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 08

November 9, 2015 – Press Release

Airline ancillary revenue projected to be $59.2 billion worldwide in 2015
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 $59.2 billion worldwide in 2015. The CarTrawler Worldwide Estimate of Ancillary Revenue represents a giant increase of 163% from the 2010 figure of $22.6 billion, which was the first year for the ancillary revenue estimate.

Oct 26

October 27, 2015 – Press Release

Airlines Want to Become the of Travel
The forever quotable Michael O’Leary, CEO of Ryanair, motivated his competitors when he recently said, “We want to become the of travel in Europe, with a whole load of additional services: price comparison, cut-rate hotels, discounted football tickets, concert tickets.” It’s a sentence that instantly conveys why airline executives are eager to learn more about airline merchandising.  The latest report issued by IdeaWorksCompany is designed to prepare industry professionals for the decision-making required to take merchandising to the next level with examples from the world of airline retail.

Oct 26

October 27, 2015 – Report

The Airline Manual for Merchandising
The basic fare with a la carte extras has given way to bundling, branded fares,and the promise of personalized pricing. Visit the websites of leading airline retailers today and you will see a robust display of various pricing methods. Consumers encounter branded fares, service bundles, subscription plans with prices that are fixed, flexible, or dynamic. Someday they will also encounter pricing which is aimed at them as individual consumers. The latest report issued by IdeaWorksCompany is designed to prepare industry professionals for the decision-making required to take merchandising to the next level with examples from the world of airline retail.

Oct 21

October 21, 2015

Hotel Rewards Programs: The Best and the Rest
Wall Street Journal
But Marriott is better than most, and other chains offer good deals if you know how to play the game. The study found 54% higher loyalty-program payback on average from a stay at a Marriott hotel than from a stay at a Starwood property such as Sheraton.  “Hotels value their currency—points—in a certain way, and Marriott has chosen to value its currency higher than the competition,” says Jay Sorensen, president of consulting firm IdeaWorks Co., which conducted the study.

Oct 21

October 21, 2015

This Hotel Company Is Best at Rewarding Loyal Customers
Money Magazine
If you’re a loyal Marriott customer, pat yourself on the back. According to a new study from the consulting firm IdeaWorks, Marriott’s rewards program gives loyalty members the most generous payback for future room stays of any hotel company. The average return for money spent on Marriott is 9.4%, meaning that for every $100 spent with Marriott, a loyalty member can expect $9.40 worth of value toward a future stay.

Oct 21

October 21, 2015 – Press Release

Marriott Rewards Found to Offer Best Reward Payback Among Leading Global Hotel Loyalty Programs
Marriott Rewards returns an average of 9.4% from room night spending as reward stay value in the first Switchfly Hotel Reward Payback Survey. That’s a 54% higher return than the reward value provided by Starwood SPG, which was ranked last among the four hotel loyalty programs at 6.1% for reward payback.  During July 2015, IdeaWorksCompany conducted 1,440 reward queries for key hotel brands in four global frequent guest programs: Hilton HHonors, IHG Rewards, Marriott Rewards, and Starwood SPG.  The result provides an average “reward payback” for each program, which is described in this press release.
You may download and use this JPG image:
Switchfly Hotel Reward Seat Survey 2015 Graphic

Sep 13

September 14, 2015 – Press Release

2014 Airline Ancillary Revenue Activity Surpasses $38 Billion, Up Nearly 21 Percent
IdeaWorksCompany researched financial filings made by 130 airlines all over the world, 63 of which disclosed qualifying revenue activity, to reveal that ancillary revenue reported by these airlines was $38.1 billion for 2014. That represents a more than $35.6 billion increase since 2007, and the 2014 number is up 20.9% over $31.5 billion from 2013.  The 2015 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany, now available free online, provides the most detailed global assessment of a bottom-line-booster that can represent 38.7% of a carrier’s revenue, as it does for Spirit Airlines in the US, or $56.28 per passenger for in the UK, and $5.86 billion for global behemoth United Airlines.

Sep 13

September 14, 2015 – Report

2015 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany
The 2015 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany examines 63 airlines that disclosed revenue in financial filings during 2014 from sources such as frequent flier miles sold to partners, fees for checked bags, and commissions from car rentals.  The Yearbook’s individual airline listings clarify the type of ancillary revenue activity for each carrier.  New for 2015 is a list of the a la carte items sold through Amadeus, Sabre, and Travelport for each of the 63 disclosing airlines.

Aug 11

August 11, 2015

European Legacy Airlines May Experience Ancillary Pains
Wall Street Journal
Lufthansa will become the first European legacy airline to unbundle services by introducing a three-tier fare system starting from October. This allows the company to compete more directly on the actual fare but also to charge more for non-ticket items like checked bags and seat booking.  Such services incur minimal costs and therefore can add a very profitable revenue stream for airlines. So-called ancillary revenues jumped 21% in 2014 globally from a year earlier, according to industry consultant IdeaWorksCompany and online booking engine CarTrawler.

Jul 14

July 14, 2015

A defining moment for measuring ancillary revenue?
IdeaWorks has released a summary of its latest look at airline ancillary revenues, saying that it will change its definition to include fare families.  The headline findings from 2014 come as little surprise – revenues are up, low-cost carriers are at the forefront but legacy airlines are catching up, Europe and US are the most active regions.  The report, sponsored by CarTrawler, leads with the statement that “2014 Airline Ancillary Revenue Leaps to $38.1 Billion – Up Nearly 21% in a Year” – an impressive increase, although the $38.1 billion is based on financial filings from 63 airlines, whereas last year the total came from 59 airlines.