2017 Top 10 Airline Ancillary Revenue Rankings
CarTrawler-sponsored analysis shows ancillary revenue has gone beyond tilting the bottom line toward profitability and is now a core component of revenue for fiscally healthy airlines. Every year IdeaWorksCompany searches for disclosures of financial results which qualify as ancillary revenue for airlines all over the globe. Annual reports, investor presentations, financial press releases, and quotes attributed to senior executives all qualify as sources in the data collection process.
American and Turkish Airlines Show Dramatic Increase in Reward Seat Availability with Southwest Staying on Top
The 9th annual Reward Seat Availability Survey ─ sponsored by CarTrawler ─ also finds survey newcomers Norwegian and China Eastern ranked in the top 8 among 25 airlines. The CarTrawler Reward Seat Availability Survey answers the question, “How easy is redemption for the basic and most popular reward type offered by the world’s top airlines?” The 25 carriers in the survey remained almost the same as 2017, with China Eastern, Norwegian, and WestJet as newcomers for 2018.
Click here for 2018 Worldwide Reward Survey FAQs.
Click here for infographic summary (JPG file) of key findings.
LCC a la Carte Goes Mobile: A Review of the Top 15 Low Cost Carriers
The latest report from IdeaWorksCompany reviews the mobile applications offered by the world’s largest LCCs as measured by passengers flown. Theoretically, the mobile applications evaluated should represent state-of-the-art examples of ancillary revenue excellence. After all, the LCC category should naturally excel in the art of ancillary revenue. This report is part of the CarTrawler Airline Intelligence Series for 2018.
European Airlines Lead 2017 a la Carte Revenue Estimate at $19.4 Billion with Asian Carriers 2nd at $15.8 Billion
The CarTrawler Global Statistics of a la Carte Revenue provides regional details, comparisons to 2010 revenue numbers, and a first-ever baggage revenue estimate. A la carte activity is a significant component of ancillary revenue and consists of the amenities consumers can add to their air travel experience. These include fees paid for checked baggage, assigned seats, buy-on-board meals, early boarding, and onboard entertainment. Of these, the revenue from checked baggage looms large with $23.6 billion in estimated sales for 2017.
Airline ancillary revenue projected to be $82.2 billion worldwide in 2017
The CarTrawler global estimate forecasts 22% increase above 2016, with $57 billion of the total composed of a la carte fee activity. IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, the leading provider of online car rental distribution systems, project airline ancillary revenue will reach $82.2 billion worldwide in 2017. The CarTrawler Worldwide Estimate of Ancillary Revenue represents a 264% increase from the 2010 figure of $22.6 billion, which was the first annual ancillary revenue estimate.
Click here for an infographic summary (JPG file) of key findings.
2017 Top Merchandising Innovations to Delight Passengers and Boost Profits
The 2017 merchandising report, released today by IdeaWorks and CarTrawler, describes how innovation in other industries, and within the travel business, can help airlines delight travelers and boost profits. The following are six examples from the report: Allegiant’s new Florida condo resort, Worldwide connections by easyJet, Delta’s baggage tracking app, Tui’s (Netherlands) mobile solution for buy on board, Jeju Air’s sleeping seat package, and the Clube Smiles subscription program by GOL.
2017 CarTrawler Hotel Reward Payback Survey
During August 2017, IdeaWorksCompany conducted 1,350 reward queries for key hotel brands in six global frequent guest programs: Best Western Rewards, Hilton Honors, IHG Rewards Club, Marriott Rewards, Starwood SPG, and Wyndham Rewards. For each query, the lowest reward price in points was recorded along with the corresponding room price in US dollars. The value provided by points was adjusted to consider the different rates of point accrual for the programs.
2016 Top 10 Airline Ancillary Revenue Rankings
Every year IdeaWorksCompany searches for disclosures of financial results which qualify as ancillary revenue for airlines all over the globe. Annual reports, investor presentations, financial press releases, and quotes attributed to senior executives all qualify as sources in the data collection process. These results are contained in the new report, 2016 Top 10 Airline Ancillary Revenue Rankings. Of the 138 airlines reviewed, 66 reveal figures related to ancillary revenue.
Southwest is Tops in Annual Reward Rankings, But Survey Shows Fewer Reward Seats Worldwide
The 8th annual Reward Seat Availability Survey ─ now sponsored by CarTrawler ─ also finds
Alaska Airlines has best reward payback among major North American carriers. The steady improvement in airline reward seat availability since 2010 ended with the results from this year’s CarTrawler Reward Seat Availability Survey. Last year 76.6% of reward queries provided access to a saver-style reward seat; this dropped to 72.4% for 2017. The story for US-based consumers is generally positive, while frequent flyer members elsewhere in the world are seeing moderate to significant declines in reward seat availability.
You may also download this FAQ document:
FAQ for 2017 Worldwide Reward Survey
Cash is King: Revenue Now Rules Frequent Flyer Program Accrual
This report assesses how frequent flyer programs have become very revenue aware in the distribution of miles, points, and rewards to their members. IdeaWorksCompany researched the accrual and reward methods of the world’s largest 25 airlines and their frequent flyer programs. The list has airlines from all over the globe, including alliance members, non-aligned airlines, and low cost carriers.