The Best and Worst Hotels for Cashing in Rewards Points
The Wall Street Journal
The top performer in a new comparison of hotel loyalty program payback is Wyndham Hotel Group, which revamped its Wyndham Rewards loyalty program 18 months ago to make it a lot more beneficial to travelers. Consulting firm IdeaWorks, which specializes in loyalty programs, compared earning and burning points at six different hotel chains and found average payback at Wyndham is nearly 14%. For every $100 you spend at Wyndham, Ramada, Days Inn, Wingate and other hotels, you can get back $13.60 worth of stays on points.
The Best and Worst Hotels for Cashing in Rewards Points
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.
Airline Fees: The Naked Truth
Airline fees remain a “pain point” for many travelers, and the pain is getting worse. Despite all the focus, however, you still see some public confusion. The latest exhaustive report (104 pages!) from IdeaWorks presents a good starting point for a dispassionate assessment of the realities and myths of airline fees.
Bonus income for airlines
The Irish Times
Ancillary revenue is becoming more and more lucrative for airlines, with $40.5 billion collected by 67 airlines last year, from baggage fees, food, shopping, hotels, car rental, and frequent flyer incentives.
US airlines lead in driving ancillary revenue
Travel Weekly UK
A total of $40.5 billion was made in ancillary revenue, comprising 8.7% of total sales, by 67 airlines covered in a new survey. Revenue from ancillaries delivered $6.2 billion for United Airlines, represented 36.4% of sales for Wizz Air, and $51.80 per passenger carried by Spirit Airlines in the US. The study covers airlines that disclosed revenue in 2015 financial filings from activities such as frequent flier miles sold to partners, fees for checked bags, and commissions from car rentals.
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.
CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany
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. The 105-page 2016 CarTrawler Ancillary Revenue Yearbook by IdeaWorksCompany covers airlines that disclosed revenue in 2015 financial filings from activities such as frequent flier miles sold to partners, fees for checked bags, and commissions from car rentals. This year’s edition also includes a list of the a la carte items sold through Amadeus, Sabre, and Travelport for each of the 67 airlines.
Domestic Airlines add tailwind to ancillary business
The Business Standard – India
According to a survey by US-based consultancy firm IdeaWorks Company, airlines globally earned $26 billion in ancillary revenue in 2015 with US carriers United, American and Delta topping the list. According to the survey, US-based low-cost airline Spirit earned about 43.4 percent of all its revenue from ancillary sources, followed by Allegiant Air and Wizz Air, which earned 37.6 percent and 36.4 percent, respectively, of their revenue from ancillary sources
Airfare price revolution
The West Australian
In its first annual report on the subject, Ideaworks in 2008 estimated airlines around the world were charging an estimated $US13.5 billion a year in ancillary extras. By 2015, that figure had soared to $US59.2 billion, a rise of nearly 450 per cent, with the figure still increasing by around 20 per cent a year. But now, with the oil price below $US50 a barrel, there’s no going back to the old system of inclusive fares. Airlines have sold a la carte pricing to their customers as increasing choice and, in America, customers have responded by awarding airlines with the highest ancillary revenue rates the highest profitability and growth.
Ancillary revenues on the up
Jay Sorensen charts the growth in ancillary revenue rates for airlines and what it means for the future. “My organisation, Ideaworks published the first ancillary revenue review of top-performing airlines back in 2008. The top ten airlines generated $8.4 billion that year. Fast forward to 2015 and the top ten tally has leapt to nearly $26 billion. This group is now a billion-dollar club with annual ancillary revenue from $1billion to $6.2 billion − which was top carrier United’s total