Ancillaries make up a pretty important piece of the revenue pie for airlines. IdeaWorksCompany knows this — they offered the following definition of ancillary revenue in 2008, which has since become accepted as the industry standard:
Revenue beyond the sale of tickets that is generated by direct sales to passengers, or indirectly as a part of the travel experience.
They further define ancillary revenue by using these five categories:
- A la carte features,
- Commission-based products,
- Frequent flyer activities,
- Miscellaneous sources such as advertising, and
- The a la carte components associated with a fare or product bundle.
IdeaWorksCompany recently released an analysis showing the top 10 airline ancillary revenue rankings for 2017. They reviewed 146 airlines and found that 73 had financial results related to ancillaries.
From this data, they highlighted the top performers across the following outcomes:
- Ancillary revenue as a percentage of total revenue
- Ancillary revenue per passenger
- Total ancillary revenue.