ARC Report: U.S. Travel Agencies Navigate Dip in Air Ticket Sales, Yet Ancillary Revenues Soar in October

A recent report from Airlines Reporting Corp. (ARC), a travel intelligence company, unveiled insights into the air travel landscape for October. Despite a two-percent decrease in total air ticket sales compared to October 2022, the month saw a four-percent rise in the total number of passenger trips, reaching 21.7 million. This boost was primarily driven by a five-percent increase in U.S. domestic air travel.

Steve Solomon, Chief Commercial Officer at ARC, commented on the findings, stating, “October’s air travel data looked similar to 2022 with a slight decrease in sales and passenger trips from the prior month. Despite month-over-month declines, the growth in passenger trips compared to last October reflects sustained demand for domestic and international travel.”

The report highlighted a noteworthy surge in ancillary sales for October 2023, experiencing a significant 26-percent year-over-year increase, climbing from $16.7 million to $21.1 million. The actual number of ancillary transactions also saw an impressive rise of 28 percent, totaling 364,678 during the same period. Ancillary sales encompass add-on products and services like seat upgrades, checked bags, unaccompanied minor fees, and pet-in-cabin fees.

Key data points from the agencies’ air ticketing report for October 2023 are as follows:

• Total sales: $7.2 billion (-5% month-over-month, -2% year-over-year)
• Total passenger trips: 21.7 million (-2% month-over-month, +4% year-over-year)
• U.S. domestic trips: 14.2 million (-1% month-over-month, +5% year-over-year)
• International trips: 7.5 million (-3% month-over-month, +2% year-over-year)
• Average ticket price: $557 (+4% month-over-month, -4% year-over-year)

It’s important to note that the data provided does not encompass air travel tickets purchased directly from airlines. The report is based on information gathered from 10,480 U.S. retail and corporate travel agency locations, satellite ticket printing offices, and online travel agencies.