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Airline Ancillary Services Market SWOT Analysis to 2027- Emirates Group, Qantas, easyJet, American Airlines, Southwest Airlines
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.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$412.86 Bn by 2027.
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Some of the leading Airline Ancillary Services market include, United Airlines, Delta, American Airlines, Southwest Airlines, Air France/KLM, Ryanair, easyJet, Lufthansa AG, Qantas, and Emirates Group among others.
Exponential growth in the passengers traveling through airways is majorly influenced by the rapidly emerging middle-class segment in developing economies. The remarkable increase in the working group in the developing region has resulted in up surged disposable income and freight traffic. Majority of the rising middle class was witnessed in China and India (as described by the United Nations). Furthermore, as the world continues to recover from previous economic contractions, the demand for air travel is projected to vary widely. The rise in air travel demand has subsequently resulted in increased demand for low-cost airlines. Here the airline ancillary services market players are grabbing the opportunity to make more revenue through ancillary services so that they can cater to low-cost as well as exclusive service demand of their consumer diversity.
The lost cost airlines across the globe are collaborating with theatres and car hire services in order to expand their airline ancillary revenues. Ryanair for instance in the year 2018, had begun selling tickets for theatre (musicals for wicked and Les Miserable). In addition, low-cost carriers like Spirit Airlines of the U.S accounted for the ticket revenue of US$ 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.
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
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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
Italy
Russia
U.K
Rest of Europe
Asia Pacific (APAC)
Japan
China
Australia
India
Rest of APAC
Middle East & Africa (MEA)
Saudi Arabia
South Africa
UAE
Rest of MEA
South America (SAM)
Brazil
Argentina
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