The introduction of basic economy fares has allowed full-service airlines in the United States to experiment with their offerings through different bundles and combinations to see what sticks.
Airlines want to differentiate their basic fare offerings and ancillaries, and richer content supports the evolving shopping and booking experience.
In 2018, ancillaries accounted for 12% of U.S. airlines’ passenger-related revenue, and according to a recent Phocuswright report, this share is expected to continue trending upward.
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U.S. Airlines 2018: Key Developments, written by Michael Gerra, Cathy Walsh and Maggie Rauch, examines the developments and trends impacting the U.S. airline segment
The report also looks at how basic economy fares allow full-service airlines to compete with low-cost carriers, why airlines are turning to metasearch to trim distribution costs and the ever-looming impact NDC will have on the sector.
The report, part of the U.S. Online Travel Overview 2018 series, is FREE for existing Phocuswright Open Access and Global subscribers (learn about how to become one here).