Even before the new distribution standard NDCwhich is intended to facilitate the marketing of ancillary costs, the financial windfall generated by these ancillary costs will be considerable. à la carte income represents the considerable sum of 65 billion (57.6 billion euros). This is the result of 2018 report published on 19 February by CarTrawler and IdeaWorksCompanyand based on the results of 175 transporters on a global scale.
Among them, the European companies has proved particularly effective. Baggage check-in fees, seat assignment, in-flight catering, priority check-in, in-flight entertainment systems: by marketing these "little extras", carriers on the Old Continent have generated no less than 22.5 billion (19.9 billion euros), overtaking Asian carriers - the second most demanding market in terms of à la carte services - at 4 billion dollars.
Nevertheless, the growth dynamic is less pronounced in Europe than in other business travel markets. Admittedly, between 2014 and 2018, ancillary costs rose by 105 % among airlines. But at the same time, Asia-Pacific airlines posted growth of 190%!
Additional revenues are changing the business model of airlines around the world
" A la carte revenues, i.e. the options that consumers can add to their basket when purchasing a flight, showed strong growth worldwidesays Aileen McCormack, Sales Director at CarTrawler. The total revenues have more than doubled over the last five years. Unsurprisingly, they increased in Europe and North America. The biggest increases were in Asia, Africa and the Middle East. The increase in the number of passengers carried by airlines based in these regions explains a large part of these results. But with traditional airlines becoming more involved in à la carte activities, and the presence of low-cost carriers increasing, it is clear that something else is happening. Additional revenues are on the way to changing the airline business model all over the world "says Aileen McCormack.
