Reports

Long Haul Premium: Upper Middle Class ─ for the Upper Middle Class was issued today as a 14-page report.  It includes the results of a review of 20 leading global network carriers regarding their long haul premium economy cabins.  The report describes the trends which support the potential for premium economy to someday deliver more profits than business class. “Premium” has become a post-pandemic buzzword for airlines, and for the travel industry overall.  The word is liberally applied to a wide array of travel products, such as first and business class, airport lounges, luxury hotels, big SUV rental cars, and of course, premium economy.

The CarTrawler worldwide estimate posts 7.7% increase above the previous record of $109.5 billion in the pre-pandemic year of 2019.  CarTrawler, the leading B2B provider of car rental and mobility solutions to the global travel industry, and IdeaWorksCompany, the foremost consultant on ancillary revenue, project airline ancillary revenue will increase to $117.9 billion worldwide for 2023, compared to $102.8 billion for 2022 and well above the previous $109.5 billion record in 2019. The CarTrawler Worldwide Estimate of Ancillary Revenue represents an increase largely built on 2023 passenger growth and increasing market share gains by low cost carriers.

Click here to download the two graphics from the press release as a JPG file.

The 2023 edition of the CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany, released today, describes the 2022 ancillary revenue activities and results for 65 airlines and provides an assessment for the industry as a whole.  This annual publication provides the best single source of information and intelligence on ancillary revenue, a la carte services, and commission-based travel products, for the world’s airline industry.  Ancillary revenue for each airline is presented as total revenue, a percentage of airline revenue, and on a per passenger basis.  The results reflect 2022 disclosed financial activity. The narrative for each airline features disclosures made in financial filings, investor presentations, historical results for 2019-2021, and information gathered from websites. The publication has 103 pages.

Allianz Partners, a global leader in travel protection and consumer specialty insurance, and IdeaWorksCompany, the foremost consultant on ancillary revenue, have released the second edition of The Allianz Partners Big Book of Travel Data by IdeaWorksCompany.  The 2023 publication, which expands on last year’s edition, provides a world of industry data for airlines, hotel groups, car rental companies, and online travel agencies (OTAs), and is collated by alphabetical order, size, region, and more. The 120-page “Big Book” is available free of charge via download at AllianzPartners.com and IdeaWorksCompany.com.  Airline results are presented by airline type (high performing LCCs, low cost carriers, traditional airlines, US major airlines), global alliance, and regions. The publication includes membership statistics for 53 frequent flyer programs and employment totals for 91 airlines. The hotel section of the Big Book presents a unique perspective for industry metrics with estimated room revenue for the individual brands of 10 hotel groups.

IdeaWorksCompany report determines the scale of activity, how fees are implemented, and how this key ancillary revenue source can be improved for airlines and consumers.  The inclusion of seat fees in President Biden’s recent State of the Union address strongly suggests it is time to review the state of assigned seating fees.  The $4.2 billion estimate covers the assigned seat fee revenue generated by eight key US airlines (Alaska, Allegiant, American, Delta, Frontier, JetBlue, Spirit, and United) for their US domestic networks in 2022.  Airlines Assign Big Revenue Priority to Seat Selection was issued today as a 15-page report. It includes the results of booking queries conducted at six US airlines to sample the range of assigned seating fees from the back of the cabin to the preferred zone in front. Methods used by American and Spirit are featured to show distinctions between global network airlines and low cost carriers.

CarTrawler 2022 Global Estimate of Baggage Fee Revenue reveals 39% increase from 2021 figure of $20.9 billion.   IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, leading global B2B provider of car rental and mobility solutions to the travel industry, recently estimated ancillary revenue at $102.8 billion worldwide for 2022.  This CarTrawler Global Estimate of Baggage Fee Revenue identifies baggage as a $29 billion component and provides a summary of baggage fee policies for 20 top airlines.  Baggage fees are now a regular revenue source for airlines in Europe, North America, and Latin America. For global network carriers, these are typically associated with “basic economy” fares; for low cost carriers, baggage fees are typically charged to all consumers.

Click here to download the color graphic referenced in the press release (free to use).

IdeaWorksCompany identifies eight ideas by airlines all over the globe: AirAsia, Cathay, Delta, easyJet, Eurowings, Emirates, Jetstar, United.  The desire to do something new, better, or unique, will almost always create disruption for competitors. Better yet, innovation can also be designed to please passengers and boost revenue. This is something the eight airlines featured in the latest report sponsored by global travel tech provider CarTrawler already know.  Airline Revenue Innovations: A Global Sample of the Coolest Products and Services describes how the carriers in the report are reinventing their services to be distinctive, more profitable, and industry leading.  The report closes with “7 Steps on the Path to Innovation” which offers practical advice to airlines.

IdeaWorksCompany identifies examples from easyJet, Jet2.com, Jetstar, Ryanair, Singapore, and Wizz Air which reveal responsive retailing methods at websites.  Cashiers and clerks just take customer orders. True salespeople identify the individual needs of a customer, and do their best to provide a solution.  This is something the six airlines featured in the latest report sponsored by global travel tech provider CarTrawler already know.  The 12-page Booking Path Magic Converts Consumers report describes how the carriers in the report are enhancing the capabilities of the booking path by making them more responsive to consumers.

New airlines compete by identifying customers who are not well served by larger and established carriers.  This is the secret to surviving as a start-up airline: find an underserved market and apply all the youthful passion and nimble moves you can muster.  That’s how these 10 low cost carriers hope to flourish in a post-pandemic era: Air Premia, Akasa Air, Avelo Airlines, Breeze Airways, Flyr, LIFT, Lynx Air, Norse, PLAY, and Vietravel Airlines.

All operate as low cost carriers, as this is the prevailing model of today’s airline industry.  Ancillary revenue is at the core of this movement because it honors customer choice and delivers the amazing alchemy of low fares and more revenue.  World’s Newest Airlines Embrace Ancillary Revenue at First Flight is a 13-page report sponsored by global travel tech provider CarTrawler and reviews the ancillary revenue efforts of ten airlines that leapt through challenging hurdles during the pandemic.

The CarTrawler global estimate reveals the “double benefit” of ancillary revenue; it provides needed income for airlines and delivers overall lower costs for consumers.  CarTrawler, the leading provider of online car rental distribution systems, and IdeaWorksCompany, the foremost consultant on ancillary revenue, project airline ancillary revenue will increase to $102.8 billion worldwide in 2022, compared to $65.8 billion in 2021 and the $109.5 billion record of 2019. The CarTrawler Worldwide Estimate of Ancillary Revenue represents an increase built upon a 2022 passenger jump, with consumer support for a la carte services and co-branded credit cards showing gains.  The ancillary revenue method represents a powerful airline retail system. The base fare will fluctuate as determined by supply and demand, while the ancillary revenue components provide a layer of stability in the topsy-turvy world of a global business.  The press release offers six consumer-oriented strategies which represent best practices for airline practitioners.  In addition, ancillary revenue data from the last 10 years is provided in two tables in the press release.

Click here to download the two graphics from the press release (free to use).