Airline Ancillary Services Market to Grow at 18+% CAGR to Reach $412.86 Billion by 2027 Led by Aeroflot, Aeromexico, Alaska Air, Allegiant, ANA All Nippon, Avianca, Azul, British Airways, Copa, Croatia Airlines, Emirates

The scope of study involves understanding on the factors responsible for this growth of Airline Ancillary Services market along with the estimates and forecasts of the revenue and market share analysis and also spots the significant Airline Ancillary Services players in the market and their key developments.

The Insight Partners: Digital economy trendsetters to shape the ancillary sales revenue in the coming years and enabling an estimated growth rate of 18.5% (2019-2027).

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The global airline ancillary services market accounted to US$92.89 Bn in 2018 and is expected to grow at a CAGR of 18.5% during the forecast period 2019 - 2027, to account to US$412.86 Bn by 2027.

North America was the leading geographic airline ancillary service market and it is anticipated to be the highest revenue contributor throughout the forecast period. Higher concentration of Full-Service Carriers in the countries like U.S and Canada is expected to fuel airline ancillary services market in this region. In addition, the region is also found to have the largest share of the migrated population, particularly in terms of people traveling for the educational and business purpose has had greatly influenced the airline ancillary service market in North America.

Some of the remarkable market initiatives in this industry includes implementation of new revenue management and reporting solution by Czech Airlines. The initiative was the part of its strategy to optimize revenue. In addition the KLM Royal Dutch Airline also announced its decision to drop onboard duty free services as they explore novel ways to boost their ancillary revenues. This was attributed to several new developments, which also foster rise of e-commerce resulting declined onboard sales leading to the airline exploring alternative forms of travel retail.

The global Airline Ancillary Services market by geography is segmented into five region including north America, Europe, Asia Pacific, Middle East & Africa and South America. North America is expected to account for the largest share of the global Airline Ancillary Services market in 2017, followed by Europe. In addition the, China and Singapore are the two key countries in APAC region which are expected to significantly drive the Airline Ancillary Services market and also expected to continue its dominance in terms of CAGR throughout the forecast period from 2019 to 2027.

Airline Ancillary Services Market Insights: The increasing middle-class population is expected to have a noteworthy impact on the ancillary services market

Exponential growth in the passengers traveling through airways is majorly influenced by the rapidly emerging middle-class segment in developing economies. The remarkable increase in the working group in the developing region has resulted in up surged disposable income and freight traffic. Majority of the rising middle class was witnessed in China and India (as described by the United Nations). Furthermore, as the world continues to recover from previous economic contractions, the demand for air travel is projected to vary widely. The rise in air travel demand has subsequently resulted in increased demand for low-cost airlines. Here the airline ancillary services market players are grabbing the opportunity to make more revenue through ancillary services so that they can cater to low-cost as well as exclusive service demand of their consumer diversity.

Airlines led the business world in their development of variable pricing of airfares, known as yield management, and in expanding to revenue management. The industry still continues to lead the business world, embracing the truism that all customers are different and have different needs. With airfares falling by almost 40% over the past two decades, majority airline ancillary services market participants cite competition as the greatest challenge being faced by their respective firms. In the airline, ancillary services market established Full-Services Carriers (FSCs) face robust challenges from Low-Cost Carriers (LCCs) offering low fares and options priced separately, and all carriers confront an array of choices related to how to create offers and communicate with customers.

Airline carriers to gain ancillary profits from theatres and car hire services:

The lost cost airlines across the globe are collaborating with theatres and car hire services in order to expand their airline ancillary revenues. Ryanair for instance in the year 2018, had begun selling tickets for theatre (musicals for wicked and Les Miserable). In addition, low-cost carriers like Spirit Airlines of the U.S accounted for the ticket revenue of US$ 328Mn in 2017 and non-ticket revenue of US$329m, this showcases that the low-cost airlines are highly emphasizing on ancillary revenues for their growth, subsequently fueling the global airline ancillary service market.

A key trend which will predominantly impact the airline ancillary services market in a coming year is that the rollout of the in-flight Wi-Fi at pace is expected to push the in-flight ancillary opportunities in the airline ancillary services market. The ability to carry on with everyday life at 35,000 feet whether it’s about checking emails or streaming from Netflix. The rising implementation of in-flight Wi-Fi in the coming years is expected to become mainstream and this is further projected to open door to new opportunities for the airline ancillary services market. Carrier services providers like Lufthansa, Austrian Airlines and Eurowings are anticipated to soon provide their customers with “home-style” broadband, whereas other carrier services providers including Air France-KLM, SAS, Finnair, British Airways, Aer Lingus and Iberia are some of the companies who are soon expected to be equipped with the latest generation of connectivity equipment.

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Airline ancillary services market by carrier type is segmented into full services carriers and low-cost carriers. LCCs (Low-Cost carriers) are anticipated to continue to eat into the airline ancillary services market share of Full-services Carriers. However, the value propositions offered by the LCC are increasingly converging. Several non-premium carrier services providers have had begun to provide optionally, pay-as-you-go upgraded services to their clients. This trend was particularly prominent in emerging markets where passengers were getting more sophisticated and raised their demand for a broader range of services on board. For instance, in China and Southeast Asia, LCCs have been adopting a hybrid model to attract customers willing to pay a bit more for better services. In response, some full services carriers such as American Airlines have tugged their models to offer no-frills packages, targeting value-conscious customer segments.

