The survey covers airlines that disclosed revenue from activities such as frequent flyer points sold to partners, fees for assigned seating, and commissions from hotel bookings. The Yearbook includes a list of the à la carte items sold through Amadeus, Sabre, and Travelport for each of the 73 airlines. For example, optional extras for baggage, seat assignments, and sports equipment can be booked through Travelport-equipped agencies on easyJet, and baggage, lounge access, and seat assignments can be booked for Royal Jordanian through the Sabre system.
“The largest single source of à la carte revenue remains checked baggage, with assigned seating a distant second. These are tried and trusted sources of revenue. But savvy airlines know they have more opportunities to serve their customers better. That includes boosting mobile web booking capabilities, implementing dynamic pricing methods, and reaching to capture more travel spending, particularly from hotel, sightseeing, and car hire,” said Michael Cunningham, senior vice president of Distribution Strategy at CarTrawler.
The report uncovered the following great examples of added revenue generation through ancillary services:
• Ryanair noted big increases in the number of customers paying for allocated seating (23 per cent in FY 2017 to 50 per cent in FY 2018) and priority boarding (4 per cent in FY 2017 to 20 per cent in FY 2018)
• AirAsia disclosed the distribution of other revenue sources for 2018: baggage 40 per cent, onboard retail sales (Big Duty Free) 15 per cent, cargo 15per cent, Big Pay digital wallet 8 per cent, FlyThru connections and Woki onboard Wifi 8 per cent, onboard café 7per cent, and seat selection 7 per cent.
• American realises a 50 per cent upsell rate to more expensive branded fare products, with the current basic economy and premium economy project having revenue potential of $1 billion.
• GOL claims the SMILES loyalty program was responsible for issuing approximately 54 per cent of total miles accrued in Brazil, which is up substantially from 29 per cent at the end of 2013.
TTN is the most established trade publication in the Middle East distributed on a controlled circulation basis to members of the travel and tourism industry.
Published monthly by Al Hilal Publishing and Marketing Group, the region’s foremost trade publisher, TTN is aimed at professionals in the industry, from travel agents to airline and hotel personnel.
TTN provides in-depth and extensive coverage of relevant issues in the Middle East and North Africa as well as in other parts of the world. Travel related news, analysis, and new appointments together with information on up-coming exhibitions, marketing and promotional campaigns are presented in an innovative and striking colour tabloid.
Every issue also contains a collation of international and regional news and topical features of interest to readers.