Airlines post major growth in ancillary revenue
The airline industry experienced a double-digit increase in ancillary revenue last year, according to the preliminary results of the Amadeus Guide to Ancillary Revenue by IdeaWorks.
The financial reports of nearly 100 carriers were taken into consideration for the report and the growth – estimated at 43% compared to 2008 figures – highlighting the importance of ancillary revenue for all airlines - from major to small - worldwide to regional – LCC to full service.
Ancillary services can include baggage fees and food sold onboard aircraft, commissions from the sale of hotel accommodations, car rentals, and travel insurance at airline websites, and partner revenue generated by frequent flier programmes.
Philippe Chérèque, Executive Vice President Commercial, Amadeus, the sponsor of this analysis of ancillary revenue and the upcoming 3rd edition of the Guide, commented: “Amadeus is fully committed to helping airlines maximise revenues and profits and deliver unmatched levels of customer service with a comprehensive and multi-channel ancillary services solution.”
He continued: “This month we have announced major milestones to support this initiative including the launch of our comprehensive EMD solution with Finnair and an extensive pilot of a la carte pricing within the travel agency and direct channels with Corsairfly.”