This market research report presents a comprehensive segmentation of the global ancillary revenue management market by type of carriers (major airlines and low-cost airlines). It outlines the market shares for key regions such as the Americas, APAC, and EMEA. The key vendors analyzed in this report are Amadeus, Navitaire, Sabre, Travelport, and SITA.
Technavio’s market research analysts estimate the global ancillary revenue management market, to grow at a CAGR of around 8% between 2016 and 2020. Ancillary revenue management is gaining traction among airlines, as it helps manage revenue and improve the end-user experience. Some of the major sources for ancillary revenue include fees for baggage, ticket change, extra amenities, annual subscriptions to premium services, frequent flyer programs (FFPs), and on-board duty-free sales. The Americas leads the global ancillary revenue management market, occupying around 44% of eth total market share. The US is the biggest revenue contributor in this region with big airlines such as Alaska Airlines, Delta, American, Hawaiian, United, Southwest, and US Airways relying on frequent flyer program (FFP) to generate ancillary revenue.
The new market research report from Technavio provides a breakdown and analysis of the ancillary revenue segments by technology.
“Several online traveling agencies (OTAs) have integrated ancillary offerings to their booking engines allowing them to offer point-of-sale offerings such as extra baggage, lounge access, Wi-Fi, and other services in select countries. Moreover, the revenue management solutions offered by vendors to OTAs help automate and standardize the process, capture new sales, reduce errors, and adhere to airline requirements and industry standards. This has reduced the cost incurred by airlines to manage separate domestic and international ancillary revenue,” says Amit Sharma, Lead Analyst, ICT, Technavio Research
The major airlines segment accounts for the largest market share, occupying around 62% of the overall market revenue. There has been tremendous growth in ancillary revenue in this segment, with the major revenue being generated by the sale of frequent flyer program (FFP) and online booking reservation systems. American, Delta, and United are some of the major airlines dominating in this segment.
Global ancillary revenue management by type of carrier 2015
Source: Technavio, 2016
The leading vendors in the global ancillary revenue management market are Amadeus, Navitaire, Sabre, Travelport, and SITA. Low-cost carriers in this market have been collaborating with established vendors to strengthen their revenue management leading to increased realized revenue from ancillary. Globally, vendors in this market are facing tough competition from niche players who offer analytics and BI products/solutions.
A more detailed analysis is available in the Technavio report, Global Ancillary Revenue Management Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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