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From 2013 to 2022, global ancillary revenues experienced a significant jump, moving from $42.6 billion to a staggering $102 billion. This growth has been advantageous for both airlines, offering a consistent revenue stream, and passengers, benefiting from reduced ticket prices.
This leap in ancillary revenue can be attributed to the emergence of budget airlines and evolving consumer preferences. Nowadays, travelers seem more inclined to invest in tailored offerings, adding a personal touch to their journey.
What exactly is ancillary revenue?
Ancillary revenue encompasses those additional charges that enhance a traveler’s experience— from choosing your seat, to checking in that extra suitcase, to opting for added legroom or a special in-flight meal. Beyond these immediate services, loyalty programs, affiliated credit cards, insurance options, and collaborations with hotels also contribute to this growing revenue stream.
