Finding the Path to Fix Airline Retail
It’s hard to believe we are nearing the 24th anniversary of airline websites – Alaska Airlines sold the first air travel ticket online in December 1995. Fast forward to today, airline websites still promote two core functions: transactions and information retrieval. At present, airline websites are little more than cash registers surrounded by shelves of merchandise. This report encourages airlines to move from a transaction focus to become robust retailers of travel.
Becoming the “Amazon of Travel” Should Not Be a Goal for Airlines
CarTrawler-sponsored analysis shows airlines how to stop treating air travel as a commodity and dominate the travel planning process. It’s hard to believe we are nearing the 24th anniversary of airline websites – Alaska Airlines sold the first air travel ticket online in December 1995. Fast forward to today, airline websites still promote two core functions: transactions and information retrieval. At present, airline websites are little more than cash registers surrounded by shelves of merchandise. This report encourages airlines to move from a transaction focus to become robust retailers of travel.
Non-ticket revenues account for more than 10 per cent of airline earnings
Airlines generated more than $55.7 billion in revenues last year selling everything but airline tickets, according to a report from B2B travel technology platform CarTrawler and ancillary revenue strategists IdeaWorksCompany. The yearbook and ancillary revenue guide included data on non-ticketed income from 76 airlines and states that such revenues have “remade the business models of the global airline industry.”
Airlines Reached 52 Billion Francs Through Additional Sales
Travelnews – Switzerland (This article was published in German)
Das Geschäftsmodell der Airlines hat sich grundlegend verändert. Zu diesem Schluss kommt die Idea Works Company nach der Untersuchung der Zusatzumsätze von 154 Fluggesellschaften weltweit. 2008 veröffentlichte das Unternehmen Idea Works Company ihr erstes CarTrawler-Jahrbuch über die ausserhalb des reinen Beförderungspreises generierten Umsätze von Fluggesellschaften. Damals wurden 23 Airlines detailliert mit ihren Zahlen aufgelistet und die Buchbarkeit von zusätzlichen Leistungen wurde als «einen jungen und fragilen Trend» eingestuft. Nun ist die Ausgabe 2019 mit Ausweisung detaillierter Zusatzumsatzzahlen von 76 Fluggesellschaften erschienen und zeigt, dass sich das Geschäftsmodell der Flugbranche massiv verändert hat.
2019 CarTrawler Ancillary Revenue Yearbook Shows $55.7 Billion in Extra Revenue for 76 Airlines
With 76 airlines, the 2019 edition of the CarTrawler Ancillary Revenue Yearbook by IdeaWorksCompany has become a United Nations-like directory filled with airline listings from every continent with the exception of Antarctica. IdeaWorksCompany published the first ancillary revenue guide in 2008 and a grand total of 23 airlines were found to disclose ancillary revenue. The introduction to the report described ancillary revenue as “a relatively young and fragile trend.” Eleven years later, the 2019 edition declares that ancillary revenue has remade the business models of the global airline industry.
Click here for Top 25 Ancillary Revenue Airlines Graphic (JPG file)
2019 CarTrawler Ancillary Revenue Yearbook
IdeaWorksCompany researched financial filings made by 154 airlines all over the world. It’s the biggest Yearbook ever with 140 pages and 76 airlines disclosing qualifying revenue activity. Now available free online, the 2019 Yearbook provides a detailed global review of a crucial revenue source that delivers a jumbo $7.2 billion for American Airlines, 29% of sales for AirAsia, and $18.47 per passenger carried by the Lufthansa Group. The $55.7 billion worldwide total represents 10.7% of all revenue for the 76 airlines in the survey.
If you prefer to read a printed version of the Yearbook, these can be ordered from Amazon. The price you pay is the cost of printing, along with taxes and delivery. The Yearbook is available at Amazon.com or you can search your local Amazon Marketplace using this ISBN: 1695413962.
Click here to view at Amazon.com
Airlines’ Drive To Grow Extra Fees And Services Is Paying Off Big — For Them
Sixteen out of every $100 that American Airlines collected from its customers in 2018 came from the sale of something other than seats on a plane, according to a recent study from IdeaWorks. At United it was $14 out of every $100 in revenue. Delta got $12.50 out of every $100 it was paid for things other than a ticket. Meanwhile maverick Southwest Airlines, the granddaddy of low cost/low fare carriers, outdid its conventional rivals by scoring $18 out of every $100 of revenue last year from the sale of services beyond a basic flight ticket.
Top Ten Airlines Generated $35.2 Billion from Ancillary Revenue in 2018
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, 2018 Top 10 Airline Ancillary Revenue Rankings.
2018 Top 10 Airline Ancillary Revenue Rankings
CarTrawler-sponsored analysis shows ancillary revenue continues steady advance by every measure, and asks the question, can too much of a good thing be a bad thing? 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. Of the nearly 150 airlines reviewed, 70+ reveal figures related to ancillary revenue.
Airline award seats cheaper, easier to find. Wait. What?
The 2019 study of airline award travel by IdeaWorks Company found that not only has free seat availability improved this year compared with 2018 on most carriers, but that over the past five years – i.e., since dynamic award pricing started to kick in – the average mileage/point cost of an economy class reward ticket on major U.S. airlines has declined significantly.