Data analysis from Dublin based CarTrawler and IdeaWorksCompany show global airline ancillary revenues are expected to reach $118bn this year up from $109.5bn pre pandemic.
This figure includes additional fees charged above the basic ticket price, such as baggage fees, priority seating charges, and commissions from related services like hotel bookings or insurance.
CarTrawler and IdeaWorksCompany compiled the ancillary revenues of 125 airlines worldwide to arrive at this conclusion.
The report highlights several reasons for this substantial rise in ancillary revenues.\
- Low-cost carriers now hold a 25pc market share globally and tend to follow an unbundled pricing model, imposing additional charges for various services beyond the flight itself.
- Assigned seat fees are also becoming commonplace, with many full-service carriers adopting this practice.
- Co-branded airline credit cards have played a significant role in boosting ancillary revenues.
Aileen McCormack, CarTrawler CCO said: “Ancillary revenue continues to be a consistent and predictable revenue driver for airlines in the face of unpredictable fare price fluctuations,”
Low-cost carriers remain the frontrunners in driving ancillary revenue streams, accounting for approximately 31pc of the market share in this area.
