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.
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
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.
British Airways Greatly Boosts Reward Seat Availability, and Entire Industry Shows Dramatic Improvement
The 10th annual Reward Seat Availability Survey finds Southwest, JetBlue, Etihad Airways and Turkish Airlines atop the rankings. The IdeaWorksCompany Reward Seat Availability Survey answers the question, “How easy is redemption for the most popular basic reward type offered by the world’s top airlines?” This year’s survey assesses 20 top airlines, with Etihad, Qatar, and Singapore as newcomers for 2019. The net result is better reward seat availability for 2019 compared to 2018. Of the frequent flyer programs surveyed this year, 13 provided better overall reward availability for 2019, with only three programs showing decreased availability.
Click here for 2019 Worldwide Reward Survey FAQs.
IKEA Teaches Everything You Need to Know About Airline Retail
CarTrawler-sponsored report shows IKEA’s merchandising methods are also used by
AirAsia, Air New Zealand, Allegiant, easyJet, Ryanair, and Scoot. IKEA is not an airline, but it is one of the world’s master retailers. The company’s relationship with customers doesn’t depend on pushing transactions. Instead the company seeks to offer “products at prices so low that as many people as possible will be able to afford them.” It has become a global success because it first seeks to meet customer needs. IKEA Teaches Everything You Need to Know About Airline Retail was released today as a free 15-page report sponsored by CarTrawler.
Global Baggage Fee Revenue Jumps to $28.1 Billion
CarTrawler Global Estimate of Baggage Fee Revenue reveals 110% increase from 2014 estimate of $13.4 billion. IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, the leading technology platform providing transport solutions for online businesses, recently estimated ancillary revenue at $92.9 billion worldwide for 2018. This CarTrawler Global Estimate of Baggage Fee Revenue identifies baggage as a $28.1 billion component and provides a worldwide summary of baggage fee policies for 20 top airlines.
Allegiant Flies Its Own Route to Revenue Success
IdeaWorksCompany started tracking ancillary revenue in 2007 and Allegiant has reliably been among the best performers when measured as a percent of revenue or on a per-passenger basis. This success has been attained through a rigorous approach to a la carte sales and travel-related packaging. This CarTrawler-sponsored report describes how Allegiant is mastering the art of a la carte and seeks to capture even more of a consumer’s leisure and entertainment spending
European Airlines Lead 2018 a la Carte Revenue Estimate at $22.5 Billion with Asian Carriers 2nd at $18.8 Billion
IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, the leading technology platform providing full end to end transport solutions for online businesses, recently estimated airline a la carte revenue at $65 billion worldwide for 2018. The CarTrawler Global Statistics of a la Carte Revenue adds regional details and 2014 comparisons to the figures from the earlier November 2018 release. 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.
Airline Ancillary Revenue Projected to Be $92.9 Billion Worldwide in 2018
IdeaWorksCompany, the foremost consultancy on airline ancillary revenue, and CarTrawler, the leading provider of online car rental distribution systems, project airline ancillary revenue will reach $92.9 billion worldwide in 2018. The CarTrawler Worldwide Estimate of Ancillary Revenue represents a 312% increase from the 2010 figure of $22.6 billion, which was the first annual ancillary revenue estimate. Earlier this year, CarTrawler and IdeaWorksCompany reported the ancillary revenue disclosed by 73 airlines for 2017. These statistics were applied to a larger list of 175 airlines to provide a truly global projection of ancillary revenue activity by the world’s airlines for 2018.
Click here for 2018 Worldwide Estimate Infographic (JPG file).
Airline Retail ’Round the World: A Global Tour of Ancillary Revenue Best Practices
Keynote presentation by Jay Sorensen at the 2018 MEGA Event held in Long Beach, California on November 1, 2018. The presentation is in PDF format.