Sales from non-ticket sources in 2019 jumped 20% for the top 10 airlines, while 2020 results show a la carte rates are holding. The 2020 edition of the CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany is the largest ever, with 81 airlines disclosing results. By every measure, 2019 was a year of overwhelmingly good ancillary revenue for airlines – which provided resilience for the challenges of 2020. The yearbook includes tables which rank the 81 airlines by ancillary revenue as a percentage of total airline revenue and dollars per passenger, and for each airline, current year projections are provided.
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COVID-19 Survey of 25 Leading Airlines Identifies Global Use of Ten Strategies to Increase Traveler Confidence
CarTrawler-sponsored research determines face masks required by almost all airlines, with widespread adoption of electrostatic disinfection, temperature checks, and distribution of hand sanitizer. The world’s leading airlines are actively engaged in the process of boosting traveler confidence during the pandemic. The table (also available as a graphic) in this release displays the results of a review of 25 leading network airlines and low cost carriers grouped by global region.
Note: An earlier version of the release and graphic omitted Delta’s blocking of middle seats.
COVID-19 Has Made Baggage and Change Policies Obsolete; Allegiant, Ryanair, and Southwest Represent Alternatives
Travel is returning and airlines have an opportunity to improve the experience for consumers and bring more critical revenue to their bottom lines. The essential elements of baggage policies and change fees had simple beginnings, but over time the quest for more revenue has created a structure poorly equipped for the COVID-19 era. In addition, the pandemic requires new sensitivity when developing revenue-producing plans. This report describes how this can occur for airlines in the categories of change fees, baggage policies, and the overall process of boosting airline revenue.
10 Ways Airlines Encourage Travelers to Return by Creating Confidence in the Time of COVID
Flight Plan 2020: Creating Traveler Confidence in the Time of COVID was released today as a free 17-page report sponsored by CarTrawler and offers recovery advice for the travel industry with examples from Emirates, Etihad, Hilton, Korean Air, United, and Xiamen Airlines. The report is written to help those working at airlines and in the travel industry sort through the issue of traveler confidence and how it can be restored. Individual airlines, hotels, vacation rentals, car hire, airport transfers, and sightseeing companies are already making decisions to ensure the safety of their customers, which will also increase traveler confidence in our industry.
“Change Fees Will Become Even More Unpopular” is One of 8 Ways Travel Will Be Different a Few Months from Now
The pandemic will affect the airline business for years to come, but travel will return because it is an essential element of being human. There are no “opportunities” during this time of trial but we can learn from past economic challenges and global events that have tested the travel industry. This report anticipates the changes that will occur as consumers return to airlines, hotels, and car hire companies.
My love letter to the airline industry during this time of trouble.
Jay Sorensen’s letter to the global airline community: for those at the ticket counter, at the gate, on the plane, on the ramp, in the hangar, and at corporate headquarters.
European Airlines Lead a la Carte Revenue Estimate at $31.5 Billion with Asian Carriers 2nd at $21.1 Billion
The birthplace of airline a la carte revenue—Europe—continues to lead the globe in annual growth for this key sales component. And the world’s fastest-growing air travel market, Asia, is not far behind. IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, the leading technology platform providing end to end transport solutions for online businesses, recently estimated airline a la carte revenue at $75.6 billion worldwide for 2019. The CarTrawler Global Statistics of a la Carte Revenue adds regional details and 2015 comparisons to the figures from the earlier November 2019 release.
Airline Ancillary Revenue Projected to Leap to $109.5 Billion Worldwide in 2019
IdeaWorksCompany, the foremost consultant on ancillary revenue, and CarTrawler, the leading provider of online car rental distribution systems, project airline ancillary revenue will reach $109.5 billion worldwide in 2019, compared to $92.9 billion in 2018. The CarTrawler Worldwide Estimate of Ancillary Revenue represents an almost fivefold increase from the 2010 figure of $22.6 billion, which was the first annual ancillary revenue estimate.
Click here for CarTrawler Ancillary Revenue Estimate 2019 Graphic (JPG file)
European Aviation Conference, Jay Sorensen Keynote Presentation
Jay Sorensen was the keynote presenter for the 2019 European Aviation Conference which was held November 7/8, 2019 in Vienna at the University of Vienna, School of Law. Since 2012, the European Aviation Conference (EAC) has offered a unique meeting place for industry stakeholders, researchers and government officials from across Europe and around the world to discuss timely, policy-relevant issues in aviation with the goal of the seeking insights from best practices and practical solutions to challenges facing the aviation industry. Click below to also view the presentation for the panel discussion which followed the keynote:
European Aviation Conference, Jay Sorensen Panel Slides
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.