all qualify as sources in the data collection process.
These results are contained in the new report, 2018 Top 10 Airline Ancillary Revenue Rankings. Of the nearly 150 airlines reviewed, 70+ reveal figures related to ancillary revenue. The following is a sampling of the 2018 financial year results found in the report:
- Back in 2007 the top ten airlines, as rated by total ancillary revenue, generated $2.1 billion. Fast forward to 2018 and the top ten tally has leapt more than 16X.
- The top “% of revenue” producer for Europe & Russia was Wizz Air at 41.1%, for the Americas was Viva Aerobus at 47.6%, for Asia & South Pacific, AirAsia at 29%; the Middle East/Africa region did not make the top 10 ranking.
- The top performing US-based airlines as a group achieved revenue of more than $17.5 billion from frequent flyer programs, that’s an average of $25 per passenger.
- Top “ancillary revenue per passenger,” mostly from a la carte activities, by global regions: Jet2.com $43.91 (Europe & Russia), Spirit $50.94 (Americas), and Virgin Australia $34.74 (Asia & South Pacific). The Middle East/Africa region did not make the top 10 ranking.
Aileen McCormack, Chief Commercial Officer at CarTrawler, said: “The exponential growth of ancillary revenue among carriers is yet another indication that the airline experience now goes far beyond the flight itself. Customers want choice for every part of their journey and need a one-stop-shop to get them from door to door, not just from airport to airport. It is crucial that airlines ‘own the last mile’ and offer customers everything they are looking for, wherever they are in the world. Mobility is king in the travel marketplace, and airlines need to take advantage of the opportunity they have at the top of the purchasing funnel to maximise revenues from this trillion-dollar marketplace and not get left behind by their competitors.”
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.