Qantas reels in ancillary revenues

Qantas reels in ancillary revenues
By admin

Airline ancillary revenues have rocketed over the last two years, according to a new report, with Qantas notching up the highest ancillary revenue per passenger of all the global airlines surveyed.

The Amadeus Review of Ancillary Revenue Results 2011 revealed ancillary revenues reported by airlines rose 66% over two years to to 13.23 billion Euro in 2011.

Qantas came fourth in the top 10 airlines for total ancillary revenue, recording 1.1 billion Euro in 2011, and recorded ancillary revenue of 40.91 Euro per person, the highest of the 108 airlines surveyed. 

Its frequent flyer program had generated an “amazing amount of revenue” on a per passenger basis, according to the report, with its co-branded credit cards playing a key role.

The report, conducted by IdeaWorksCompany, found that ancillary revenue is now a priority for many airlines worldwide. Of the 108 airlines researched, 50 disclosed ancillary revenue activity.

Amadeus senior vice president distribution Holger Taubmann said the industry had moved “swiftly” to grasp ancillary opportunities such as baggage fees, extra legroom and on-board catering.

“The next wave of innovation in ancillary services will come from those airlines which develop new products that support their brand positioning and deliver value to the traveller by meeting their individual needs and preferences,” he said.

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