Top Ten Airlines Generate as Much as 46% of Sales from Ancillary Revenue
CarTrawler-sponsored analysis shows big jump from five years ago, when the same group of airlines generated 10% to 33% from ancillary revenue. Every year IdeaWorksCompany searches for disclosures of financial results which qualify as ancillary revenue for airlines all over the globe. Annual reports, investor presentations, financial press releases, and quotes attributed to senior executives all qualify as sources in the data collection process.
Southwest is Tops in Annual Reward Rankings, But Survey Shows Fewer Reward Seats Worldwide
The 8th annual Reward Seat Availability Survey ─ now sponsored by CarTrawler ─ also finds
Alaska Airlines has best reward payback among major North American carriers. The steady improvement in airline reward seat availability since 2010 ended with the results from this year’s CarTrawler Reward Seat Availability Survey. Last year 76.6% of reward queries provided access to a saver-style reward seat; this dropped to 72.4% for 2017. The story for US-based consumers is generally positive, while frequent flyer members elsewhere in the world are seeing moderate to significant declines in reward seat availability.
You may also download this FAQ document:
FAQ for 2017 Worldwide Reward Survey
Cash is King: Revenue Now Rules Frequent Flyer Program Accrual
The four largest programs in the world now use revenue based accrual. Learn why American, Delta, Southwest, and United have embraced this new world order. The addition of mileage-earning credit cards forced the airlines to better consider the financial implications. More than 35 years later, revenue now influences every aspect of a frequent flyer program. This report assesses how frequent flyer programs have become very revenue aware in the distribution of miles, points, and rewards to their members.
Ancillary Revenue Goes Mobile: the Best Methods Used by the Top 25 Airlines
IdeaWorksCompany finds Air France, Emirates, Indigo, and Ryanair provide great mobile retailing examples. The latest report from IdeaWorksCompany applies the rise of the mobile age to the ancillary revenue revolution. IdeaWorksCompany researched the in-path booking capabilities of the mobile applications offered by the world’s largest 25 airlines. It’s a varied list which includes traditional global network airlines and eight low cost carriers.
Jazeera Airways Is 2016 Champ for Revenue Innovation and Marketing Leadership
IdeaWorksCompany continues a year-end tradition by identifying the airlines that have shown the greatest prowess in ancillary revenue, a la carte pricing, and loyalty marketing. This year, Kuwait-based Jazeera Airways takes the top spot. Throughout 2016, we assessed the top ancillary revenue producing airlines and the most generous frequent flier programs; our reports described the industry’s service and product innovations; and we offered practical advice for airline executives. Along the way, a select group of five airlines clearly stood apart in their quest for new sources of revenue success.
Airline ancillary revenue projected to be $67.4 billion worldwide in 2016
IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, the leading provider of online car rental distribution systems, project airline ancillary revenue will reach $67.4 billion worldwide in 2016. The CarTrawler Worldwide Estimate of Ancillary Revenue represents a nearly 200% increase from the 2010 figure of $22.6 billion, which was the first year for the ancillary revenue estimate. The CarTrawler Worldwide Estimate of Ancillary Revenue marks the seventh year IdeaWorksCompany has prepared a projection of ancillary revenue activity.
Click here for an infographic summary (JPG file) of key findings.
Top 2016 Merchandising Innovations to Delight Air Travelers and Boost Profits
The most retail-savvy airlines are in continuous pursuit of what works and discarding what no longer sells. Adding to this vortex, and to the blurring of traditional methods, is the expansion of mobile technology, metasearch sites, direct connect, and enhanced GDS capabilities. The latest report from IdeaWorksCompany provides a wide variety of examples − covering traditional airlines, low cost carriers, and suppliers from all over the world – to demonstrate unique methods that generate more revenue from the sale of tickets and ancillary revenue activities:
Switchfly Hotel Reward Payback Survey
IdeaWorksCompany releases results from the second annual Switchfly Hotel Reward Payback Survey, which now includes 6 global programs. During August 2016, IdeaWorksCompany conducted 1,305 reward queries for key hotel brands in six global frequent guest programs: Choice Privileges, Hilton HHonors, IHG Rewards, Marriott Rewards, Starwood SPG, and Wyndham Rewards. For example, Wyndham Rewards returns an average of 13.6% from room night spending as reward stay value. That’s a 143% higher return than the reward value provided by Starwood SPG, which was ranked last among the six hotel loyalty programs at 5.6% for reward payback.
Click here for an infographic summary (JPG file) of key findings.
New CarTrawler Ancillary Revenue Yearbook Catalogs $40.5 Billion in Revenue Boosts for 67 Airlines
“A billion here, a billion there − pretty soon you’re talking real money,” American politician Everett Dirksen once said. That’s precisely the case in the 2016 edition of the CarTrawler Ancillary Revenue Yearbook by IdeaWorksCompany, which reveals a total of $40.5 billion in ancillary revenue, comprising 8.7% of total sales, for 67 airlines covered by the survey. IdeaWorksCompany researched financial filings made by 135 airlines all over the world, discovering 67 which disclosed qualifying revenue activity − four more airlines than in the 2015 Yearbook. Now available free online, the 105-page, 2016 Yearbook provides a detailed global review of a proven revenue source that delivers a whopping $6.2 billion for United Airlines, 36.4% of sales for Wizz Air, and $51.80 per passenger carried by Spirit Airlines.
Southwest, JetBlue Lead Average Reward Price Rankings Among Five Major US Frequent Flyer Programs
Low-cost carriers Southwest and JetBlue continue to offer US flyers the lowest average reward seat pricing, despite an industry shift to dollar-based rather than mileage-based loyalty points accrual. The rankings for the two airlines mirror the results from 2015—and from the year before, when miles flown was the universal accrual method. These findings derive from the IdeaWorksCompany annual Switchfly Reward Seat Availability Survey. In May the firm released reward seat availability rankings for 25 of the world’s largest airlines.