Increasing Developments in Ancillary Revenue Management Solutions will lead to Excessive Growth Globally through 2021

Published on : Dec 16, 2016

Albany, New York, December 16, 2016: Nowadays, airlines have become increasingly dependent on ancillary revenue in response to rising fuel costs, decreasing yields and increasingly competitive environment. A new forecast report focusing on the management of ancillary revenue for the period 2011 to 2021 has been added to the vast archive of Market Research Hub (MRH) research reports. The report is entitled “Global Ancillary Revenue Management Sales Market Report 2016” and it offers inclusive information of ancillary revenues global market by aiming some key regions, including United States, Europe, China and Japan.

Initially, the report discusses the overview of ancillary revenue management along with its definition and classification. It defines ancillary revenue as the revenue beyond the sale of tickets, which are generated by direct sales to passengers, or indirectly as a part of the travel experience. In airlines, this contains the price mix of cheaper fare along with other ancillary services to attract passengers which further leads to more revenue from ancillary fees. This management also helps companies to determine the right pricing strategy for airlines. Ancillary revenue management solutions also help airlines to manage customer information and understand the customer's buying patterns, such as preferences for à la carte services or the ability to pay for on-board entertainment services. Research analysts have predicted the global market to grow at a high CAGR in coming years.

The market has been segmented on the basis of regions, types and applications. Geographically, the United States is the largest contributor to the market as US passengers spent the most on business travel in 2015. Also, the study observes that with lower penetration of online travelling agencies and fragmented online booking market for ancillary services in Eastern Europe, the ancillary revenue management market in Europe provides substantial growth for travel technology partners and global distribution system (GDS) providers.

It has been observed that the dynamic market environment has encouraged airlines to focus on a comprehensive understanding of the relationship between ancillary revenue and ticket revenue. Now, relaxed entry barriers in air transportations and low fare prices have increased the intensity of competition among airlines globally, driving airlines to generate revenue from ancillary revenue management. Further in the report, key vendors in the market are also mentioned. Some of them are as follows:

  • Amadeus
  • Sabre
  • Navitaire
  • Travelport
  • SITA
  • Airline Software
  • Cartrawler
  • Concur Technologies (SAP)
  • Lemax
  • Radixx International
  • Revenue Analytics
  • SAS

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The report provides detailed information of these key vendors along with manufacturing base, competitors, marketing strategy, product information etc. In the end, factors affecting market, manufacturing cost and industrial chains are also analyzed.

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