Articles about IdeaWorksCompany

Low Cost and Regional Airlines Magazine ─ LARA

“Three areas of innovation have caught my attention ─ lounges, super apps and booking flexibility,” says Jay Sorensen, President of IdeaWorksCompany and an expert on airline ancillary revenues.  These innovations are highlighted in IdeaWorks’ and CarTrawler’s Airline Revenue Innovations:  A Global Sample of the Coolest Products and Services.

Wall Street Journal

The new hot section on the plane isn’t at the very front.  With offerings labeled Premium Plus, Premium Select or Premium Economy, airlines are expanding these sections, which typically come with roomy seats, early boarding, free alcohol and better meals.  Airlines say they appeal to travelers with more disposable income, especially on long-haul flights where business-class seats can run thousands of dollars more.  “I refer to it as an upper-middle cabin for the upper-middle class,” says Jay Sorensen, an industry consultant and president of IdeaWorksCompany.  These sections appeal to travelers on work trips with budget-conscious employers, and vacationers who want some comforts without shelling out for business class.

PhocusWire

Airline ancillary revenue increased more than 50% in 2022 versus 2021 and beat pre-COVID levels.  The increase, released in the CarTrawler Yearbook of Ancillary Revenue in partnership with IdeaWorks Company, is a mark of the recovery in the airline industry with carriers reaping almost $69 billion in revenue from add-ons and loyalty programs compared to $45 billion in 2021.  The report, which analyzed 65 airlines, also revealed that ancillary revenue was up by about $10 billion versus 2019 levels.

BTN – Business Travel News

The airlines with the most ancillary revenue collected $68.7 billion in 2022, an increase of 51.3 percent year over year, according to a new report from airline ancillary strategy firm IdeaWorksCompany.  To produce the 2023 CarTrawler Yearbook of Ancillary Revenue, released Wednesday, the company scoured financial reports and data from 65 airlines that report ancillary revenue. The year-over-year comparison used just the 61 airlines that also appeared in last year’s edition.

Irish Independent

Ryanair ranks among the top five airlines in the world in terms of the revenue it generates from ancillary revenues that include everything extra that passengers pay for, from a cup of coffee on board to seat selection, according to a new report from Dublin-based CarTrawler.  CarTrawler offers technology solutions to global travel firms for services such as car hire. Its deputy chairman is Willie Walsh, the former CEO of Aer Lingus owner IAG.  Mr Walsh is currently the director general of the International Air Transport Association.  CarTrawler’s report in conjunction with IdeaWorksCompany shows that total ancillary revenue generated by the 65 airlines rose by more than 50pc in 2022 versus 2021, from $45.4bn to $68.7bn (€65.3bn).

Forbes

Airlines do more than just move people across borders.  They connect economies, enable businesses to flourish, boost tourism and support countless other sectors indirectly.  The sheer number of employees in the aviation sector is a testament to its vital role in the global economy. Every flight taken supports jobs, fuels growth and underscores the importance of a connected world.  Based on the 2023 Allianz Partners Big Book of Travel Data by IdeaWorks, here are the top 10 airlines, ranked in descending order by their number of employees at the end of 2022.

OAG Aviation

Ancillary revenues are not just a supplemental income source for airlines but have evolved into a critical driver of financial robustness.  Comprehensive research conducted by IdeaWorks and CarTrawler illustrates this shift.  Over the span of less than a decade, global ancillary revenues dramatically rose from $42.6 billion USD in 2013 to over $102 billion USD in 2022. Even more impressive, 2022’s figures almost matched 2019’s record of $109.5 billion USD, despite the disruptions caused by the global pandemic.  This dependency on a strong ancillary segment becomes clear when we delve into the proportion of total airline revenue that is derived from ancillaries. In 2022, a historic high was reached, with ancillary revenues accounting for a staggering 15% of total airline revenue.

Air Transport World

Ancillary fees have become a significant part of how almost all airlines generate revenue.  In the air transport business, they really started with budget airlines.  Ryanair in Ireland and Spirit Airlines in the US, which offered passengers the cheapest base ticket along with optional fees for add-ons that people wanted.

Air Transport World – ATW

Ancillary fees have become a significant part of how almost all airlines generate revenue.  In the air transport business, they really started with budget airlines like Ryanair in Ireland and Spirit Airlines in the US, which offer passengers the cheapest base ticket along with optional fees for the add-ons that people wanted.  In 2019, according to a report by IdeaWorksCompany and CarTrawler, worldwide airline ancillary revenue hit an all time record of $109.5 billion.  While that slumped to just below $60 billion in 2020, the first year of the pandemic, it was back up to almost $103 billion in 2022.

Investment Week

This year, total global ancillary revenues are forecast to come close to the record high set in 2019. According to consultancy firms IdeaWorks and CarTrawler, which monitor these fees, airlines are on track to collect $102.8 billion worldwide, up from $65.8 billion in 2021 and a stone’s throw from 2019’s $109.5 billion.  Even though ancillary revenues are expected to fall short of the all-time high in dollar terms, they will continue to represent a greater share of airlines’ total revenues, IdeaWorks writes. In 2022, ancillary fees are forecast to represent 15 percent of the industry’s total sales, up from 14.4 percent in 2021, 13.6 percent 2020 and 12.2 percent in 2019.