Book with Allegiant and be prepared for additional fees. That’s the essence of a report by IdeaWorks and Amadeus noting that the Vegas-based airline generates 29.2% of its revenue from ancillary income such as baggage and seat selection fees, food and in-flight entertainment.
The figure is the highest among airlines surveyed by Shorewood, Wis.-based IdeaWorks and Amadeus, a Spanish transactions processor. The report is based on a review of 47 airlines that released ancillary revenue figures.
According to an article in Vegas Inc. magazine, Allegiant generates significant amounts of ancillary income through its partnerships with hotels in general and Las Vegas resorts in particular.
According to the article, Allegiant sells shows tickets, “in addition to charging baggage and seat-selection fees and convenience costs for booking online or by phone.” The article notes that “customers can dodge booking fees by buying a ticket at the airport.”
United Continental generated the most ancillary revenue, $5 billion, the report said. Other top producers included Delta Air Lines, $3.7 billion; American, $1.95 billion; US Airways, $1.18 billion; and Alaska Airlines, $552.5 million.
Ancillary revenue generated $22 billion for airlines last year, a 96% increase from 2008.