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Airlines Ancillary Services— 2009 Revenues Jump 43 percentJuly 21, 2010 By: George Dooley
IdeaWorks, a consult focused on airline ancillary revenues, and Amadeus, a leading travel technology partner, announced preliminary results of the Amadeus Guide to Ancillary Revenue by IdeaWorks. Early results from an analysis of 2009 financial filings made by 96 airlines indicate ancillary revenue increased $4.23 billion from 2008 to a total of $14 billion for 2009.
The findings show the airline industry’s ancillary revenue tidal wave continued in 2009 with more carriers disclosing millions and billions in ancillary receipts in financial reports, Amadeus says. The 43 percent increase over 2008 also reflects new a la carte fees and commission-based services.
Amadeus reports that, during 2009, ancillary revenue became a crucial component of the revenue mix for all types of carriers – from major to small, worldwide to regional and low cost carriers to full service. Amadeus said the estimates include revenue from a la carte features such as baggage fees and food sold onboard aircraft, commissions from the sale of hotel accommodations, car rentals, and travel insurance at airline websites, and partner revenue generated by frequent flier programs.
“This month we have announced major milestones to support this initiative including the launch of our comprehensive EMD solution with Finnair and an extensive pilot of a la carte pricing within the travel agency and direct channels with Corsairfly,” Philippe Chérèque, executive vice president commercial, Amadeus, commented.
The Amadeus Guide to Ancillary Revenue by IdeaWorks will be available for online purchase September 2010.