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Ancillary Revenue Forecaster

Forecast your airline's ancillary revenue from key sources like baggage, seat selection, and onboard Wi-Fi. Model different scenarios to understand how purchase rates and pricing changes impact your bottom line.

/ 01

Maximize Profit

Identify your most profitable ancillary products and focus your efforts there.

/ 02

Optimize Pricing

Test the impact of different fee structures on your total revenue.

/ 03

Strategic Bundling

Use data to create attractive product bundles that increase overall spend.

The calculator

Run the numbers

Ancillary Revenue Forecaster

Baggage Fees

% of passengers who purchase baggage.

Blended average fee per passenger.

Seat Selection Fees

% of passengers who pay for seat selection.

Blended average fee for all paid seats.

Onboard Wi-Fi Fees

% of passengers who purchase Wi-Fi.

Blended average fee for all Wi-Fi packages.

Results

Enter values and click Calculate to see results

The theory

Understanding Ancillary Revenue.

Ancillary revenue—revenue from sources other than tickets—is a cornerstone of profitability for modern airlines. It allows for lower base fares while giving customers the choice to pay for the services they value. Forecasting this revenue is key to financial planning.

/ Revenue Sources

This calculator focuses on three core ancillary products:

  • Baggage: Typically the largest source of ancillary revenue.
  • Seat Selection: A high-margin product that allows passengers to choose preferred seats.
  • Onboard Wi-Fi: A growing category with significant potential.

By understanding the purchase rate and average fee for each product, you can build a comprehensive forecast and identify which products have the most potential for growth.

/ Industry standard

Ancillary revenue is a cornerstone of profitability for modern airlines. Understanding the purchase rate and average fee for each product helps identify which products have the most potential for growth.

Questions, answered

Frequently asked questions.

The purchase rate (or take-up rate) is the percentage of passengers who buy a specific ancillary product. You can calculate it by dividing the number of units sold (e.g., number of paid seat assignments) by the total number of passengers for a given period.
This could be due to several factors. Your fees might be too high, your loyalty program might give free seats to too many elites, or your booking process might not effectively present the benefits of paid seating. Analyze your booking funnel to see where customers drop off.
Improve the offering. Ensure the Wi-Fi is reliable and fast. Offer flexible pricing tiers (e.g., a cheap 'messaging only' plan and a premium 'streaming' plan). Also, promote the service effectively before the flight and make it easy to purchase once onboard.
This calculator covers the main 'à la carte' services. Other major ancillary streams include revenue from co-branded credit cards, commissions from hotel/car rental bookings, onboard food and beverage sales, and travel insurance. These are often managed and forecasted separately.
'Unbundling' is the strategy of removing items from the base fare (like checked bags or seat selection) and selling them separately. This allows for a lower advertised ticket price, which is attractive to price-sensitive customers, while generating ancillary revenue from those who value the unbundled services.
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