Travel Agent Central
Airline Ancillary Revenue Soars to $32.5 Billion
As every travel agent knows ancillary revenue has become a crucial component in the global airline industry’s profit toolbox, making Amadeus’ new estimates of ancillary revenue especially pertinent. Amadeus’ new analysis notes that the $32.5 billion contributed by ancillary revenue has lifted the airline industry from a loss-making position and continues to provide a very effective hedge against runaway costs, including fuel bills. The Amadeus Worldwide Estimate of Ancillary Revenue for 2011 is the second year Amadeus and partner IdeaWorks have undertaken the task of calculating global ancillary revenues.
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Travel Agent Central
Airlines in Middle East must focus on ancillary revenues
Middle East airlines will need to increase extra charges for food, second checked bags, choosing seats and WiFi on board to help boost profits at a time of spiralling oil prices and political unrest, a market expert said.
New York Times
Those Ancillary Fees Aren’t So Ancillary Now
. . . airline consultant IdeaWorks, found that global airline ancillary revenues totaled $21.5 billion last year, double what they were in 2008. The report said that as airlines devise new fees, “ancillary revenue has become an enduring part of airline income statements.”
Airlines Take In $22 Billion from Add-On Fees and Partnerships
Yes, airlines are hurting because of increasing fuel prices and issues involving sleeping air traffic controllers, but a study (PDF) by Wisconsin-based IdeaWorks reveals that they’re making up for it in other ways.
Wall Street Journal
For Frequent Fliers, a Ranking of the Stingiest Airlines
Best among U.S. carriers: Southwest Airlines Co., which had award seats available for 99.3% of the queries made, and jetBlue Airways, which offered seats 79.3% of the time. Southwest and jetBlue both use points instead of miles, and IdeaWorks Co., the consulting firm that conducted the study, searched for award seats available at 25,000 points, the equivalent to standard awards at other airlines.