News & Research

The latest from IdeaWorksCompany.

Listed below are the most recent posts to the website.  Click on any item (in blue font) to access our latest reports, press releases, and news items.  Or use the menu to the right to browse the library of reports, articles featuring IdeaWorksCompany research, and archive of press releases.
Mar 20

March 21, 2017 – Report

Cash is King: Revenue Now Rules Frequent Flyer Program Accrual
This report assesses how frequent flyer programs have become very revenue aware in the distribution of miles, points, and rewards to their members. IdeaWorksCompany researched the accrual and reward methods of the world’s largest 25 airlines and their frequent flyer programs. The list has airlines from all over the globe, including alliance members, non-aligned airlines, and low cost carriers.

Mar 20

March 21, 2016 – Press Release

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.

Feb 21

February 21, 2017 – Press Release

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.

Feb 21

February 21, 2017 – Report

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.  This 15-page report is the first installment of the 2017 Thought Leadership Series on Revenue and Loyalty and is sponsored by CarTrawler.

Dec 28

December 28, 2016

Here’s Why Alaska Airlines Is Keeping Its Generous Frequent Flyer Program
Skift
“There is a component of the marketplace that is very sizable — perhaps 50 percent —that will only consider price, even with the inconvenience of a connection versus a nonstop,” said Jay Sorensen, an expert on loyalty at IdeaWorksCompany who has consulted for several airlines, including Alaska. “But frequent flyer programs have never seen designed to win everyone. They have been designed to win at the margins.”

Dec 18

December 19, 2016 – Press Release

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.

Dec 02

December 2, 2016

Airlines to charge for food, seats and other facilities to up ancillary income
The Star, Malaysia
EMIRATES, the world’s largest airline by international passenger traffic in 2015 which saw a 75% drop in profit for the six months to September this year, is now charging a seat assignment fee for its lowest price fares.  Come Jan 11, British Airways will start charging for snacks and drinks for its European flights on economy class, complimentary now, on short-haul flights defined as five hours or less.  This is part of the plan to grow ancillary income, which is non-ticket sources such as baggage fees, on-board food and services, seating, selling frequent flier miles to parties and even early boarding.  A recent report by ancillary revenue consultancy, IdeaWorks, and online car rental booking company, CarTrawler, predicts that ancillary incomes will reach US$67.4bil this year. This is a 200% increase from US$22.6bil in 2010. It based its projections on the ancillary revenue activity of 178 global airlines.

Dec 01

December 1, 2016

Airlines expected to rake in $US67.4b globally from extra lucrative services
National Business Review – New Zealand
The amount airlines make from charging travellers for extras such as in-flight food and drink or selecting a seat with more leg room, is forecast to rise by 13.8% this year to $US67.4 billion.  The projection, from airline ancillary revenue consultancy IdeaWorks and online car rental booking company CarTrawler, covers 178 airlines. They predict the additional lucrative income airlines worldwide make from travellers has risen nearly 200% since 2010 and now accounts for an estimated 9.1% of airline revenue globally.