Nov 1, 2023
The CarTrawler worldwide estimate posts 7.7% increase above the previous record of $109.5 billion in the pre-pandemic year of 2019.
Dublin, Ireland & Shorewood, Wisconsin, 31 October 2023: CarTrawler, the leading B2B provider of car rental and mobility solutions to the global travel industry, and IdeaWorksCompany, the foremost consultant on ancillary revenue, project airline ancillary revenue will increase to $117.9 billion worldwide for 2023, compared to $102.8 billion for 2022 and well above the previous $109.5 billion record in 2019. The CarTrawler Worldwide Estimate of Ancillary Revenue represents an increase largely built on 2023 passenger growth and increasing market share gains by low cost carriers.
Ancillary revenue continues to be a consistent and predictable revenue driver for airlines in the face of unpredictable fare price fluctuations. Although the global airline industry is yet to fully recover post-Covid and return to the heights of 2019, 2023 is expected to see ancillary revenue reach a record high of $117.9 billion worldwide – up from the previous record of $109 billion in 2019 – demonstrating the increasing importance for airlines to identify additional revenue streams.
Low-cost carriers continue to have the edge on driving ancillary revenue streams, accounting for approximately 31% of market share in this area. However, we are increasingly seeing US airlines gaining momentum with the successful roll out of loyalty programmes and frequent flyer benefits. I expect airlines in Europe and the rest of the world are taking note of this development and evidence of the real returns it’s bringing in terms of yield.
As we see passenger numbers continue to rise, we expect airlines to continue to pivot and devise new ancillary revenue streams. Within our own partner base at CarTrawler, we’re seeing greater demand for the inclusion of car rental services in loyalty programmes, so airlines and hotel groups can reach a wider customer base with the most relevant rewards. Next year, we expect this area of our business to expand further as we continue to invest and deliver on our company strategy, by enhancing our proposition through innovation.
Aileen McCormack, Chief Commercial Officer at CarTrawler
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