Airline ancillary revenue to reach £22bn

Airline ancillary revenue to reach £22bn

Airline ancillary revenue is expected to reach USD36.1 billion (GBP22.4bn) this year worldwide, according to new figures.

Statistics from IdeaWorksCompany and Amadeus estimated there will be a GBP2.4bn or 11% boost in ancillary revenue this year compared to 2011, taking up 5.6% of the global airline revenue. Splitting the results between various types of carriers, easyJet was amongst the ‘ancillary revenue champs’ and set to see the largest revenue increase, while US carriers dominate the share of the ancillary sales market with 34.3%.

Revenues are now expected to pick up as more airlines include their ancillary products on online booking channels and GDS.

“The majority of the 11.3% increase can be attributed to increased passenger revenue posted by airlines all over the globe. Low cost carriers will also contribute to the increase as they boost their ancillary revenue to higher levels through more products and better marketing,” explained Jay Sorensen, president of IdeaWorksCompany.

“The next surge of activity will occur when the sale of optional extras becomes more prevalent in the automated booking systems used by travel agents. Look for airlines to become better retailers through all distribution channels during the next three years,” he added.

Gary Marshall
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Gary Marshall
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