CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany compiles disclosures from 63 airlines worldwide.
September 14, 2015, Dublin, Ireland – IdeaWorksCompany researched financial filings made by 130 airlines all over the world, 63 of which disclosed qualifying revenue activity, to reveal that ancillary revenue reported by these airlines was $38.1 billion for 2014. That represents a more than $35.6 billion increase since 2007, and the 2014 number is up 20.9% over $31.5 billion from 2013.
The 2015 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany, now available free online, provides the most detailed global assessment of a bottom-line-booster that can represent 38.7% of a carrier’s revenue, as it does for Spirit Airlines in the US, or $56.28 per passenger for Jet2.com in the UK, and $5.86 billion for global behemoth United Airlines. The full 98-page report examines 63 airlines that disclosed revenue in financial filings during 2014 from sources such as frequent flier miles sold to partners, fees for checked bags, and commissions from car rentals.
The Yearbook’s individual airline listings clarify the type of ancillary revenue activity for each carrier. Some airlines are vague in their descriptions and merely provide an “ancillary revenue” line on the income statement without further details. Some of the carriers don’t specifically list ancillary revenue, but describe qualifying activities such as “revenue from the sale of frequent ﬂier miles to partners” or “revenue from onboard cafe sales.” Other airlines, such as AirAsia, Hawaiian, and Spirit, provide robust details and seem very proud of their ancillary revenue accomplishments.
New for 2015 is a list of the a la carte items sold through Amadeus, Sabre, and Travelport for each of the 63 disclosing airlines. For example, optional extras for baggage, seat assignments and meals can be booked through Sabre-equipped agencies on Airberlin, and seat assignments and baggage can be booked for Qantas through the Amadeus system. The information for these entries was collected from GDS websites or materials provided by the GDS; IdeaWorksCompany is not responsible for the accuracy or veracity of the claims made by these vendors.
The following examples illustrate the ancillary revenue details found in the Yearbook:
- Lufthansa’s Miles & More frequent flier program contributed income in excess of $90 million which more than doubles the 2013 amount.
- Ryanair believes 25% of its passengers are business travelers, and up to 9,000 a day are buying its Business Plus fare bundle.
- Volaris, a low fare airline in Mexico, generated more than $3.5 million from the sale of memberships in its V-Club, which provides access to members-only low fare deals.
- Vueling’s ancillary revenue per passenger was $15.45 during 2014. But the average for bookings made exclusively via direct channels (such as the website) leaps to $29.19.
To download the full report or the six-page summary please click this link:http://info.cartrawler.com/AncillaryYearbook2015_EN
CarTrawler’s connects business and leisure customers and online travel retailers with more road and rail transport solutions than they will find anywhere else. Over 70 international airlines and 2,000 travel retailers around the world trust CarTrawler to provide their customers with real-time access to over 1,500 leading and independent car rental agents, coach transfers, rail networks and chauffeur drive services at 30,000 locations in 174 countries. CarTrawler also owns and operates the Cabforce, Holiday Autos and Argus Car Hire brands. The company headquarters and Customer Centre of Excellence are located in Dublin, Ireland, with additional offices in Boston, London and Helsinki. CarTrawler is private equity backed by BC Partners and Insight Venture Partners. For further information, please visit www.cartrawler.com
IdeaWorksCompany was founded in 1996 as a consulting organization building brands through innovation in product, partnership and marketing, and building profits through financial improvement and restructuring. Its international client list includes airlines and other travel industry firms in Asia, Europe, the Middle East, and the Americas. IdeaWorksCompany specializes in ancillary revenue improvement, brand development, customer research, competitive analysis, frequent flier programs, and on-site executive workshops. Learn more at IdeaWorksCompany.com.
For further information, please contact: Joe Farinella, Director of Marketing, CarTrawler. Telephone: +353 1 218 3855, Email: firstname.lastname@example.org