Global Ancillary Revenue Management Market 2016-2020
About Ancillary Revenue Management
The dynamic market environment has encouraged airlines to focus on a comprehensive understanding of the relationship between ancillary revenue and airfare revenue. This typically involves the price mix of cheaper fares and additional ancillary services to attract passengers, leading to more revenue from ancillary fees. Such booking systems need a high degree of revenue management in terms of managing the ancillary revenue from on-board entertainment or other services such as travel retail or baggage handling. Ancillary revenue management helps companies determine the right pricing strategy for airlines.
Ancillary revenue management solutions help airlines manage customer information and understand the customer's purchasing patterns, such as preferences for à la carte services or the ability to pay for on-board entertainment services. A rising number of vendors in the market deliver revenue management solutions and related operational services that combine and distribute passenger and ancillary revenue data between resellers, airlines, airports, suppliers and other third parties.
These solutions help companies focus on marketing services, such as communication through emails and text messages, branded web shops, and e-commerce management. Airlines can significantly increase ancillary services' conversion rates and revenue through the use of these merchandising techniques.
Technavio’s analysts forecast the global ancillary revenue management market to grow at a CAGR of 8.2% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global ancillary revenue management market for 2016-2020. This report details spending on solutions provided by third-party service providers to manage ancillary revenue for airlines. The market size includes software solutions and consulting.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Ancillary Revenue Management Market 2016-2020
Technavio recognizes the following companies as the key players in the Global Ancillary Revenue Management Market: Amadeus, Navitaire, Sabre, Travelport, and SITA.
Other Prominent Vendors in the market are: Airline Software, Cartrawler, Concur Technologies (SAP), Lemax, Paxport, PROS, Radixx International, Revenue Analytics, Revenue Management Systems, Revenue Matters, and SAS.
Commenting on the report, an analyst from Technavio’s team said: “Airlines are investing in technologies to transform their businesses in the dynamic air travel market. Many airline companies are working to integrate their GDS systems with ancillary revenue management, as ancillary revenues have become an important revenue channel over the past few years.”
According to the report, many carriers have built a strong reputation among consumers for their on-board activities and entertainment services. This has positively affected their brand positioning and profitability of ancillary services and has become an inseparable part of airlines' ongoing business needs. Therefore, the focus on integrating ancillary offerings with existing booking systems has sharpened.
Further, the report states that the generation of high volumes of data during various processes is a key concern for the travel industry. Long-term information management generates data that is difficult to manage, as it is fragmented across multiple units and functions.
Amadeus, Navitaire, Sabre, Travelport, SITA, Airline Software, Cartrawler, Concur Technologies (SAP), Lemax, Paxport, PROS, Radixx International, Revenue Analytics, Revenue Management Systems, Revenue Matters, SAS.