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Airlines Project Ancillary Revenues Will Reach $92.8 Billion in 2018

Airline ancillary revenue will reach $92.8 billion worldwide in 2018, according to a report from IdeaWorks Company and Car Trawler.

That represents a 312% increase from the 2010 figure of $22.6 billion, which was the first annual ancillary revenue estimate. The CarTrawler Worldwide Estimate of Ancillary Revenue marks the ninth year IdeaWorks Company has prepared a projection of ancillary revenue activity.

Ancillary revenue is generated by activities and services that yield cash flow for airlines beyond the simple transportation of customers from A to B. This wide range of activities includes commissions gained from hotel bookings, the sale of frequent flyer miles to partners, and the provision of a la carte services − providing more options for consumers and more profit for airlines. Aileen McCormack, chief commercial officer at CarTrawler, said the revenue “indicates that good merchandisers are selling products desired by a vast number of customers.”

by Dan Booth