Sep 19, 2017
September 19, 2017, Dublin: “Wealth is largely the result of habit,” German-American businessman John Jacob Astor once said. With ancillary revenue of $44.6 billion, it’s clear the airlines included in the 2017 edition of the ‘CarTrawler Ancillary Revenue Yearbook’ by IdeaWorksCompany have developed the habit of making money.
IdeaWorksCompany researched financial filings made by 138 airlines all over the world, discovering 66 which disclosed qualifying revenue activity. Airlines joining the list for 2017 include Azul, Eurowings, Jejuair, Jet Airways, South African, and Vietjet. Now available free online, the 110-page, 2017 Yearbook provides a detailed global review of a proven revenue source that delivers a whopping $6.2 billion for United Airlines, 39.4% of sales for Wizz Air, and $49.89 per passenger carried by Spirit Airlines. Overall, the $44.6 billion represents 9.7% of total sales for the 66 airlines covered by the survey, which is up from last year’s 8.7%.
The survey covers airlines that disclosed revenue in 2016 financial filings from activities such as frequent flyer miles sold to partners, fees for checked bags, and commissions from car rentals. This year’s edition includes a list of the a la carte items sold through Amadeus, Sabre, and Travelport for each of the 66 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.
Aileen O’Mahony, Chief Commercial Officer at CarTrawler.
Airlines are increasingly more revealing about their approach to ancillary revenue. During the course of its global review of ancillary revenue activities, IdeaWorksCompany uncovered the following examples for 2016:
About CarTrawler: CarTrawler is the world’s leading B2B travel technology platform providing car rental and ground transportation options to over 700 million airline passengers annually, through our 100 airline partnerships. We connect travellers in real-time, on any device, to every significant car rental and ground transportation supplier globally. CarTrawler’s unique technology is an easy to implement platform, personalised based on your customers’ trip details. Our technology provides you with higher conversion rates and increased revenue.
About IdeaWorksCompany: IdeaWorksCompany was founded in 1996 as a consulting organization building brands through innovation in product, partnership and marketing, and building profits through financial improvement and restructuring. Its international client list includes airlines and other travel industry firms in Asia, Europe, the Middle East, and the Americas. IdeaWorksCompany specializes in ancillary revenue improvement, brand development, customer research, competitive analysis, frequent flyer programs, and on-site executive workshops. Learn more at IdeaWorksCompany.com.
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