A clock with headphones24/7 Support50by5050by50addressPerson wearing headsetAgent1\,300 car rental agents at 30\,000 locationsGlobe surrounded by peopleAjax booking engineWrenchAjax engineerAjax EngineerAncilliaryAncilliaryPiece of paper with the tick symbolApplication formApplication Form PartnerApplication Form PartnerTrophyAward winningBrand TeamBrand TeamMug + CrossiantBreakfastIcon of a BusBusImage of a calendarCalendarCancel BookingCancel BookingIcon of a CarCarChange CarChange CarChange DetailsChange DetailsChange LocationChange Locationchess pieceChessCustomer SupportCustomer SupportBikeCycleData Quality TeamData Quality TeamEuro symbolDynamic pricingEmailemailFacebookThe Facebook LogoWeightFitnessMultiple cars beside each otherFleet of carsfolderFolderFootballFootballGallery IconGallery IconGrad ProgrammeGrad ProgrammeGraduation programme year 1Graduation programme year 1Graduation programme year 2Graduation programme year 2heartHeartInternational brandsInternational brandsTwitterThe LinkedIn LogoTwo map markers indicating locationsLocationMagazinesMagazinesEnvelope that looks like it's movingSend mailBaby PramBaby PramMedia centerMedia CenterBrainMindfullnessSpeech bubble with language symbolMultilanguageMagic wandNo installationIcon of a OfficeOfficeOne year selectionOne year selectionComputer screen with sun and airplaneOnline bookingOptional ExtrasOptional ExtrasTwo hands shakingPartnerPhonePhonePPC TeamPPC TeamPiggy BankPRSA IconRevenue Management TeamRevenue Management TeamMultiple computer and mobile devicesSales channelPaper and an envelopeService levelSince 2004Since 04Graduation HatStudy LeaveSupplier Management TeamSupplier Management TeamIcon of a TaxiTaxiTaxsaverTaxsaverIcon of a TramTramThe Twitter LogoTwitterUmbrellaUmbrellaUser Experience TeamUser Experience TeamDiamondValue businessView RentalView RentalThe Whatsapp LogoWhatsappyogaYoga
Previous Page

80% of Leading Network Airlines Rely on a la Carte Fees from Standard Seat Assignments

Big global airline brands such as Air Canada, Air France, American, Cathay Pacific, Emirates, and Singapore generate ancillary revenue from advance seat assignment across their entire networks.

Dublin, Ireland & Shorewood, Wisconsin, Wednesday, 08 June 2021:  For many airlines, revenue from seat assignment sales has moved up the income statement from a minor presence to a strong #2 spot.  For some, this can be a billion-dollar result, and for every other airline it’s a multi-million-dollar business.  Seat Assignment Fees Firmly on Airline Radars is sponsored by global travel tech provider CarTrawler and was released today.  The IdeaWorksCompany 16-page analysis describes the methods deployed by airlines to encourage consumer acceptance and recommends four tools to maximize seat assignment revenue. 

Key findings from the report:

  • More than half of leading airlines offer basic economy style fares which require payment of a fee to check a bag and very often for pre-assigned seating.
  • Southwest Airlines is unique among leading airlines for not offering seat assignments, instead allowing passengers to choose seats as they board aircraft.
  • Alaska Airlines breaks from US network airline practice by offering a limited number of pre-assigned seats to its saver fare (basic economy) travelers.
  • Seat assignment revenue disclosures were found to range from $6.63 per passenger on Spirit to $0.62 per passenger on Jin Air among LCCs.
  • Ryanair accommodates families by providing no-charge seat assignments for children when the adult pays a modest €4 to €6 fee; Singapore waives all standard seat fees for itineraries with children.

“As we emerge from the pandemic, our data insights tell us that ancillary revenue is taking on even more importance,” said Aileen McCormack, Chief Commercial Officer at CarTrawler. “More than ever before, customers will pay to travel in comfort and safety, and will prioritise airlines based on how well they can meet their needs. Seat assignment is a critical part of an airline’s ancillary revenue strategy, but for maximum benefit, airlines must complement this with a memorable and seamless customer experience across the board.”

The report includes a table summarizing the standard seat assignment fee policies for 20 top carriers.  The full report is available to view at https://ideaworkscompany.com/reports/