ID: MRFR/A&D/5713-HCR | 140 Pages | Published By Swapnil Palwe on April 2023
Airline Ancillary Services Market Size Valued at USD 479.03 Bn, market Grow at a CAGR Of 19.01% by 2020 -2030
Airline Ancillary Service Market Size is Anticipeted to reach USD 479.03 billion by 2030 at a CAGR of 19.01% from 2022-2030.
Ancillary services are additional special requests to enhance the journey of traveling. Many ancillary services can request from travel companies, such as lounge access, baggage, meals, and paid seats.
A strong middle class in developing economies is driving major growth in air travel. This remarkable increase in the number of people who can afford to fly will increase demand. According to the United Nations, the majority of people who have entered or risen to the middle class have been from China and India. Furthermore, as the world recovers from previous economic contractions, demand for air travel is predicted to vary widely. The result of expanding air travel is that more people are now turning to low-cost airlines. So, the airline ancillary services market is becoming more competitive than ever. Players are looking for ways to make more money by providing ancillary services. This market expansion allows low-cost carriers and more exclusive airlines to take advantage of the extensive consumer diversity. However, fuel prices and airport charges are both likely to obstruct the market growth of the global airline ancillary service market during the forecast period. According to the International Air Transport Association (IATA), it's estimated that by 2035, there will be more than 500 million passenger journeys every year in India.
COVID-19 has affected a large section of society. Most people have lost their livelihoods because of this global pandemic. It has affected the growth of several industries. Due to the lockdown situation, airline services have been shut down, which has had a major effect on airline revenue. Moreover, with some countries imposing tough border restrictions, the profit margin and revenues have also been impacted. Supplier networks have also been disrupted, widening the demand-supply gap.
However, the airline's ancillary service market is expected to recover after the pandemic by strategizing properly according to the needs of its market. Moreover, almost all businesses have started operations as governments of major countries have changed travel norms due to improvements in the world's circumstances.
Various factors drive the demand for the Airline Ancillary Services Market in the global market. Also, a sudden increase in air passengers in various emerging countries coupled with the increasing popularity and trend of availing these ancillary services drives the market demand in the global market. Many people enjoy using these prime services which also create more demand all across the globe. Additionally, emerging airlines’ couples with these ancillary services in various emerging countries fuel the market demand.
The rise in demand for Airline Ancillary Services Market in the global market. Extensive research and development going on in this sector provide various growth opportunities in the global market. Moreover, developing technology that can provide more comfort to the passengers creates more market demand. Additionally, advancement in in-flight connectivity solutions coupled with the appearance of the BYOD concept fuels the global market with various growth opportunities during the forecasted period.
Although the Airline Ancillary Services Market is increasing at an increasing rate in the global market during the forecasted period some factors restrict its growth. Increasing fluctuation in the airport charges hampers the growth in the global market as it is not affordable for the population of various underdeveloped countries. Moreover, a constant increase in fuel price also tends to restrict market growth. These ancillary services require huge initial investment which sometimes is not afforded by various airlines especially for those operating in underdeveloped countries. Delay in delivery due to technical issues also restricts the market growth to a great extent.
Value Chain Analysis
The Airline Ancillary Services Market is growing tremendously in the global market owing to various benefits associated with it. It provides more comfort and leisure experience to their passengers. For these prime comfort services, passengers are ready to pay extra which creates more revenue for airlines apart from the one collected through the sale of tickets. It also creates more employment opportunities in regions where labor is abundant.
The Airline Ancillary Services Market has been divided all across the globe based on service type, carrier type, and region.
Based on the Service Type
The market has been divided all across the globe based on the service type into frequent flyer activities, commission-based products, A la carte features, advertising, and many other miscellaneous activities.
Based on the Carrier Type
The market has been divided all across the globe based on the carrier type into the full-service carrier and low-cost carrier. The largest market share in this segment is held by the low-cost service carrier during the forecasted period.
Based on the Region
The market has been divided all across the globe based on the region into the North American region, European region, Asia-Pacific region, Latin American region, and the Middle East and African region.
The Airline Ancillary Services Market has been divided all across the globe based on the region into North American region, European region, Asia-Pacific region, Latin American region, and the Middle East and African region. The largest market share in the Airline Ancillary Services Market in the global market is held by the Asia-Pacific region. Additionally, it is anticipated that this region will remain the fastest-growing region during the review period. Moreover, this region has highly populated countries like India and China which creates more demand in this region. Since there is an abundance of labor that is available at a low cost, North American airlines outsource their work to various Asian countries.
The second-largest market share in the global market is held by the North American region owing to increasing urbanization and industrialization. The fast lifestyle prevailing in this region is another factor that drives the market demand in this region.
The third-largest market share in the global market is held by the European region owing to the presence of various powerful countries like the UK, Russia, Italy, and Germany. Also, the presence of major key players in this region provides various growth opportunities in this region.
The least market share in the global market is held by the Latin American region and the Middle East and African region owing to lack of infrastructure and modernization in these regions.
The most prominent major key players in the Airline Ancillary Services Market all across the globe are mentioned below:
These major key players use various strategies to sustain their market position in the Airline Ancillary Services Market in the global market by going for mergers, and acquisitions, by collaborating, setting up a new joint venture, establishing a partnership, developing a new production process, developing a new product line, innovation in the existing product, and many others to expand their customer base in the untapped market of the airline ancillary service all across the globe.
This global Airline Ancillary Services Market research report information consists of the following elements mentioned below:
This market research report contains factors that drive the growth of the Airline Ancillary Services Market in the global market along with the factors that restrict its growth in the global market. The technical analysis for the growth estimation during the forecasted period is mentioned. The impact of COVID 19 on the sales revenue of the Airline Ancillary Services Market all across the globe is mentioned. The future growth rate in the Airline Ancillary Services Market during the forecasted period is estimated and mentioned.
Travel Agencies, Regulatory Bodies, Research Institutes, IFEC Solution Providers, Civil aviation organizations, air transport associations, airlines, and others.
The improvement in support services offered by the airlines to augment passenger comfort is estimated to define the market’s future growth.
A 12% CAGR is estimated to promote the market’s progress in the forecast period.
Air France-KLM (France), Delta Air Lines, Inc. (U.S.), Alaska Air Group, Inc. (U.S.), Air Canada (Canada), and American Airlines, Inc. (U.S.), are enhancing the market in the approaching period.
The APAC region is likely to lead the charge for the global market in the forecast period.
An attractive revenue level is projected to augment the market in the upcoming period.