Nerdwallet Seat selection fees have become more common for a reason — they drive a lot of revenue for airlines. Low-cost airlines Spirit and Frontier earned roughly half of their revenue from “ancillary fees” in 2020, according to a report by IdeaWorksCompany, an industry analytics firm.
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The Independent Since the rise of budget airlines such as Spirit and Frontier, U.S. airlines have dramatically shifted how they make money. Rather than earning profit margin on airfare itself, which is highly competitive, airlines are increasingly focused on “ancillary revenue” from add-on fees, credit card rewards programs and seat upgrades. Between 2019 and 2021,
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ConsumerAffairs The newest airline ancillary revenue report is out and, boy, oh, boy, are the airlines making bank off of those little ancillary fees. Adding together fees for baggage, seat selection, and boarding priority along with commissions gained from hotel bookings and the sale of frequent flier miles to partners, those cha-chings are on track to
Both the airline and the traveler win from add-on fees, a new report suggests Read More »
The Australian An annual report on airline revenue from items such as baggage fees, seat selection, food and beverage and Wi-Fi, estimated carriers would rake in $152bn in 2022, compared with $162bn three years ago. The figure worked out to about $26.50 a passenger on top of their airfare, up from $14.25 a decade ago. The IdeaWorks
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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
Hospitalitynet Airlines’ ancillary revenue ranges anywhere from 20 percent of total revenue for major airlines to 50 percent for low-cost carriers. According to IdeaWorksCompany, ancillary revenue totalled nearly $110 billion globally in 2019 and, despite dipping considerably in 2020, garnered more than $50 billion that year, rising to $68 billion in 2021. Most notably, ancillaries
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Tourinews Published in Spanish, translated to English via Google Translate Despite the fact that the prices of airline tickets and the number of travelers fell sharply in 2020 and 2021 due to the pandemic, airlines have been able to increase revenue per passenger thanks to charging for ancillary services. This is clear from the “Ancillary
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Travel Weekly The Car Trawler Yearbook of Ancillary Revenue, undertaken by consulting firm IdeaWorks, found that in 2021 the average airline ancillary revenue per passenger was $29.96, up 39% from the 2019 average of $21.54 per passenger. The study included 75 airlines that disclosed ancillary sales results for 2021. It includes sales of traditional ancillary
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PhocusWire Sales of add-ons drove an increase in revenue last year as airlines sought to recover pandemic losses. Total ancillary revenue reached $48.4 billion in 2021 – up 54.2% from 2020, but 28% lower than 2019, a new study reveals. Overall airline revenue rose 32% to $462 billion from 2020 to 2021. But 2021 still trailed 2019
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The 2022 edition of the CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany, released today, describes the 2021 ancillary revenue activities and results for 75 airlines. The gradual waning of the pandemic during 2021 – with passenger traffic improving 27.8% above 2020 – lifted ancillary revenue results for all categories of airlines, all over the world.
Average Ancillary Revenue per Passenger Jumps 39% Since 2019 – Press Release Read More »
