European Airlines Lead 2017 a la Carte Revenue Estimate at $19.4 Billion with Asian Carriers 2nd at $15.8 Billion
CarTrawler Global Estimate of a la Carte Revenue yields regional details from the worldwide total of $57 billion.
Dublin, Ireland & Shorewood, Wisconsin, 20 February 2018: IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, the leading technology platform providing full end to end transport solutions for online businesses, recently estimated airline a la carte revenue at $57 billion worldwide for 2017. The CarTrawler Global Statistics of a la Carte Revenue adds regional details, comparisons to 2010 numbers, and a first-ever baggage revenue estimate, to the ancillary revenue figures in the earlier November 2017 press release.
Each year IdeaWorksCompany, through the sponsorship of CarTrawler, analyzes the ancillary revenue disclosures for airlines all over the world. These results are applied to a larger list of carriers (which numbered 184 for 2017) to estimate ancillary revenue activity for the world’s airlines. A la carte activity is a significant component of ancillary revenue and consists of the amenities consumers can add to their air travel experience. These include fees paid for checked baggage, assigned seats, buy-on-board meals, early boarding, and onboard entertainment. Of these, the revenue from checked baggage looms large with $23.6 billion in estimated sales for 2017.
Aileen McCormack, CarTrawler’s chief commercial officer, said: “The huge increase of 308% for a la carte revenue since 2010 offers testimony to the growing popularity of the low cost airline model and the a la carte approach to pricing. Be it global network airlines like Emirates in the Middle East, ancillary revenue champions such as AirAsia and Ryanair, and even traditional airlines like TAP Portugal, all are becoming better retailers to encourage consumer spending and to boost returns for investors. Along with this growing retail expertise, car hire and hotel booking capabilities also allow airlines to better serve the entire spectrum of consumer travel needs.”