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Airline ancillary revenues soar

Ancillary revenues for the top 10 performing airlines globally rose to almost $26 billion last year compared to $8.4 billion generated in 2008, a study has found.

US low cost airline Spirit generated the highest amount of ancillary spend per passenger at $51.80.

The findings come from the latest Airline Ancillary Revenue Rankings report from Idea Works Company and Car Trawler.

Ancillary revenue is revenue from non-ticket sources such as checked baggage, assigned seating and booking charges.

United Airlines topped the total revenue table with $6.1 billion compared to $1.6 billion in 2008. Other airlines in the top 10 included Ryanair ($1.7bn), Easyjet ($1.4bn) and Qantas ($1.1bn).

“Airlines can now choose from an ever more sophisticated range of ancillary products and technology,” says Michael Cunningham, chief commercial officer at CarTrawler.

“The challenge is to ensure that the ancillary benefits do not overshadow the core principles of customer experience that airlines have built their brands on.

“The opportunity is to deliver a personalised offering that complements their brand promise. Airlines that do this will see ancillary revenue gains, increased brand loyalty and a boost in customer lifetime value.”

To view results for the top ten airlines in three categories (overall ancillary revenue, as a percentage of company revenue, and on a per passenger basis), please visit this link for the 10-page report.

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