New data analysis from CarTrawler and IdeaWorksCompany says global airline ancillary revenues will balloon to a massive $118 billion this year.
It includes the added fees above and beyond the basic ticket for a flight, such as baggage, priority seating, and commissions on other related services such as hotel bookings or insurance.
It a huge jump from pre-pandemic 2019 levels when it was $109.5 billion.
CarTrawler and IdeaWorksCompany aggregated the ancillary revenues of 125 airlines globally.
The companies say there are several reasons for the big jump in ancillary revenues.
They say low cost carriers now command a 25% market share globally and most have an unbundled pricing policy with extra fees for most services beyond the airline seat.
Also, assigned seat fees are becoming the norm with many full-service carriers adopting them.
Co-branded airliner credit cards have also contributed to the big rise.
“Ancillary revenue continues to be a consistent and predictable revenue driver for airlines in the face of unpredictable fare price fluctuations,” said Aileen McCormack, CarTrawler CCO.
“Low-cost carriers continue to have the edge on driving ancillary revenue streams, accounting for approximately 31% of market share in this area.”
It comes as the Biden Administration clamps down on hidden fees across many consumer sectors including travel.
