Ancillaries are an increasingly important part of commercial aviation revenue streams. Our inaugural infographic breaks down data from IdeaWorksCompany to illustrate the top performing airlines.
Historically, fare-based revenue has been the primary focus for airlines, but times are changing. The low-cost carrier method of a la carte pricing and unbundling has proven to be successful, and thus, has been adopted by a wider array of airlines in an effort to offer consumer choice and maximize total revenue.
Products such as seat assignment, baggage, meal allotment and priority boarding have given airlines the ability to sell more and look beyond the initial booking fare.
As Chris Anthony, Managing Director, Kambr Advisory puts it, “with the unbundling revolution, we know that each booking opportunity must be assessed not just for its fare level, but for the sum of its follow-on revenue component potential."
The top ten ancillary revenue performers compiled by IdeaWorksCompany (by total USD) totals $35.2 billion. In comparison, the top ten in 2007 totalled just $2.1 billion, illustrating the sharp rise of ancillary revenue sales.
Check out the infographic below to see the full breakdown of top ancillary revenue performers.