The world’s top ten airlines generate as much as 46% of sales from ancillary revenue, new research reveals.
CarTrawler-sponsored analysis shows a big jump from five years ago, when the same group of airlines generated 10% to 33% from ancillary revenue.
The report by research firm IdeaWorksCompany also found that the top ten carriers generated more than $28 billion in ancillary revenue last year compared with $2.1 billion in 2007.
US carriers United, Delta, American and Southwest bring in the highest levels of revenues from ancillary sales, followed by Air France/KLM, Ryanair, EasyJet, Lufthansa, Qantas and Air Canada – much of it through frequency flyer scheme contributions, with the exception of the Irish and UK-based budget airlines which gain from the likes of online car hire and travel insurance sales.
Jet2.com was among the top producers of ancillary revenue per passenger of $42.46, with US carrier Spirit achieving $49.89 and AirAsia X $34.41.
Wizz Air was found to be top in Europe when calculating ancillary sales as a percentage of total revenue at 39.4%, with Ryanair at 26.8% and Jet2.com at 26%. Spirit topped the table at 46.4% and US rival Frontier at 42.4%
Of the 138 airlines reviewed, 66 revealed figures related to ancillary revenue.
The full results are due to be released in September in the annual CarTrawler yearbook of ancillary revenue by IdeaWorksCompany.
CarTrawler chief commercial officer Aileen O’Mahoney said: “Airlines that want to grow their ancillary revenue need to adapt to their customer’s behaviour.
“The online car rental market is expected to grow at a 9.3% compound annual growth rate between 2016-2020 with mobile sales for car rental showing the most significant growth at 24.2% compound annual growth rate.
“Airlines need to be sourcing the right technology and providing their customers with ancillary products where, and when, they are open to purchasing them.”
