Webinar: The $148B opportunity: ancillary revenue insights and the travel eSIM advantage

Ancillary revenue has grown from $67 billion (9.1% of airline revenue) in 2016 to an estimated $157 billion (15.7%) in 2025, representing a continuous march forward despite pandemic disruptions.

Travel eSIMs, connectivity solutions, and other digital products delivered in real-time via mobile apps represent a fast-growing market (projected $8.7 billion by 2028) with minimal operational costs and high relevance to modern travellers.

Unlike airfares which fluctuate significantly, ancillary revenue streams (bags, seats, branded fares) remain remarkably stable, making them highly valuable components of airline income statements that executives can rely upon.

Despite decades of discussion, airlines still struggle with basic personalisation, showing irrelevant offers and sending inappropriate upgrade emails, while the potential of AI and data-driven customisation remains largely untapped.

The most effective ways to increase ancillary revenue are: optimising baggage fees, managing seat assignments strategically and implementing or refining branded fare structures for carriers offering tiered service options.

Overcomplicated booking paths, unclear terms and conditions and difficult refund processes create friction that leads to abandoned shopping carts and customer frustration, particularly compared to simpler low-cost carrier approaches.