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Global Airline Ancillary Revenue Projected To Rise 22 Percent This Year

Ancillary airline revenue is expected to rise 22 percent this year over 2016, according to global estimates from IdeaWorksCompany, an ancillary revenue consultancy, and CarTrawler, a provider of online car rental distribution systems.

Total ancillary revenue is projected to reach $82.2 billion worldwide. A la carte fee activity comprises $57 billion of the total.

The CarTrawler Worldwide Estimate of Ancillary Revenue shows a 264 percent increase between 2010 and 2017, a $59.6 billion difference.

For major U.S. airlines specifically, ancillary revenues are projected to account for 14.2 percent of total revenues in 2017, compared to 12.3 percent of revenue in 2016. CarTrawler and IdeaWorksCompany said the increase is likely due to an expansion of bundled fare offers and ever-growing frequent flyer revenue. Total ancillary revenue for major airlines in the U.S. is projected to reach $24.6 billion, with $14.3 billion in frequent flyer and commission-based revenue and $10.3 billion in a-la-carte activity.