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.
Nov 09

November 9, 2014

Los Angeles Times
Airlines warned not to be “greedy” with passenger fees
The world’s airlines are expected to collect $28.5 billion in passenger fees in 2014, a 20% increase over last year, according to a new study.  The increase is no surprise as the revenue airlines collect from bag fees and charges for food, entertainment and other onboard extras have more than doubled since 2010. But airlines can’t get too greedy with such fees. That warning came from Jay Sorensen, president of IdeaWorksCompany, the Wisconsin-based company that publishes the annual revenue estimate and advises airlines on ways to boost such income.

Nov 03

November 3, 2014

Time
We’re Paying an Extra $5 Billion in Airline Fees This Year
A new study from the airline consultancy firm IdeaWorksCompany projects that ancillary revenues—money generated for sales above and beyond the base price of flights—will hit $50 billion (OK, $49.9 billion) for carriers worldwide in 2014, up from an estimated $43 billion last year and $36 billion in 2012. For 2014, $21.4 billion of the total is expected to come from “frequent flier and commission-based” revenues, which include the sale of frequent flier miles and sales commissions from hotels, rental cars, and travel insurance booked through the airline.

Nov 03

November 3, 2014 – Press Release

Airline ancillary revenue projected to be $49.9 billion worldwide in 2014 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 $49.9 billion worldwide in 2014.  The CarTrawler Worldwide Estimate of Ancillary Revenue represents a massive increase of 121% from the 2010 figure of $22.6 billion.  Earlier this year, CarTrawler and IdeaWorksCompany reported the ancillary revenue disclosed by 59 airlines for 2013. These statistics were applied to a larger list of 180 airlines to provide a truly global projection of ancillary revenue activity by the world’s airlines in 2014.
You may download and use this JPG image:
Worldwide Estimate of Ancillary Revenue GRAPHIC

Oct 15

October 15, 2014

New York Times
Big-Ticket Fliers Poised to Gain Still More Miles
“In an industry where everything is plain vanilla, Delta and United have tossed a bunch of strawberry into the pile,” said Jay Sorensen, founder of the airline marketing company IdeaWorks, based in Wisconsin. Keeping with the ice cream analogy, Mr. Sorensen called the move a “delicious lab experiment” because so much of what will happen is unknown. Airlines around the world, Mr. Sorensen said, are “about to see the power of loyalty on the top and the bottom end.”

Oct 09

October 9, 2014

Bloomberg
Brazilians Stuff Suitcases in Last Free Perk for Fliers
In other parts of the world, airlines are getting even stricter about luggage, from carry-ons to suitcases bound for the cargo hold.  That means planes flying outside Brazil are lighter and more fuel-efficient, said Jay Sorensen, a former Midwest Airlines executive who now runs aviation consultancy IdeaWorksCompany.com in Shorewood, Wisconsin.  In Brazil, “they’re messing with the economics of airlines,” Sorensen said in a telephone interview. Brazil risks bankrupting its airlines by dictating what they can charge for, he said.

Oct 09

October 9, 2014

Bloomberg
Brazilians Stuff Suitcases in Last Free Perk for Fliers
In other parts of the world, airlines are getting even stricter about luggage, from carry-ons to suitcases bound for the cargo hold.  That means planes flying outside Brazil are lighter and more fuel-efficient, said Jay Sorensen, a former Midwest Airlines executive who now runs aviation consultancy IdeaWorksCompany.com in Shorewood, Wisconsin.  In Brazil, “they’re messing with the economics of airlines,” Sorensen said in a telephone interview. Brazil risks bankrupting its airlines by dictating what they can charge for, he said.

Sep 22

September 22, 2014

Financial Review of Australia
Qantas frequent flyer changes ‘bewildering’ for customers
Qantas Airways may have marketed recent changes to its frequent flyer ­program as “simpler and fairer”, but in reality the airline added “daunting ­complexity” to its loyalty scheme, according to a new report from US consulting firm IdeaWorksCompany.

Sep 20

September 20, 2014

Financial Post
Airlines go à la carte: Why travellers should get used to baggage fees and more ‘unbundling’
“We predict that the inclusion of free baggage as a benefit of a fare will disappear worldwide over the course of the next few years,” said Jay Sorensen, president of IdeaWorksCompany, a Wisconsin-based consulting firm that helps airlines generate more revenue through ancillary fees.  According to research by IdeaWorksCompany, global airline ancillary revenue soared nearly 1,200% between 2007 and 2013 as more carriers embraced the concept of “unbundling,” or charging separately for a variety of services.

Sep 20

September 20, 2014

Financial Post of Australia
Airlines go à la carte: Why travellers should get used to baggage fees and more ‘unbundling’
“We predict that the inclusion of free baggage as a benefit of a fare will disappear worldwide over the course of the next few years,” said Jay Sorensen, president of IdeaWorksCompany, a Wisconsin-based consulting firm that helps airlines generate more revenue through ancillary fees.  According to research by IdeaWorksCompany, global airline ancillary revenue soared nearly 1,200% between 2007 and 2013 as more carriers embraced the concept of “unbundling,” or charging separately for a variety of services.