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.
Sep 19

September 20, 2016 – Press Release

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.

Sep 19

September 20, 2016 – Report

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.

Aug 22

August 22, 2016 – Press Release

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.

Jul 29

July 29, 2016

Airfares Are at a 7-Year Low, but Are You Getting a Deal?
US News & World Report
As Jay Sorensen, president of travel industry firm IdeaWorks, puts it: “I think consumers are getting a very good deal. And so are airlines.” When you look at the price of airfare over time, it’s a good value to the consumer. Unlike the years of economic strife for airlines in the wake of the terrorist attacks of Sept. 11, 2011, the industry’s profits continue to climb, enabling investment in improved products and aircrafts.

Jul 21

July 21, 2016

Ryanair’s ancillary revenue hits record level
Irish Examiner
Ryanair generated the sixth highest revenues globally from non-flight ticket items in 2015, according to a new report, which shows the top 10 world airlines pulled in almost $26bn (€23.6bn) in ancillary revenues during the year.  In a newly published list of the top 10 ancillary revenue generating airlines from aviation research group IdeaWorks, the Dublin-based carrier ranks ahead of the likes of Lufthansa, Qantas, and EasyJet and is only dwarfed by US giants United Airlines, American Airlines, and Delta.

Jul 20

July 20, 2016 – Report

2015 Top 10 Ancillary Revenue Rankings
Every year since 2008, 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. Of the 135 airlines reviewed, 67 were found to reveal financial results related to ancillary revenue.  From this list, total airline revenue and ridership data were collected to determine the top ten airlines in overall ancillary revenue, as a percentage of company revenue, and on a per passenger basis.

Jul 20

July 20, 2016 – Press Release

Top Ancillary Revenue Rates Reach $52 per Passenger and $6 Billion per Airline
IdeaWorksCompany 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. Now, this group is a billion-dollar club with annual ancillary revenue ranging from just over $1 billion to $6.2 billion − which is #1 carrier United’s total. Top performer per passenger is Spirit, at $51.80 per customer; Spirit also tops the list for revenue share, at 43 percent of total sales.

Jun 24

June 24, 2016

Analysis: Is the golden era of frequent-flyer benefits over?
Buying Business Travel
Social media comment from travellers who opt for the lowest fares and get the least rewards has, predictably, been highly critical; those with elite status who pay higher fares and get the best rewards, less so.  But as the global airlines have shown with their egregious pursuit of ancillary fees, they’re very much focused on increasing revenues. Total ancillary fees levied by the world’s airlines last year reached a record US$59.2 billion according to the consultancy IdeaWorks, with US airlines alone accounting for a third of this revenue stream.

May 13

May 13, 2016

American and United Ready No-Frills Fares to Take on Discounters
Bloomberg
Stung by competition from ultra-discount carriers, American Airlines Group Inc. and United Continental Holdings Inc. are striking back with cheap, no-frills tickets of their own.  The strategy carries risks for the legacy airlines. American, United and Delta dominate the U.S. and have alliances with global carriers, advantages that would seem to negate the need to compete for the most price-conscious customer, said Jay Sorensen, a former Midwest Airlines executive who is now president of airline consultant IdeaWorksCompany.

May 11

May 11, 2016 – Press Release

Southwest and airberlin Top Reward Rankings but Turkish Airlines and Air China Rise High
The 7th annual Switchfly Reward Seat Availability Survey also finds JetBlue has best reward payback among major North American carriers.  Value-oriented airlines dominate the top tiers of the 7th annual Switchfly Reward Seat Availability Survey.  Two global carriers made significant improvements to their rankings. Turkish Airlines had the 4th best reward seat availability for 2016, which is much improved from its 15th place ranking in 2015. Likewise, Air China showed big improvement by moving to the 10th slot from 18th place in 2015.
You may download and use this JPG image:
Switchfly Reward Seat Availability Survey Infographic