Very rare for me to heap so much praise on any airline, let alone an LCC, but after praising Easyjet recently for offering good service to business travelers (only one ‘l’ as I’m writing this post from the US), I’m at it again today. The accounting discussion on ancillaries I was engaging in here was getting pretty boring, but I’ve never before seen the level of breakdown that Easyjet have just released. This detail is anything but boring; interesting to those regularly reading this blog I suppose - too bad if you’ve landed here by accident.
Eye for Travel have a good summary on the breakdown of revenue by category, and how it has changed year on year. I found the following comment interesting.
Total revenue from partner and in-flight activities fell by £0.6 million or 8.9 percent on a per seat basis to £1.33. The main drivers of this were the regulatory change to the sales process for insurance and lower hotel revenue. Income from in-flight sales on a per seat basis increased by 12.3 percent compared to the same period last year. “Regulatory changes to the sales process for insurance products led to a reduction in insurance income of £2 million in the period.”
The regulatory change relates to airlines no longer pre-checking the insurance box in the booking flow. Personally I never had a problem with this, but the regulators did, and now we can partially see the impact on airline ancillary revenue from the change.