At 19.3% CAGR, the Europe Airline Ancillary Services Market is projected to be worth US$ 188,212.30 million by 2030, says Business Market Insights

According to Business Market Insights’ research, the Europe airline ancillary services market was valued at US$ 45,758.75 million in 2022 and is expected to reach US$ 188,212.30 million by 2030, registering a CAGR of 19.3% from 2022 to 2030. Rising preference of air travel by middle-income passengers, benefits of frequent flyer program, start-ups present new ancillary revenue opportunities, and in-flight retail partnerships are among the critical factors attributed to the Europe airline ancillary services market expansion.             

Many start-ups are entering the market with advanced services and investing a huge amount to fulfill the growing demand of their customers. In the global aviation industry, low-cost carriers are gaining immense importance. The robust business models for ticketing, airport services, and onboard services facilitate the low-cost carriers to attract passengers from all classes of society. The increasing demand from passengers for additional services, such as inflight food and beverages, Wi-Fi, and retail, has encouraged several start-ups to come up with additional services to entertain passengers during a long journey. The Future Travel Experience (FTE) brings together the most progressive start-ups, corporates, and scaleups in the air transport industry to provide an exclusive platform to meet the mounting requirement of the passengers. Air France adopted Shoppertainment to offer well-equipped Wi-Fi connectivity to its passengers during long and medium-haul flight journeys. Thus, the implementation of such initiatives by start-ups to provide additional services to the passengers will most likely boost the airline ancillary services market.

On the contrary, cost cutting on airline services is impacting negatively on the growth of Europe airline ancillary services market. 

Based on type, the Europe airline ancillary services market is divided into baggage fees, on-board retail and a la carte services, airline retail, and FFP mile sales. The baggage fees segment held 58.3% market share in 2022, amassing US$ 26.66 billion. It is projected to garner US$ 105.39 billion by 2030 to expand at 18.7% CAGR during 2022–2030.

Based carrier type, the Europe airline ancillary services market is bifurcated into full-service carriers and low-cost carriers. The full-service carriers segment held 67.2% share of Europe airline ancillary services market in 2022, amassing US$ 30.75 billion. It is projected to garner US$ 121.20 billion by 2030 to expand at 18.7% CAGR during 2022–2030.

Based on country, the Europe airline ancillary services market has been categorized into the UK, Germany, France, Sweden, Spain, Russia, Norway, Denmark, Finland, Austria, and the Rest of Europe.  Our regional analysis states that the UK captured 27.9% share of Europe airline ancillary services market in 2022. It was assessed at US$ 12.76  billion in 2022 and is likely to hit US$ 59.90 billion by 2030, exhibiting a CAGR of 21.3% during 2022–2030.

Key players operating in the Europe airline ancillary services market are Air France KLM SA, Delta Air Lines Inc, Deutsche Lufthansa AG, EasyJet Plc, Ryanair Holdings Plc, and United Airlines Holdings Inc, among others.

• In July 2022, easyJet is taking steps to improve the customer experience with a series of initiatives for the summer travel season. These include a dedicated customer hotline for families, extended customer service hours, "Helping Hands" at key airports, and the reintroduction of the Twilight Bag Drop service. The airline aims to provide additional support and convenience to passengers, showcasing its commitment to enhancing ancillary services.

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