The analysis sponsored by CarTrawler shows that revenues from complementary services are constantly growing in every way and raises a question: the good, if it is too much, can it become bad?
Every year, IdeaWorksCompany looks for publications of financial results that meet the requirements to be considered as revenue from complementary services of airlines around the world. All annual reports, presentations to investors, financial press releases and appointments attributed to senior executives are considered sources with regard to the data collection process.
These results are included in the new report, Classification of the ten airlines that have achieved the most revenue from complementary services in 2018. Of the almost 150 airlines analyzed, more than 70 made public figures related to revenue from complementary services. The following information is a sample of the 2018 financial results present in the report:
In 2007, the ten leading airlines, classified according to their total income from complementary services, generated USD 2100 million. If we move quickly to the financial results of 2018, we observe that the figure reached by the top ten airlines has multiplied by more than 16.
In Europe and Russia, Wizz Air generated the highest percentage of revenue with 41.1%; in America, Viva Aerobus with 47.6%, and in Asia and the South Pacific, AirAsia with 29%. In the Middle East / Africa region, there is no airline among the ten with the highest income for these services.
As a whole, the best-performing airlines based in the United States earned revenue of more than USD 17.5 billion thanks to frequent flyer programs, which translates into an average of USD 25 per passenger.
Main “complementary service income per passenger,” mostly for activities on demand, by region of the world: Jet2.com USD 43.91 (Europe and Russia), Spirit USD 50.94 (America) and Virgin Australia 34, 74 USD (Asia and South Pacific). In the Middle East / Africa region, there is no airline among the ten with the highest income for these services.
“The exponential growth in revenue from complementary services among airlines is another demonstration that the flight experience goes far beyond the flight itself. Customers want to have options for each part of the trip and need a single point of purchase that offers them a door-to-door service and not just from airport to airport.
It is essential that airlines are involved in the entire travel process and that they offer customers everything they need, regardless of the country where they are. Mobility is key in the tourism market; airlines must take advantage of the opportunity they have in the pre-purchase moment to increase revenues in this market by one billion USD and not fall behind their competitors, ”says Aileen McCormack, commercial director of CarTrawler.
To see the results of the ten main airlines according to three different categories (total revenue from complementary services, by percentage in total revenue and per passenger), visit IdeaWorksCompany.com or CarTrawler.com, where you can download the new 15-page report.
The result of the more than 70 airlines that have released their data will be published in September 2019 in the XII CarTrawler Supplementary Services Revenue Yearbook conducted by IdeaWorksCompany (more than 100 pages). A complementary press release, scheduled for November 2019, will use these results to extrapolate the total revenue from complementary services generated by 180 airlines worldwide.
You can download the report of the Classification of the ten airlines that have obtained more revenue for complementary services in 2018 at this link: https://www.cartrawler.com/ct/media/2019/07/2018-Top-10-Airline -Ancillary-Revenue-Rankings-.pdf? Utm_source = press-release & utm_medium = email & utm_content = top-ten-ancillary-18 & utm_campaign = ancillaryseries