Wednesday, March 16th, 2016 - WiseGuyReports

 Ancillary Revenue Management Global Market 2016 To 2020

WiseGuyReports.com adds “ Ancillary Revenue Management Global Market 2016 to 2020” to its research database.

This market research report presents a comprehensive segmentation of the global ancillary revenue management market by type of carriers (major airlines and low-cost airlines). It outlines the market shares for key regions such as the Americas, APAC, and EMEA. The key vendors analyzed in this report are Amadeus, Navitaire, Sabre, Travelport, and SITA.

Market outlook of the ancillary revenue management market

Technavio’s market research analyst predicts the global ancillary revenue management market to grow steadily at a CAGR of around 8% during the forecast period. Relaxed entry barriers and low fare prices have increased the intensity of competition among airlines globally, driving airlines to generate revenue from ancillary revenue management. Airlines continue to focus on boosting ancillary revenues through technological alliances and partnerships with GDS providers. For instance, Ryanair exhibits higher ancillary service profitability than low-cost airlines such as Delta, as Ryanair's fee structure is simpler and features an easy-to-comprehend, transparent baggage fee structure.  

The rising distribution of ancillaries through e-travel platforms is also driving the growth of this market. Numerous OTAs have integrated ancillary offerings to their booking engines allowing them to offer point-of-sale offerings such as extra baggage, lounge access, Wi-Fi, and other services in select countries. The revenue management solutions offered by vendors to OTAs help automate and standardize the process, capture new sales, reduce errors, and adhere to airline requirements and industry standards.

 Complete report in Detailed @ https://www.wiseguyreports.com/reports/global-ancillary-revenue-management-market-2016-2020

Carrier type segmentation and analysis of the ancillary revenue management market

  • Major airlines
  • Low-cost airlines

The major airlines segment accounted for the largest market share during 2015. There has been tremendous growth in ancillary revenue in this segment, with the major revenue being generated by the sale of frequent flyer program (FFP). American, Delta, and United are some of the major airlines dominating in this segment.

Geographical segmentation and analysis of the ancillary revenue management market

  • Americas
  • APAC
  • EMEA

The Americas led the global market during 2015, accounting for a market share of around 44%. The US is the biggest revenue contributor in this region with big airlines such as Alaska Airlines, Delta, American, Hawaiian, United, Southwest, and US Airways relying on FFP to generate ancillary revenue. For instance, over 70% of Alaska’s ancillary revenue is generated by its mileage plan FFP.

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Competitive landscape and key vendors

Low-cost carriers in this market have been collaborating with established vendors to strengthen their revenue management leading to increased realized revenue from ancillary. Globally, vendors in this market are facing tough competition from niche players who offer analytics and BI products/solutions.

The high vendor competition has led to increased number of M&A, wherein smaller entities are being acquired by, or are being merged with, major players. 

The leading vendors in the market are -

  • Amadeus
  • Navitaire
  • Sabre
  • SITA
  • Travelport

Other prominent vendors in the market include Airline Software, Cartrawler, Concur Technologies (SAP), LemaxPaxport, PROS, Radixx International, Revenue Analytics, Revenue Management Systems, Revenue Matters, and SAS

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Keywords

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