2020 Cartrawler Yearbook of Ancillary Revenue by Ideaworkscompany
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The 2020 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany Table of Contents Updates to the 2020 Yearbook .......................................................................................................... 3 Summary of the Results ...................................................................................................................... 5 Interesting Statistics Identified in this Yearbook .......................................................................... 10 Ancillary Revenue Defined ............................................................................................................... 13 About Individual Airline Listings ...................................................................................................... 14 Ancillary Revenue Data and Graphs .............................................................................................. 17 Europe and Russia .............................................................................................................................. 25 The Americas ....................................................................................................................................... 57 Asia and the South Pacific................................................................................................................. 95 Middle East and Africa ..................................................................................................................... 134 Currency Exchange Rates Used for this Yearbook ................................................................... 143 The free distribution of this report is made possible through the sponsorship of CarTrawler. CarTrawler is the leading B2B provider of car rental and mobility solutions to the global travel industry. We bring opportunities to life through an online marketplace connecting our partners, customers and mobility suppliers. CarTrawler’s end-to-end technology platform expands our airline and travel partners’ offering to their customers, creating substantial ancillary revenue opportunities. We provide unrivalled breadth and depth of content worldwide, including car rental, private airport transfer and ride-hailing services. CarTrawler creates innovative, data-led solutions for some of the largest travel brands in the world, including American Express, Alaska Airlines, easyJet, eDreams ODIGEO, Hotels.com, KLM, TravelStart and Emirates. As a B2B company we focus solely on helping our airline and travel partners build their brands, not our own. CarTrawler was established in 2004. Our headquarters are in Dublin, Ireland, with an office in New York. For more information visit www.cartrawler.com. Issued 29 September 2020 by IdeaWorksCompany.com LLC Shorewood, Wisconsin, USA www.IdeaWorksCompany.com Version 1 2020 CarTrawler Yearbook of Ancillary Revenue © IdeaWorksCompany.com LLC Page 1 About Jay Sorensen, Writer of the Report Jay Sorensen’s research and reports have made him a leading authority on frequent flyer programs and the ancillary revenue movement. He is a regular keynote speaker at the annual MEGA Event, spoke at IATA Passenger Services Symposiums in Abu Dhabi and Singapore, and has testified to the US Congress on ancillary revenue issues. His published works are relied upon by airline executives throughout the world and include first-ever guides on the topics of ancillary revenue and loyalty marketing. He was acknowledged by his peers when he received the Airline Industry Achievement Award at the MEGA Event in 2011. Mr. Sorensen is a veteran management professional with 36 years experience in Jay and son Aleksei hiking in the Santa Monica product, partnership, and marketing Mountains National Recreation Area in California. development. As president of the IdeaWorksCompany consulting firm, he has enhanced the generation of airline revenue, started loyalty programs and co-branded credit cards, developed products in the service sector, and helped start airlines and other travel companies. His career includes 13 years at Midwest Airlines where he was responsible for marketing, sales, customer service, product development, operations, planning, financial analysis and budgeting. His favorite activities are hiking, exploring and camping in US national parks with his family. About Eric Lucas, Editor of the Report Eric Lucas is an international travel, culture and natural history writer and editor whose work has appeared in Michelin travel guides, Alaska Airlines Beyond Magazine, Westways and numerous other publications. Founding editor of Midwest Airlines Magazine, he is the author of eight books, including the 2017 Michelin Alaska guide. Eric has followed and written about the travel industry for more than 30 years. He lives on San Juan Island, Washington, where he grows organic garlic, apples, beans and hay; visit him online at TrailNot4Sissies.com. Eric, at his favorite summer retreat, Steens Mountain, Oregon. 2020 CarTrawler Yearbook of Ancillary Revenue © IdeaWorksCompany.com LLC Page 2 Disclosure to Readers of this Report: IdeaWorksCompany.com LLC makes every effort to ensure the quality of the information in this report. Before relying on the information, you should obtain any appropriate professional advice relevant to your particular circumstances. IdeaWorksCompany cannot guarantee, and assumes no legal liability or responsibility for, the accuracy, currency or completeness of the information. The views expressed in the report are the views of the author, and do not represent the official view of CarTrawler. Terms of Use for this Report: You may not disseminate any portion of the Report through electronic means, including mail lists or electronic bulletin boards, without the prior consent of IdeaWorksCompany. This restriction includes Statista.com and similar subscriber- based websites. You may make one hard copy by downloading and printing it. You may store the document as a file on your computer. Please contact IdeaWorksCompany if you require multiple downloads for use within your company, and for all other uses. Except as expressly permitted in this Terms of Use, the Report may not be reproduced, transmitted, or distributed without permission. You may not commingle any portion of the Report with any other information and shall not edit, modify, or alter any portion. IdeaWorksCompany provides the Report and services “as is” and without any warranty, or condition, express, implied or statutory. IdeaWorksCompany specifically disclaims any implied warranty of title, merchantability, fitness for a particular purpose, and non- infringement. In no event shall IdeaWorksCompany be liable for lost profits or any special, incidental, or consequential damages arising out of or in connection with the Report (however arising, including negligence). Distribution of this Report is protected by the Economic Espionage Act of 1996 of the United States and the data protection laws of Europe. Updates to the 2020 Yearbook This is Version 1.0 of the 2020 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany. Readers are encouraged to visit the IdeaWorksCompany website to check for updates to this yearbook: https://ideaworkscompany.com/reports/ Updates will include corrections made to the data presented. These will be summarized in the “Updates to the 2020 Yearbook” page. The most up-to-date version of the yearbook will be available at the website. Every effort is made to provide accurate data. Users are kindly requested to advise IdeaWorksCompany using the contact form provided at the website: https://ideaworkscompany.com/contact/ 2020 CarTrawler Yearbook of Ancillary Revenue © IdeaWorksCompany.com LLC Page 3 2020 CarTrawler Yearbook of Ancillary Revenue © IdeaWorksCompany.com LLC Page 4 Summary of the Results Ancillary revenue provides rare good news for airline industry The 2020 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany is our largest ever, with 81 airlines disclosing ancillary revenue results. Last year’s edition included results from 76 airlines. By every measure, 2019 was a year of overwhelmingly good ancillary revenue results for airlines. That’s a good thing, as this provided resilience for the challenges of 2020. Think of a bear preparing for hibernation. Katmai National Park in Alaska features its brown bears in the annual Fat Bear Week. The fattest looking bear is selected by viewers of its bear cams. During late summer these bears begin to put on the pounds and can eat up to 40 salmon in a day. All of this weight gain provides protection against a foodless winter spent in a bear den. For the bears, the extra weight is a matter of survival; ancillary revenue helps do the same for airlines. Meet Holly, or bear #435, who is the winner of the 2019 Fat Bear Week at Katmai National Park, Alaska. Image: National Park Service The exceptional ancillary revenue of 2019 added a layer of cash to airline balance sheets for the long, cold revenue winter of 2020. Just as important, the higher rates of ancillary revenue have remained durable during the pandemic. This delivers reliable revenue while airlines experiment with very low fares to tempt consumers back into the air. This year’s 81 airlines represent a very Disclosing Airlines by Region robust 68.6 percent of IATA’s worldwide airline industry traffic estimate for 2019.1 Asia / The list is a collection of the world’s best Middle South performing ancillary revenue airlines. East and Pacific Africa There is much that can be learned from 38% 9% analysis of yearbook results. Over