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.
Jan 15

January 15, 2018 – Press Release

Allegiant Air Is 2017 Champ for Revenue Innovation Leadership
IdeaWorksCompany continues an annual tradition by identifying the airlines that have shown the greatest prowess in ancillary revenue, a la carte pricing, and loyalty marketing.  This year, Las Vegas-based Allegiant Air takes the top spot.  Throughout 2017, we assessed the top ancillary revenue producing airlines and the most generous frequent flyer programs; our reports described the industry’s service and product innovations; and we offered practical advice for airline executives.  Along the way, a select group of airlines clearly stood apart in their quest for new sources of revenue success.  These Top 5 Revenue Innovation Champs for 2017 represent the creativity of the front line employees and management teams who delivered exceptional results during the year

Dec 17

December 17, 2017

What Does Your Airfare Actually Buy?
New York Times
Revenue from fees and other payments is “growing every year because it works,” said Jay Sorensen, the president of IdeaWorksCompany, a consulting firm that focuses on the airline industry.  According to a report his company released this fall, the airlines made more than $82 billion in ancillary revenue — fees from passengers and other payments from partners like credit card companies and hotels — in 2017. That is about $46 billion more than five years ago. The report, sponsored by CarTrawler, a company that provides car rental recommendations on many airlines’ websites, used data released by 66 airlines last year to extrapolate the likely ancillary revenue of 184 carriers worldwide.

Dec 03

December 3, 2017

Air Canada’s ‘ancillary’ fees for customers add up to big bucks
CBC News – Canada
Global airlines are expected to earn a record $82 billion US this year by charging customers extra for everything from seat assignment to baggage fees to travel commissions.  And Air Canada is among the top ten airlines in the world when it comes to earning this so-called ancillary revenue, racking up nearly $1.18 billion US last year, according to reports from IdeaWorksCompany, a U.S. research company that tracks airline revenue.

Dec 02

December 2, 2017

Report projects 264 per cent rise in airline fee income since 2010
Business Traveller
The CarTrawler Worldwide Estimate of Ancillary Revenue report from IdeaWorks Company, a consultancy on airline ancillary revenues, and CarTrawler, a provider of online car rental distribution systems, included income earned from a broad range of sources such as hotel booking commissions, the sale of frequent flyer miles to partners, and the provision of a la carte services like checked baggage, premium seating, and priority boarding.

Nov 27

November 28, 2017 – Press Release

Airline ancillary revenue projected to be $82.2 billion worldwide in 2017
The CarTrawler global estimate forecasts 22% increase above 2016, with $57 billion of the total composed of a la carte fee activity.  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 $82.2 billion worldwide in 2017. The CarTrawler Worldwide Estimate of Ancillary Revenue represents a 264% increase from the 2010 figure of $22.6 billion, which was the first annual ancillary revenue estimate.
Click here for an infographic summary (JPG file) of key findings.

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.