The global airline ancillary service market for the type is fragmented into Baggage fees, Onboard retail and a la carte services, Airline travel retail and FFP miles sales. There have been several changes in the airline industry. In commercial departments at airlines around the world, analytics have taken hold and inform more decisions than ever. Those decisions include how, where, when, and at what price to offer options as diverse as checked baggage, pre-assigned seats, onboard meals, and hotel bookings, all of which fall broadly under the category of ancillary. Revenue from ancillary options has almost doubled as a percentage of total airline income from 4.8% in 2010 to 9.1% in 2016. Some airlines book more than 40% of their passenger revenue from these options. As the percentage grows, and airlines recognize the competitive importance of ancillary, the need for optimization increases. Ancillary merchandising, the art and science of creating and communicating the optimal mix of options at the right price, at the right time, represents a key driver for airline revenues.

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Airlines continue to lead the business world, embracing the truism that all customers are different and have different needs. Therefore, the airlines are progressively enhancing their offers to reflect the different needs and values of their customers.

Some of the leading Airline Ancillary Services market include, United Airlines, Delta, American Airlines, Southwest Airlines, Air France/KLM, Ryanair, easyJet, Lufthansa AG, Qantas, and Emirates Group among others.

1.             INTRODUCTION

1.1       SCOPE OF THE STUDY

1.2       THE INSIGHT PARTNERS RESEARCH REPORT GUIDANCE

1.3       MARKET SEGMENTATION

2.             KEY TAKEAWAYS

3.             RESEARCH METHODOLOGY

3.1       COVERAGE

3.2       SECONDARY RESEARCH

3.3       PRIMARY RESEARCH

4.             AIRLINE ANCILLARY SERVICES MARKET LANDSCAPE

4.1       MARKET OVERVIEW

4.2       ECOSYSTEM ANALYSIS

4.3       PEST ANALYSIS

4.3.1        North America PEST Analysis

4.3.2        Europe PEST Analysis

4.3.3        Asia Pacific PEST Analysis

4.3.4        Middle East and Africa PEST Analysis

4.3.5        South America PEST Analysis

5.             AIRLINE ANCILLARY SERVICES MARKET – KEY INDUSTRY DYNAMICS

5.1       KEY MARKET DRIVERS

5.1.1        Rising middle class to contribute to increased demand for air travel

5.1.2        Growing Contribution of Frequent Flyer Program (FFP) towards Enhancing the Ancillary Revenue

5.1.3        In-flight retail partnerships

5.2       KEY MARKET RESTRAINTS

5.2.1        Cost Cutting on Airline Services is Impacting Negatively on the Airline Ancillary Service Market

5.3       KEY MARKET OPPORTUNITIES

5.3.1        Start-ups present new ancillary revenue opportunities

5.4       FUTURE TRENDS

5.4.1        Rollout of the in-flight Wi-Fi at pace is expected to push the in-flight ancillary opportunities

5.5       IMPACT ANALYSIS OF DRIVERS AND RESTRAINTS

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This post was originally published on The Picayune Current

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