04 June 2011

Who Is the Ancillaries Champ?

Well it depends how you ask the question...

So according to the latest IdeaWorks/Amadeus study there are actually three champs.
By total revenue from Ancillaries

By amount collected from each pax

By percentage per passenger

Now interestingly the US Dept of Transportation decided to take a look at yet another metric which the reverse. IE how much revenue the airlines make from just purely carrying a passenger and charging for the ticket.

That number is also very interesting.

So for your edification I provide all of these elements. So think about how the model has changed.

There is a clear message here - Ancillaries matter to an airline. The message that the GDSs perhaps were not listening to a few years ago. But as you can see this is not a new phenomenon. Ironically it is indeed Amadeus who is sponsoring the study from IdeaWorks. Is there a message here?

This is a trend that has been going for a while.

Happy thinking


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