Ancillary Revenue Management
Publication Date
February 2024
USD 919.16 million
USD 1,406.90 million
USD 974.77 million
Ancillary Revenue Management Market by Offering (Full-Service Carrier, Low-Cost Carrier), Deployment (On-Cloud, On-Premises), End-User - Global Forecast 2024-2030

[198 Pages Report] The Ancillary Revenue Management Market size was estimated at USD 919.16 million in 2023 and expected to reach USD 974.77 million in 2024, at a CAGR 6.26% to reach USD 1,406.90 million by 2030.

Ancillary Revenue Management Market
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Ancillary revenue management is a strategic approach used by various industries to generate additional revenue from goods or services that differ from the core offerings. This includes revenue from baggage fees, seat upgrades, on-board sales, hotel room service, and more. Efficient management of these ancillary services boosts the overall revenue and enhances customer satisfaction by providing more tailored options. The primary driving force behind ancillary revenue management is, motivating businesses to seek additional revenue streams. Furthermore, the rise in consumer demand for personalized services provides an avenue to offer bespoke ancillary services. Technological advancements, especially in digital platforms, allow businesses to market and sell these services more effectively. Despite its potential, ancillary revenue management faces challenges such as pricing strategy, which requires careful consideration to avoid customer dissatisfaction. Integrating ancillary services seamlessly while ensuring a positive customer experience is another significant challenge. Additionally, regulatory issues, particularly in the airline sector, can constrain the scope of ancillary offerings. The evolving consumer preferences toward customized and comprehensive service packages present significant opportunities. Technological advancements, such as AI and machine learning, offer advanced tools for data analysis and personalized marketing, paving the way for innovative ancillary services.

Ancillary Revenue Management Market - Global Forecast 2024-2030
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Offering: Growing preference for LCCs to seek affordability and convenience

Full-service carriers (FSCs) typically offer a wide range of on-board amenities and services, including but not limited to priority boarding, extra baggage allowance, in-flight meals, seat selection, and lounge access. These carriers cater to passengers who prioritize comfort and convenience over cost. Low-cost carriers (LCC) focus on minimizing operational costs to offer lower fares. Ancillary revenue streams for these carriers include charges for checked luggage, seat selection, priority boarding, and on-board purchases. While FSCs focus on delivering a comprehensive and premium service experience, LCCs prioritize operational efficiency and cost-effectiveness. FSCs invest heavily in customer comfort and exclusive services, whereas LCCs offer basic transport services with the option to add ancillary services.

End-User: Significant benefits of ancillary revenue management in insurance and entertainment sector to strengthen customer relationships and loyalty

In the energy and utilities sector, ancillary revenue management plays a crucial role in enhancing companies' profitability. By offering additional services such as equipment maintenance, extended warranties, and energy efficiency consulting, these firms can significantly boost their income beyond traditional utility charges. These strategies help diversify revenue streams and strengthen customer relationships and loyalty. The entertainment industry greatly benefits from ancillary revenue through the sale of merchandise, exclusive content access, VIP experiences, and more. These additional income streams are vital for the sector's sustainability, helping offset the high costs of production and distribution. Ancillary revenue strategies also offer an opportunity for creative marketing and direct engagement with their audience, further enhancing brand value and recognition. In healthcare, ancillary revenue can be derived from a variety of sources, such as elective procedures, wellness programs, and private patient rooms. These services contribute significantly to the financial health of medical institutions. With an increasing focus on holistic care, the potential for ancillary revenue in this sector is expanding, leading to more innovative approaches to healthcare services. The insurance industry capitalizes on ancillary revenue by offering additional coverage options, special riders, and personalized financial products. These offerings provide customers with tailored solutions and also enhance the company's revenue margins. Retail and consumer goods companies leverage ancillary revenue through extended warranties, subscription services, and loyalty programs. These strategies drive additional revenue and also foster customer engagement and repeat business. The telecom sector finds ancillary revenue through value-added services such as cloud storage, digital content, and cybersecurity solutions. As the industry evolves with technology, these additional services become increasingly integral to the core offerings of telecom companies.

Regional Insights

In the Americas, ancillary revenue management is a highly developed practice, significantly contributing to companies' overall revenue, especially in the airline, banking, and hospitality sectors. The adoption of innovative technologies and an intense focus on customer experience drive the growth of ancillary revenues. The United States maximizes ancillary revenue through advanced data analytics and personalized marketing strategies. In contrast, South America is witnessing a gradual increase in the uptake of ancillary revenue strategies, with the travel and hospitality sectors making significant strides. Europe is a major region with a robust ancillary revenue model across many sectors, notably in budget airlines, financial services, and telecom. The region benefits from a strong regulatory framework that supports ancillary revenue growth while protecting consumer rights. The Middle East has emerged as a hub for innovative ancillary revenue practices, particularly in the aviation and hospitality industries, driven by luxury services and digital transformation. Africa's ancillary revenue models are in nascent stages, with significant potential for growth, especially in mobile banking and fintech sectors. Asia-Pacific is experiencing rapid growth in ancillary revenue models, propelled by the digital boom and an expanding middle class. E-commerce, online gaming, and low-cost carriers in countries such as China, Japan, and India are at the forefront of this expansion. The region's diverse cultural and economic landscape presents opportunities and challenges in tailoring ancillary services and products. Technology adoption, such as mobile payments and digital platforms, is significantly influencing the growth of ancillary revenues.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Ancillary Revenue Management Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Ancillary Revenue Management Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments
  • Sabre Launches AI-Powered Airline Retailing Solution to Boost Ancillary Revenue

