Airlines will earn 17% more from ancillaries this year
Company revenues from ancillary services (ancillaries) will reach 40 billion euros this year, up 17.2% from 2013, according to a study by Idea Works Co. and Car Trawler. This concept already accounts for 6.7% of its turnover and is double the volume of 2010.
Of the amount expected for this year, just under half (43%) corresponds to the activities other than the mere transport of travelers, such as commissions obtained through hotel reservations, the sale of frequent flyer programs or the provision of a la carte services. The remaining 57% (some ?22.8 billion) will come from optional services, such as the onboard sale of food and beverages, baggage check-in, seat allocation
The traditional airlines, a total of 112 of the 180 analyzed, are the biggest contributors to this growth. Approximately 41% of the ?14 billion year-on-year increase is attributable to the efforts of these airlines to increase their ancillary services revenues.
The report notes that U.S.big U.S.-based carriers generate a high volume of revenue from ancillary services, totaling ?12.3 billion, with a share of 30.9% of the global total. The baggage charges account for 25% of its ancillary billings.
However, the leading carriers in ancillary service revenues include AirAsia X, Allegiant, Pegasus and Wizz Air, with a 23.6% increase in billings.
For their part, the low-cost airlines will generate ancillary revenues of ?6.1 billion, up 12.1%, derived from a combination of a la carte services. These include IndiGo, Jazeera Airways, Jeju Air, JetBlue, Norwegian and Spring Airlines.