Qantas is world’s best at charging for extras
Qantas has topped a league table detailing how much airlines make from charging passengers for an array of extra services, often those connected to comfort and convenience.
Qantas received an average of US$56.2 per passenger in extras alone in 2012, industry figures reveal.
Others who boosted revenue from extra paid-for services included AirAsiaX (US$46.3 per passenger), Korean Air (US$30.9), Virgin Atlantic (US$30.4) and Jetstar (US$29.6).
In the case of Jetstar, ancillary revenue accounted for 18.6% of the airline’s total revenue.
The first report on ancillary revenue was issued in 2008 with only 23 airlines worldwide disclosing ancillary revenue activity in financial filings, and the result was a modest US$2.4 billion.
Once largely limited to low fare airlines, ancillary revenue has now become a financial necessity for airlines all over the globe.
Qantas and Virgin Atlantic accomplish this task largely through the sale of frequent flier points or miles to programme partners.
Today, 53 airlines disclose ancillary revenue activity of US$27.1 billion. This represents a more than doubling (101% increase) of the ancillary revenue of $13.4 billion from 2009.
Researcher IdeaWorks Company said: "Carriers worldwide rely upon the revenue from frequent flier activities, a la carte features, and commission-based products, to create profits in an era of high fuel costs while keeping fares modest in a recession-weary world."
Ian Jarrett
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Strike action set to cause travel chaos at Brussels airports