The latest airline ancillary revenue tome is out and yes, you guessed it, airlines continue to see significant gains with some reaping more than a third of total revenue from these additional services.
Tnooz touched on findings from the summary of the IdeaWorks Company survey back in July with some interesting points around how the definition of ancillary is changing to allow for developments such as fare bundles.
Some of the detail from the full report, sponsored by CarTrawler, is worth a look just to see how much the top carriers are earning per passenger as well as expressed as a percentage of revenue.
For example, while the top five earners are the likes of United Airlines, American Airlines, Delta, Air France-KLM and Ryanair – it is only the Ireland-based carrier that makes the top five when it comes to ancillary revenue as a percentage of the total.
And, it is the low-cost carriers that dominate when it comes to ancillary sales as a percentage of total revenue:
- Spirit 38.7%
- Wizz 33.7%
- Allegiant 32.4%
- Jet2.com 28.%
- Ryanair 24.6%
On a revenue per passenger basis some of the same names appear in the top five as well as a few new ones:
- Jet2 $56.28
- Spirit $52.35
- Qantas $50.16
- Allegiant $45.16
- Air Asia X $43.22
It should be noted that Qantas is said to glean much of its ancillary revenue from its frequent flyer program.
Read full article at: Tnooz