Ancillary revenue – coming soon, around the world

The ancillaries landscape Ancillary revenue generation has spread from low-cost and US carriers to full service carriers worldwide and become an increasingly important source of revenue. Airlines can now lower their base fares to offer more competitive prices to customers. Consumers can then tailor their travel with How ancillaries are changing the economic landscape for airlines Europe Asia / Pacific optional services according to their budget. Ancillary revenue estimates for 2011 $ bilion $6.3. billion Africa / Middle East North America $1.4 billion billion Global revenue total: $32.5. 43.8% billion Latin America /Caribbean increase from 2010 $0.8. billion 30% Ancillary revenue components Other services www.ww (eg onboard meals, WIFI, Fre hotel The US major airlines continue to produce a commanding share of global ancillary revenue. In their case, ancillary revenue components fall as: bookings etc) WiF wwwww I 50% 20% Frequent flyer point sales Baggage fees Ancillary service categories include A la carte Commission-based Frequent flyer Advertising > Onboard food and beverage sales > Checking baggage / excess baggage > Assigned seats / seat upgrades > Access to VIP lounges > Priority check-in and screening > Early boarding benefits > Onboard entertainment systems > Wireless internet access > Hotel accommodation > Sale of miles or points HOTEL > Revenue generated from the inflight magazine sale commission to program partners: > Advertising sold in or on aircraft, loading bridges, $! gate areas, airport lounges > Car rentals sale Hotel chains and car rental companies, commission co-branded credit cards, online malls, > Travel insurance retailers, > Fee-based placement of sale commission Wi Fi communication consumer products and samples services Data based on the financial data disclosed by 203 airlines worldwide. Of the 203 airlines, 47 reported revenue details identifying ancillary activities. Airlines which are privately owned and don't disclose financial results are not included in this analysis. Source: The Amadeus Worldwide Estimate of Ancillary Revenue by IdeaWorks