Estimated airline a la carte revenue worldwide in 2017 stood at US$57 billion, with European airlines leading at US$19.4 billion followed by Asian carriers at US$15.8 billion.
The estimates from the CarTrawler Global Statistics of a la Carte Revenue released by consultancy on airline ancillary revenues, IdeaWorksCompany, and leading B2B travel technology platform providing multimodal transport solutions, CarTrawler.
The report also adds regional details, comparisons to 2010 numbers, and a first-ever baggage revenues estimate to the projected airline ancillary revenue for 2017.
CarTrawler said in a statement the a la carte activity is a significant component of ancillary revenues and consists of the amenities consumers can add to their air travel experience.
“These include fees paid for checked baggage, assigned seats, buy-on-board meals, early boarding, and onboard entertainment. Of these, the revenue from checked baggage looms large with US$23.6 billion in estimated sales for 2017.”
According to the report, the prevalence of low cost carriers (LCCs) in a region drives the level of ancillary revenues, and a higher concentration of LCCs boosts ancillary revenue and a la carte results.
Commenting on the report Aileen McCormack, CarTrawler’s chief commercial officer, said: “The huge increase of 308% for a la carte revenue since 2010 offers testimony to the growing popularity of the low cost airline model and the a la carte approach to pricing.
“Be it global network airlines like Emirates in the Middle East, ancillary revenue champions such as AirAsia and Ryanair, and even traditional airlines like TAP Portugal, all are becoming better retailers to encourage consumer spending and to boost returns for investors.”
Car hire and hotel booking capabilities also allow airlines to better serve the entire spectrum of consumer travel needs, she added.
Here’s the 2017 Global Regions Snapshot from the report, which demonstrates how a la carte activity varies by region:
