Summary
- Ticket sales among US travel agencies increased to over $8 billion in August 2023.
- The average price of airline tickets has declined for three consecutive months.
- Ancillary sales, including fees for added services, have increased over the past decade.
From August 2022 to August 2023, ticket sales among travel agencies in the US increased to over $8 billion, showcasing the massive demand for air travel across several markets following the pandemic. Ancillary sales also reportedly increased by more than 70%, indicating that airlines, including low-cost carriers (LCCs), have been seeing a rebound in revenue.
With the growth of ticket sales, the average price has declined for three months consecutively. In August, the average airline ticket was priced at just over $500 roundtrip.
“The strength of air travel demand”
The Airlines Reporting Corporation (ARC), a travel data provider, released new data last week, showing US travel agency air ticket sales for August. The data displays that sales increased by 10% from the same month the previous year, resulting in a total of more than $8 billion. ARC said the results are based on monthly sales from nearly 10,500 retail and corporate travel agency locations, satellite ticket printing offices, and online travel agencies ending August 31, 2023. The data does not include ticket sales that were purchased directly through airlines.
Photo: Sorbis/Shutterstock
Passenger trips during the month reached their highest level compared to trips pre-pandemic, at 94% of levels recorded in August 2019. Chuck Thackston, ARC’s Managing Director of Data Science and Research, spoke about the positive trajectory.
“The positive travel trends for August matched what we’re hearing from the largest airlines regarding the strength of air travel demand. Travelers continue to take advantage of lower airfare, particularly in the U.S. domestic market.”
Here are the full results for August 2023:
|
ARC Ticketing Metric |
Total |
Month-Over-Month Variance |
Year-Over-Year Variance |
|---|---|---|---|
|
Total Sales |
$8,048,876,432 |
+6% |
+10% |
|
Total Passenger Trips |
23,427,824 |
+7% |
+8% |
|
US Domestic Trips |
15,045,213 |
+10% |
+6% |
|
International Trips |
8,382,611 |
+2% |
+12% |
|
Average Ticket Price |
$514 |
-3% |
-2% |
With $514 as the average price for a roundtrip domestic flight, August also marked the third month in a row where the average ticket price decreased.
How the data is compiled
The total number of passengers taking a trip from one airport to another on a direct or connecting flight account for ‘passenger trips.’ ARC said newly purchased trips are added, and refunded trips result in a deduction from the results to provide a net view of traveling passengers.
Photo: Charlotte Douglas International Airport
The travel data provider also explained that it accounts for the total number of passenger trips where the itinerary is entirely within the US to determine data for ‘US domestic passenger trips.’ ‘International trips’ include the total number of trips where a portion or all of the travel goes to or originates at airports outside the country.
Total sales include taxes and fees, equalling the full amount that is paid for a ticket, according to ARC.
Ancillary sales, which are the fees for added products or services such as upgraded boarding or seats, checked baggage, unaccompanied minors, and pets, reportedly rose 75% year-over-year to $24 million. Ancillary transactions increased more than 50% to nearly 379,000 over the same period.
Ancillaries have been on an unstoppable rise in the last decade, according to aviation analytics provider OAG. In 2013, global ancillary revenues in the industry were over $40 billion. By 2022, sales dramatically increased to more than $100 billion.