Ancillary services have become a major source of revenue for airlines, generating $42.6 billion in 2013. Both full service carriers and low cost carriers have benefited from fees for items like baggage, seat selection, in-flight entertainment and hotel/car services. Global ancillary revenue per passenger was $13 in 2013, and airlines expected to earn $5.94 per passenger in profit from these services in 2014. Technology partners are important for airlines to effectively integrate new ancillary services and distribution channels to maximize revenue from customer fees.

1. ANCILLARY SERVICES
Your Ticket to Profit
In 2013, Airlines
earned $ 42.6 billion
in ancillary revenue
Full service carriers
and Low cost carriers
benefit from ancillary
revenue
Global ancillary
revenue per
passenger $ 13
Airlines expected to
earn profit in 2014
$ 5.94 per passenger
IATAAmadeus
Ideaworks Co.
and Car Trawler
ANCILLARY REVENUE FOR AIRLINES
TECHNOLOGY PARTNER TRIPS
6%
Accounted for
Total Revenue
4.2%
2013
$ 42.6 billion
2010
$ 22.6 billion
Insurance
In-flight
entertainment
Seat preference
Early boarding
Event tickets
Hotel tie-ups
Guided city tour
car rentals
Baggage fee
Partner with
domain experts
Understand
and integrate
distribution
channels
Integrate
front-end
operations
with back-end
systems
Implement
payment
gateway
interfaces for
e-commerce
Customer
feedback on
each new
service
Customer
friendly user
interface & New
generation
technology
Food & beverage
Premium booze/
gourmet meals
Blanket
Wi-fi acess
Airport lounge
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