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Big Traffic Author of this article: Civil Aviation Resources Network 2020-12-31
Ancillary revenue includes hotel booking commissions、Selling frequent flyer programs and menu services, etc.。
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According to reports from IdeaWorksCompany consulting company and CarTrawler company,Global airline ancillary revenue is expected to fall to US$58.2 billion in 2020 from US$109.5 billion in 2019,Down 47% year-on-year。This breaks the trend of global ancillary revenue increasing year by year,Even lower than 2015 levels。

Earlier this year, the two companies jointly released the auxiliary revenue status of 81 airlines around the world in 2019,These numbers were used to predict ancillary revenue activity for 134 this year。

Ancillary revenue refers to the revenue generated by airlines’ activities and services other than transporting passengers,Includes hotel booking commission、Selling frequent flyer programs and menu services, etc.,These provide travelers with more choices,Also brings more revenue to aviation。

Said Aileen McCormack, 188bet online sports betting Chief Commercial Officer of CarTrawler,The new crown epidemic has a huge impact on the travel industry,Ancillary income has become a much-needed hope for the industry this year。Although the global average air ticket price has continued to fall in the past 10 years,But ancillary revenue per customer increased significantly,Has grown over 200% since 2010,And the growth trend has not been 188bet sports betting app download Affected by the epidemic。This reflects the continued demand among travelers for a true end-to-end travel experience,This is a solid foundation for our recovery and revitalization in 2021 and beyond。

According to IATA data,Global average ticket prices continue to fall,There will be a sharp decline in 2020。The ancillary revenue per customer maintains a year-on-year growth trend,Even after the epidemic in 2020。2010,Ancillary revenue per customer is 8.USD 42,Increased to 23 in 2019.USD 91,Estimated to increase to 25 in 2020.$9。

A lot of evidence,Travellers’ recognition of menu-based services in 2020 will remain at the same level as in 2019。For example,AirAsia and Wizz Air revealed positive signals about ancillary operations in their second quarter financial reports。In the second quarter, AirAsia’s passenger purchase rate for some businesses in the Thai and Malaysian markets increased:

- Travel insurance: purchase rate 14%,An 188bet Online Sports Betting and Casino increase of 88% compared with before the epidemic;

- Luggage: purchase rate 47%,72% increase compared to before the epidemic;

- Meal reservations: revenue per guest increased by 43%;

- Seat selection: purchase rate 26%,15% increase compared with before the epidemic。

Wizz Air CEO Jozsef Varadi revealed,The company previously expected,Ancillary revenue per customer will increase by 0 in 2020.5 to 1 Euro,Situation as of the end of the second quarter,The epidemic is not expected to have an impact on the plan。Wizz Air said,No discounts on assisted collection services to boost demand。

Feedback from global airline executives,Purchasing behavior of passengers regarding menu services in 2020 is similar to that in 2019。Luggage fees and seat selection are still important parts of supplementary fees。

Here are some of the comments received:

- Baggage revenue growth,Due to increased family travel、Longer travel time and other factors result in more luggage for passengers;

- Seat selection becomes an important factor,Passengers want to sit in the front row so they can get off the plane faster after arrival;

- Extra legroom service is more popular among passengers;

- In-flight purchasing behavior depends on airport services。If the airport has limited food service due to store closures,In-flight meal sales will be higher;

- 188bet sports betting app download Affected by the epidemic to reduce employee exposure,No hot food or limited menu service on board,On-board consumption will decrease;

- Airport lounges become less attractive,Due to limited meals provided;

Low-cost airlines and “auxiliary revenue champions” are important sources of ancillary revenue。But as a separate category,The total ancillary revenue is lower than that of traditional airlines。

IATA estimate,Global airline revenue dropped by 50% in 2020.4%。IdeaWorksCompany estimated,Ancillary revenue will drop by nearly 47%。The better the ancillary revenue performance,Can avoid layoffs and reductions in airline agreements,Provide a certain buffer for heavy landings in the aviation industry。Supplementary revenue was once an important way for airlines to obtain more profits,Now it is a reliable buffer to help airlines survive the epidemic crisis。

When IdeaWorksCompany and CarTrawler jointly released 2019 data in September,Predicted the auxiliary revenue of some airlines in 2020。The three major U.S. airlines will still be the airlines with the largest auxiliary revenue in the world,But the average decrease is around 50%。Air Canada’s ancillary revenue is expected to fall by 73%。

188bet online sports betting Source: Civil Aviation Resources Network, original title: "Global airline 188bet online sports betting auxiliary revenue will drop 47% in 2020 to below the 2015 level》.

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