Baggage fees ticket change fees and duty-free sales all add up
According to the Amadeus Yearbook of Ancillary Revenues, 47 global airlines earned $21 billion in ancillary revenues in 2010. That’s up almost 40% over the previous year. The sum includes fees for baggage, in-flight wi-fi and priority boarding as well as “legacy revenues” such as duty-free purchases and the sale of frequent-flier miles to partners. They also increasingly include à la carte fees, although these differ substantially between carriers. “Ancillary fees have become the new decade’s money tree for the airline industry, and they’re going to continue to bear fruit,” comments Jay Sorensen, president of IdeaWorks. One US airline, Allegiant, earned ancillary revenues by selling half a million hotel rooms via its website in 2010.
[pictured: Qatar economy-class meal]