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Airline Ancillary Services Market is expected to grow at a CAGR of 18.5% by 2027 - United Airlines, Delta Airlines, American Airlines, Southwest Airlines, Air France/KLM, Ryanair DAC, EasyJet, Deutsche Lufthansa, Qantas Airways, The Emirates Group

10-03-2019 07:04 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: The Insight Partners

Airline Ancillary Services Market

Airline Ancillary Services Market

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.

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.

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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.

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

Leading Airline Ancillary Services Market Players:

• United Airlines
• Delta
• American Airlines
• Southwest Airlines
• Air France/KLM
• Ryanair
• EasyJet
• Lufthansa AG
• Qantas
• Air Canada

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Key Elements that the report acknowledges:

• Market size and growth rate during forecast period.
• Key factors driving the Airline Ancillary Services Market.
• Key market trends cracking up the growth of the Airline Ancillary Services Market.
• Challenges to market growth.
• Key vendors of Airline Ancillary Services Market.
• Detailed SWOT analysis.
• Opportunities and threats faces by the existing vendors in Global Airline Ancillary Services Market.
• Trending factors influencing the market in the geographical regions.
• Strategic initiatives focusing the leading vendors.
• PEST analysis of the market in the five major regions.

Contact Us:
The Insight Partners
533, 5th Floor, Amanora Chambers,
Amanora Township, East Block,
Kharadi Road, Hadapsar, Pune-411028

About Us:

The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We are a specialist in Technology, Healthcare, Manufacturing, Chemical, Food & Beverages, Automotive and Defense.

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