Most ancillaries paid on Jet2 flights
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Europe’s most ancillary-selling airline has been named as Jet2.com, not Ryanair as most would expect.
The north-UK specialist was listed third in a list of airlines that had the highest percentage of their income come from selling add-ons in 2012, behind US-based carriers Spirit and Allegiant.
According to the IdeaWorksCompany report, 26.5% of Jet2’s revenue is made through selling extras such as checked bags and holidays.
Its report looked into money generated outside of the initial fare including frequent flier programmes; extras bought pre or during flight; commission based products like accommodation or car rental and revenue from its in-flight magazine.
The report said: “Jet2.com place new a la carte focus during 2012 on the packages sold through the Jet2holidays brand. Carriers wishing to break through the 25% barrier [of revenue from ancillaries] might consider more emphasis on holiday vacation sales.”
Ryanair featured just a place below with 21.8% of its revenue from ancillaries, while Flybe was tenth at 17.7%. easyJet did not disclose its ancillary revenue but is estimated to make 19.5% of its revenue from add-ons.
While the low-cost carriers dominated the ancillary sales list, traditional carriers are catching up with Air France-KLM leading the way in ancillary revenue.
In a table of total ancillary revenue, US carriers dominated the top five with United way ahead with US$5.3 billion compared to Delta in second place at US$2.5bn. Qantas was fifth in the table at US$1.57bn, followed by Ryanair, Air France-KLM, easyJet (estimate), US Airways and Korean Air.
The report suggested there is an “ancillary revenue revolution” in Europe following Air France-KLM’s strategy to make some customers pay for luggage on select routes and its subsequent inclusion in the top 10, alongside developments such as British Airways’ new carry-on only fares and Lufthansa’s faith in Germanwings.
The report said: “The most revealing development of 2012 is the addition of Air France-KLM to this report and the ancillary revenue revolution that it represents for Europe’s global airlines. Economic troubles force airlines to change their playbooks.”
Per passenger, Qantas is leading the way getting US$56.21 primarily through its frequent flier programme, while Jet2 is fourth reaping in US$45.83 per passenger. Virgin Atlantic’s FFP is generating US30.47 per person.
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