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.
Oct 31

October 31, 2017 – Report

2017 Top Merchandising Innovations to Delight Passengers and Boost Profits
The 2017 merchandising report, released today by IdeaWorks and CarTrawler, describes how innovation in other industries, and within the travel business, can help airlines delight travelers and boost profits. The following are six examples from the report:  Allegiant’s new Florida condo resort, Worldwide connections by easyJet, Delta’s baggage tracking app, Tui’s (Netherlands) mobile solution for buy on board, Jeju Air’s sleeping seat package, and the Clube Smiles subscription program by GOL.

Oct 31

October 31, 2017 – Press Release

2017 Top Merchandising Innovations to Delight Passengers and Boost Profits
New report explores how airlines are creating profitable products and services, including examples from Allegiant, Delta, easyJet, Gol, Jeju Air, and Tui Netherlands.  Airlines have always focused on the number of seats they sell. It’s similar to auto manufacturers’ fascination with selling cars, rather than focusing on the business of transporting people. Likewise, carriers shouldn’t focus solely on airline seats, but rather on the entire time a consumer spends away from home. Instead of claiming a small piece of this business, airlines could broaden their agendas to become complete retailers of travel.

Oct 05

October 5, 2017

Wyndham Rewards tops list for loyalty program reimbursement
Hotel Management
The third annual “CarTrawler Hotel Reward Payback Survey” was conducted by
IdeaWorksCompany and analyzes what guests earn back from hotel bookings. The study sifted through 1,350 reward queries from six reward programs: Best Western Rewards, Hilton Honors, IHG Rewards Club, Marriott Rewards, Starwood SPG and Wyndham Rewards. As part of the process, the lowest reward price in points was recorded alongside the corresponding room price in U.S. dollars.

Oct 04

October 4, 2017

The Best and Worst Hotels for Cashing in Rewards Points for 2017
Wall Street Journal
A new study shows significant declines in buying power at some major hotel programs, with the number of points needed to book rooms rising even as the dollar cost of a room drops. The study calculates the payback you get from staying at major hotel chains by comparing the price you pay in cash for rooms and how many points it takes to book the same room. IdeaWorks, a consulting firm, conducted 1,350 reward queries at six big hotel companies (none of them clients). Travel technology company CarTrawler sponsored the study.

Oct 04

October 4, 2017 – Press Release

Wyndham Rewards Offers More than Double the Payback Among Six Leading Hotel Loyalty Programs
Wyndham Rewards returns an average of 16.7% from room night spending as reward stay value in the third annual CarTrawler Hotel Reward Payback Survey. That’s 3+ points higher than the brand’s 2016 result and a 211% higher return than the reward value provided by Starwood’s SPG, which was ranked last among the six hotel loyalty programs at 5.4% for reward payback.  During August 2017, IdeaWorksCompany conducted 1,350 reward queries and calculated “reward payback” for key hotel brands in six global frequent guest programs: Best Western Rewards, Hilton Honors, IHG Rewards Club, Marriott Rewards, Starwood SPG, and Wyndham Rewards.
Click here for an infographic summary (JPG file) of key findings.
Click here to view the 10-page report.

Oct 04

October 4, 2017 – Report

2017 CarTrawler Hotel Reward Payback Survey
During August 2017, IdeaWorksCompany conducted 1,350 reward queries for key hotel brands in six global frequent guest programs: Best Western Rewards, Hilton Honors, IHG Rewards Club, Marriott Rewards, Starwood SPG, and Wyndham Rewards. For each query, the lowest reward price in points was recorded along with the corresponding room price in US dollars. The value provided by points was adjusted to consider the different rates of point accrual for the programs.

Sep 19

September 19, 2017 – Yearbook

2017 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany
IdeaWorksCompany researched financial filings made by 138 airlines all over the world, discovering 66 which disclosed qualifying revenue activity. Airlines joining the list for 2017 include Azul, Eurowings, Jejuair, Jet Airways, South African, and Vietjet. Now available free online, the 110-page, 2017 Yearbook provides a detailed global review of a proven revenue source that delivers a whopping $6.2 billion for United Airlines, 39.4% of sales for Wizz Air, and $49.89 per passenger carried by Spirit Airlines.  The survey covers airlines that disclosed revenue in 2016 financial filings from activities such as frequent flyer miles sold to partners, fees for checked bags, and commissions from car rentals. This year’s edition includes a list of the a la carte items sold through Amadeus, Sabre, and Travelport for each of the 66 airlines.

Sep 19

September 19, 2017 – Press Release

New CarTrawler Ancillary Revenue Yearbook Shows $44.6 Billion in Revenue Boosts for 66 Airlines
IdeaWorksCompany researched financial filings made by 138 airlines all over the world, discovering 66 which disclosed qualifying revenue activity. Airlines joining the list for 2017 include Azul, Eurowings, Jejuair, Jet Airways, South African, and Vietjet. Now available free online, the 110-page, 2017 Yearbook provides a detailed global review of a proven revenue source that delivers a whopping $6.2 billion for United Airlines, 39.4% of sales for Wizz Air, and $49.89 per passenger carried by Spirit Airlines.

Sep 18

September 18, 2017

Airlines look to take flight with lucrative extras
Financial Times
Over the past decade, so-called ancillary fees have experienced huge growth. The top 10 airlines, ranked by total ancillary revenue, generated $2.1bn in 2007. In 2016, this had grown to more than $28bn, according to research by IdeaWorksCompany and CarTrawler.  Among the most successful groups at selling ancillary services are United, which generated $6.2bn in revenue last year, Delta, which generated $5.17bn, and American, which generated $4.9bn.  Globally airlines are estimated to have earned $67.4bn of income from ancillaries last year, representing about 9.1 per cent of airline revenue for 2016, up from 4.8 per cent in 2010.

Sep 15

September 15, 2017

Frequent flier programs generate profits for airlines and frustration for travelers
Los Angeles Times
Jay Sorensen, president of IdeaWorks Co., a consultant on boosting airline revenue, called frequent flier programs a “tremendous cash cow” for the airlines.  In a recent report, Sorensen estimated that the nation’s top four airlines — American, United, Delta and Southwest — generated a combined $9.5 billion in revenue last year from frequent flier programs.  “The programs have a huge impact on the bottom line for airlines,” he said. “They simply can’t do without them.”