The analysts forecast the global airline ancillary services market to grow at a CAGR of 15.02% during the period 2017-2021.
The report covers the present scenario and the growth prospects of the global airline ancillary services market for 2017-2021. To calculate the market size, the report considers the four major sources of ancillary revenue, including revenue generated from the sale of FFP miles, provision of onboard retail and other à la carte services, a collection of baggage fees, and sale of travel retail services. The report also includes a discussion of the key vendors operating in this market.
The latest trend gaining momentum in the market is growing acceptance of BYOD. Installation of fixed or stationary IFE devices necessitates airlines to incur substantial investments in aircraft retrofitting. Vendors, like Panasonic Avionics and Rockwell Collins, offer such stationery IFE systems that are embedded in aircraft seats.
According to the report, one of the major drivers for this market is growing adoption of branded fare options. Globally, airlines have been seeking new and unique pricing strategies that can help them in achieving superior values for their product offerings. Simultaneously, greater emphasis is being laid on building a mass awareness regarding their brands. This is where the strategy of adopting differential pricing approaches, like branded fare, which go beyond basic fare rules comes in picture.
Further, the report states that one of the major factors hindering the growth of this market is High volume of disparate data requires substantial investments in IoT ecosystem. The generation of high volumes of data during various processes is a key concern for the aviation industry. Long-term information management solution generates data that is difficult to manage, as it is fragmented across multiple units and functions.