Airlines have the potential to earn up to US$6 per passenger in ancillary revenue, according to a new study. Research from Collinson Latitude, a specialist in ancillary revenue programmes, reveals the air industry is missing out on a potential $12 billion annually by not offering services beyond ticket sales. The study is based on IATA figures showing…
Airlines missing out on $6 in extras from passengers
Airlines have the potential to earn up to US$6 per passenger in ancillary revenue, according to a new study.
Research from Collinson Latitude, a specialist in ancillary revenue programmes, reveals the air industry is missing out on a potential $12 billion annually by not offering services beyond ticket sales.
The study is based on IATA figures showing a total of two billion passengers worldwide in 2008.
Figures from leading budget carriers including easyJet and Ryanair show average ancillary revenue of $12 per passenger in 2007 with annual growth rates of more than 50%.
According to Collinson Latitude, ancillary revenue programmes drive further benefits such as loyalty schemes, which enable airlines to gather detailed information on customers.
Collinson Latitude is a newly set up division of Collinson Group, which also owns the Columbus Direct and Priority Pass.
Janet Titterton, the division’s sales and marketing director, said: “All of our programmes can be introduced with minimal IT and resource impact, making the whole process very easy for brands to put into practice.”