    Sabre Corporation announced the creation of Sabre Upgrade IQ, a new AI-powered retailing solution that is PSS agnostic. The new product leverages advanced AI/ML technology through Sabre Travel AI to allow travelers to bid for an upgrade to a higher cabin class at any pre-travel stage of the journey. [Published On: 2023-11-28]

  • Transavia France partners with Planitas to drive ancillary revenue growth

    Transavia France, the low-cost carrier, part of the Air France-KLM Group, partnered with Planitas to support the airline’s ancillary revenue efforts by leveraging the value of its data to drive optimized customer-centric offers. This partnership is aimed to transform Transavia France’s price decisions by delivering customer-centric offers that lead to higher ancillary revenue yield, increased customer satisfaction, and a net increase in total revenue to push Transavia’s price decision-making capability. [Published On: 2023-10-07]

  • Plusgrade Acquires Upstay to Expand Ancillary Revenue Solutions

    Plusgrade acquired UpStay to expand its offerings in the hospitality sector and become the global ancillary revenue powerhouse. Through this acquisition, UpStay joined forces with Plusgrade to invest further in its product offerings and enhance its ability to drive ancillary revenue for partners through upselling additional on-property amenities and services. [Published On: 2023-01-31]

Key Company Profiles

The report delves into recent significant developments in the Ancillary Revenue Management Market, highlighting leading vendors and their innovative profiles. These include ACCELYA, Amadeus IT Group, BONFLITE, Book4Time Inc., Bravo Passenger Solutions Pte Limited, Cendyn, Deutsche Lufthansa AG, Farel Inc., FLYR, Inc., Guestlogix Inc., IBS Software, Machefert Group, Omnevo, Plusgrade Inc., PROS, Inc., Quowork Technologies Pvt. Ltd., Revinate, Sabre Corporation, Scale AI, Travelport LTD, Triparound, Virdee, and WNS (Holdings) Ltd..

Market Segmentation & Coverage

This research report categorizes the Ancillary Revenue Management Market to forecast the revenues and analyze trends in each of the following sub-markets:

  • Offering
    • Full-Service Carrier
    • Low-Cost Carrier
  • Deployment
    • On-Cloud
    • On-Premises
  • End-User
    • Energy & Utilities
    • Entertainment
    • Healthcare
    • Insurance
    • Retail & Consumer Goods
    • Telecom

  • Region
    • Americas
      • Argentina
      • Brazil
      • Canada
      • Mexico
      • United States
        • California
        • Florida
        • Illinois
        • New York
        • Ohio
        • Pennsylvania
        • Texas
    • Asia-Pacific
      • Australia
      • China
      • India
      • Indonesia
      • Japan
      • Malaysia
      • Philippines
      • Singapore
      • South Korea
      • Taiwan
      • Thailand
      • Vietnam
    • Europe, Middle East & Africa
      • Denmark
      • Egypt
      • Finland
      • France
      • Germany
      • Israel
      • Italy
      • Netherlands
      • Nigeria
      • Norway
      • Poland
      • Qatar
      • Russia
      • Saudi Arabia
      • South Africa
      • Spain
      • Sweden
      • Switzerland
      • Turkey
      • United Arab Emirates
      • United Kingdom

The report offers valuable insights on the following aspects:

  1. Market Penetration: It presents comprehensive information on the market provided by key players.
  2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
  3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
  4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
  5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

  1. What is the market size and forecast of the Ancillary Revenue Management Market?
  2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Ancillary Revenue Management Market?
  3. What are the technology trends and regulatory frameworks in the Ancillary Revenue Management Market?
  4. What is the market share of the leading vendors in the Ancillary Revenue Management Market?
  5. Which modes and strategic moves are suitable for entering the Ancillary Revenue Management Market?

Table of Contents
  1. Preface
  2. Research Methodology
  3. Executive Summary
  4. Market Overview
  5. Market Insights
  6. Ancillary Revenue Management Market, by Offering
  7. Ancillary Revenue Management Market, by Deployment
  8. Ancillary Revenue Management Market, by End-User
  9. Americas Ancillary Revenue Management Market
  10. Asia-Pacific Ancillary Revenue Management Market
  11. Europe, Middle East & Africa Ancillary Revenue Management Market
  12. Competitive Landscape
  13. Competitive Portfolio
Companies Mentioned
  • Amadeus IT Group
  • Book4Time Inc.
  • Bravo Passenger Solutions Pte Limited
  • Cendyn
  • Deutsche Lufthansa AG
  • Farel Inc.
  • FLYR, Inc.
  • Guestlogix Inc.
  • IBS Software
  • Machefert Group
  • Omnevo
  • Plusgrade Inc.
  • PROS, Inc.
  • Quowork Technologies Pvt. Ltd.
  • Revinate
  • Sabre Corporation
  • Scale AI
  • Travelport LTD
  • Triparound
  • Virdee
  • WNS (Holdings) Ltd.
This FREE sample includes market data points, ranging from trend analysis to market estimates & forecasts. See for yourself.
Frequently Asked Questions about the Ancillary Revenue Management Market
The Global Ancillary Revenue Management Market size was estimated at USD 919.16 million in 2023 and expected to reach USD 974.77 million in 2024.
The Global Ancillary Revenue Management Market to grow USD 1,406.90 million by 2030, at a CAGR of 6.26%
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