“’Resolute’ is a word that perfectly describes the determined and unwavering force known as the ancillary revenue movement,” is the introduction of the 2017 Top 10 Airline Ancillary Revenue Rankings, a new report by IdeaWorksCompany, sponsored by CarTrawler.
According to IdeaWorks, this is because ancillary revenue has grown every year since it began searching airline financial documents in 2007. Then the top 10 airlines, as rated by total ancillary revenue, generated US$2.1 billion. Fast forward to 2017, the top 10 airline total ancillary revenue has jumped to US$29.7 billion (see table below).
“Passenger fares may dip and climb, but ancillary revenue has grown steadily in its contribution to the industry’s bottom line,” it added.
The report also highlights Europe’s top ancillary revenue producers that include easyJet, Jet2.com, Ryanair, Volotea, Wizz and WOW air.
Here are a few takeaways from the report (download full report here):
- In 2007 the top 10 airlines, as rated by total ancillary revenue, generated US$2.1 billion. Ten year on, the tally of the top 10 has experienced a 14-fold increase.
- Top “% of revenue” producers by global regions: Wizz Air 41.6% (Europe & Russia), Spirit 46.6% (Americas), and Hong Kong Express 25% (Asia & South Pacific).
- Qantas Loyalty achieved revenue in excess of A$1.5 billion (nearly US$1.16 billion) for fiscal year 2017, at US$98 per member or US$39 per passenger
- Top “ancillary revenue per passenger,” mostly from a la carte activities, by global regions: WOW air US$48.87 (Europe & Russia), Spirit US$50.97 (Americas), and AirAsia X US$33.12 (Asia & South Pacific).
Michael Cunningham, senior vice president of distribution at CarTrawler, said ancillary revenue had become a mandatory component for the revenue mix of all airlines. “The best producing airlines have become expert retailers of travel-related services, which includes the ability to book hotels, attractions and, of course, ground transport.”
• Featured image credit: Aureliy/iStock-GettyImages