The overall airline ancillary services market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the market. Also, the primary interview was conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultant such as valuation experts, research analysts, and key opinion leaders specializing in the airline ancillary services industry.

Product Insights:

The global airline ancillary service market by product was led by baggage fees segment. Rest products considered in the airline ancillary services market include Onboard Retail & A la Carte
Airline Retail, FFP Miles Sale, Others among others. In the coming years, the airlines continue to grow technology and become more connected the onboard retail and Al-a carte are expected to gain majority traction in the market.

Carrier Type Insights:

The airline ancillary services market by carrier type is segmented into full-service carriers and low-cost carriers. The full-service carriers are anticipated to lead the market in terms of revenue contribution. However, in terms of growth, the low-cost airlines are expected to gain a trajectory during the forecast period of 2019-2027.

Strategic Insights:

Strategic partnership with hospitality transportation industry as a part of the enhancement of the ancillary service offering was observed as the most adopted strategy in global airline ancillary services industry.

2019: Eurowings partnered with FlixBus in order to create a smart travel platform for customers. With this partnership, the company Eurowings aimed to provide its customers with an ability to book tickets with the mobility provider directly through the airline app.

2019: American Airlines and Hyatt Hotels had announced their partnership aiming to provide frequent travelers with enhanced loyalty benefits.

2018: Cooperation of Hamburg Airport and Filo Airport focused to provide access to exclusive retail and food & beverage offers, along with car parking space bookings and lounge access

GLOBAL AIRLINE ANCILLARY SERVICES MARKET - SEGMENTATION

Global Airline Ancillary Services market - By Type
• Baggage Fees
• On-board Retail & A la Carte
• Airline Retail
• FFP Miles Sale
• Others

Global Airline Ancillary Services market - By Carrier Type
• Full Service Carrier
• Low-cost Carrier

Global Airline Ancillary Services market - By Geography
• North America
• U.S.
• Canada
• Mexico

• Europe
• France
• Germany
• UK
• Russia
• Rest of Europe

• Asia Pacific (APAC)
• Australia
• China
• India
• Japan
• Rest of APAC

• Middle East & Africa (MEA)
• Saudi Arabia
• South Africa
• UAE
• Rest of MEA

• South America (SAM)
• Brazil
• Argentina
• Rest of SAM

Global Airline Ancillary Services Market – Company Profiles
• Aeroflot
• Aeromexico
• Air Arabia
• Air Asia Group
• Air Astana
• Air China
• Air Greenland
• Air India Express
• AirAsia X
• Alaska Air Group
• Allegiant
• ANA All Nippon
• Avianca
• Azul
• British Airways
• Cebu Pacific
• China Eastern
• China Southern
• Copa
• Croatia Airlines
• Emirates
• flyDubai
• Garuda Indonesia
• GOL
• Hawaiian
• HK Express
• Indigo
• Japan Airlines
• JejuAir
• Jet Airways
• Jin Air
• Nok Air
• Philippines Airlines
• Pobeda
• Rex Regional Express
• Royal Jordanian
• SAS Scandinavian
• Spicejet
• Spring Airlines
• Sun Country
• Thomas Cook Group Airlines
• Vietjet
• VivaAeroBus
• Volaris
• Volotea
• WizzAir
• WOW Air

TABLE OF CONTENTS:

1. INTRODUCTION

2. KEY TAKEAWAYS

3. RESEARCH METHODOLOGY

4. AIRLINE ANCILLARY SERVICES MARKET LANDSCAPE

5. AIRLINE ANCILLARY SERVICES MARKET – KEY INDUSTRY DYNAMICS

6. AIRLINE ANCILLARY SERVICES MARKET – GLOBAL MARKET ANALYSIS

7. AIRLINE ANCILLARY SERVICES MARKET REVENUE AND FORECASTS TO 2027 – TYPE

8. AIRLINE ANCILLARY SERVICES MARKET REVENUE AND FORECASTS TO 2027 – CARRIER TYPE

9. AIRLINE ANCILLARY SERVICES MARKET – GEOGRAPHICAL ANALYSIS

10. INDUSTRY LANDSCAPE

10.1 MARKET INITIATIVE

10.2 MERGER AND ACQUISITION

10.3 NEW DEVELOPMENT

11. COMPANY PROFILES

11.1 AIR FRANCE/KLM
11.1.1 KEY FACTS
11.1.2 BUSINESS DESCRIPTION
11.1.3 PRODUCTS AND SERVICES
11.1.4 FINANCIAL OVERVIEW
11.1.5 SWOT ANALYSIS
11.1.6 KEY DEVELOPMENTS

11.2 AMERICAN AIRLINES
11.2.1 KEY FACTS
11.2.2 BUSINESS DESCRIPTION
11.2.3 PRODUCTS AND SERVICES
11.2.4 FINANCIAL OVERVIEW
11.2.5 SWOT ANALYSIS
11.2.6 KEY DEVELOPMENTS

11.3 DELTA AIRLINES
11.3.1 KEY FACTS
11.3.2 BUSINESS DESCRIPTION
11.3.3 PRODUCTS AND SERVICES
11.3.4 FINANCIAL OVERVIEW
11.3.5 SWOT ANALYSIS
11.3.6 KEY DEVELOPMENTS

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