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.
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)
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.
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
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. This distinctive style also defines retail-savvy ways to boost revenue for airlines, which are described in a 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 Airlines’ Ancillary Revenue Initiatives are Among the Most Effective and Innovative in the World
Allegiant is based in Las Vegas, but it has never relied upon the notion of “luck” as part of its business strategy. The airline was born in 1997 and immediately challenged all the rules of how to start an airline. Allegiant maintains its industry leading margins by distancing itself from competitors, and as you will read in this latest report, by being very different from everyone else. This distinctive style includes innovative ways to generate ancillary revenue
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).
Airlines ’Round the World Embrace the Need for Change in the Ancillary Revenue Services They Create
The internet has furthered the evolution of retail by determining which companies perish, survive, or thrive. It’s a story that parallels much of what has happened in the airline business. The common theme is this: Companies that embrace change enjoy a better chance of success. Those clinging to the past risk others taking their place. The latest report by IdeaWorksCompany examines the changes occurring in merchandising, what lessons can be applied to the travel business, and how airlines are becoming better ancillary revenue retailers.