Global Airline Ancillary Services Market 2017-2021

Overview of the global airline ancillary services market

As per Technavio’s market research report, the global airline ancillary services market is foreseen to grow at a CAGR of above 15% during the forecast period. One of the primary drivers for the market’s growth is the rising investments in in-flight connectivity solutions. Airline operators are concentrating on setting up a wireless architecture that connects all the on-board passengers with a new range of options for entertainment and connectivity. With technological advancements, all the expensive traditional set ups for in-flight connectivity is presently substituted with sensor-based systems that can be configured for providing in-flight entertainment (IFE) solutions to the passengers. Therefore, owing to the rising demand for IFE solutions, the global airline ancillary market is anticipated to witness increased growth during the forecast period.

In terms of geography, the Americas led the global airline ancillary services market during 2016 and is expected to grow higher over the next four years. Factors like modernization and improvement of frequent flyer program (FFP) schemes drive the market’s growth in the US and other countries in the region. For instance, in 2016, Alaska Airlines announced certain changes in its existing FFP mileage scheme. As per new scheme, the passengers can book a flight with fewer miles compared with the existing one, and earn more points while flying on certain routes served by the airline and its global partners. Therefore, such developments are expected to drive this market in the Americas during the forecast period.

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Competitive analysis and key vendors

With numerous players competing for the market share, the vendors in global airline ancillary services market compete based on product offerings, cost, and technological advancements. Moreover, to sustain and progress in this highly competitive market, the product offerings should be unique and through a clear and distinguished value proportion. Thus, Technavio’s market research report predicts that the growing global economy along with mounting passenger traffic will drive the market’s growth during the forecast period and making it a perfect time to unveil new products or redesign product offerings.

Key vendors in the market are:

• American Airlines Group (AAG)
• Delta Airlines
• KLM Royal Dutch Airlines
• Southwest Airlines
• United Continental

Other prominent vendors include Alaska Airlines, easyJet, Lufthansa Group, Ryanair DAC, Qantas Airways, and Emirates.

Segmentation by service type and analysis of the airline ancillary services market

• Global airline ancillary services market for frequent flyer program (FFP) miles sales
• Global onboard retail and other a la carte services market
• Global airline ancillary services market for baggage fees
• Global airline travel retail market

During 2016, the global airline ancillary services market for FFP miles sales dominated the market and is expected to continue the dominion over the next four years. The main factor that drives the growth of the market is the wide range of loyalty benefits offered by the airlines to attract more passengers in their individual routes.

Segmentation by airline types and analysis of the airline ancillary services market

• FSCs (Full-service carriers)
• LCCs (Low-cost carriers)

As per Technavio’s market research report, the FSCs led the global airline ancillary services market in 2016. The major share of the FSCs revenue is generated by offering a wide range of a la carte services to its customers and FFP miles leading to the growth of the FSCs segment globally.

Growth drivers, challenges, and upcoming trends: Rising demand for premium economy class

The shifting passenger preferences have elevated the need for airlines to look for more options for travel. The rising incomes have led the price-sensitive passengers toward comfort luxury travels. This, in turn, opened opportunities for the airlines for better incomes and set up an intermediate option with extra space and comfort levels for a premium amount in the economy fare leading to adoption in several airlines.

This report provides a number of factors contributing to the adoption, limitations, and opportunities of global airline ancillary services market. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.

Key questions answered in the report include

• What will the market size and the growth rate be in 2021?
• What are the key factors driving the global airline ancillary services market?
• What are the key market trends impacting the global airline ancillary services market?
• What are the challenges to market growth?
• Who are the key vendors in the global airline ancillary services market?
• What are the market opportunities and threats faced by the vendors in the global airline ancillary services market?
• What are the trending factors influencing the market shares of the Americas, APAC, and EMEA?
• What are the key outcomes of the five forces analysis of the global airline ancillary services market?

Technavio also offers customization on reports based on specific client requirement.

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