26 Oct 2016

Ancillary spend by passengers on airlines has many regional differences

Passengers realise that the air ticket is not what it used to be and having to buy ancillary services is now part of the process of a trip.

Yet how do passengers vary in different regions around the world? And what are they willing to spend their money on?

Sabre asked 1,500 travellers from 20 countries to disclose how much they are happy to spend on additional products, and what are seen as vital elements for which they would be part with cash.

At a global level, extra legroom and seat selection are the most important items for passengers.

But drill down into the various global regions and the results differ substantially, as this chart shows:

sabre-ancillaries

Passengers in Africa are currently the highest spending travellers of ancillary products, averaging around $95 per trip.

They also hold the top spot for how much they are willing to spend ($144).

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The study also found that Latin American passengers remain the biggest champions of the travel agent model, with almost half (48%) still preferring to book with a consultant.

The figure declines to 33% for Europeans, with all other regions also under the 40% mark.

Dino Gelmetti, vice president for EMEA at Sabre Airline Solutions, says airlines “know what their travellers want based on the data they have of past purchases”.

“Yet so much of this data remains unused today. However, by leveraging the latest technology, airlines can unlock this data and show they know their travellers by offering the right products at the right time and tailoring a personalised experience that will improve customer loyalty and generate much-needed revenue.”

NB: Passengers meal image via FreeImages.