Idea Works - Building Revenue Through Innovation
Services News & Research Expertise Clients & Projects Team Contact
Library of Free Reports

Press Releases
Media Coverage
Guide and Book Store
Ancillary Revenue Defined

Browse the online library of analysis and research from IdeaWorks.
Click on any item to access our archive of industry analysis, research and presentations.

Library of Free Reports

December 19, 2011

Spirit Succeeds with the World’s Only Fee for Carry-on Bags
IdeaWorks estimates 20% of passengers choose it, generating $50 million annually for the airline.

 

December 1, 2011

The IdeaWorks List of Hotel and Car Rewards for the World's Top-30 Airlines
Online hotel and car rewards are something new for British Airways, Southwest, and 8 more airlines

 

November 17, 2011

The ABCs of EMDs
IdeaWorks explores how airlines manage a la carte transactions with travel agents.

 

September 12, 2011

Loyalty by the Billions
IdeaWorks analyzes how frequent flier programs pour cash into airline coffers.

 

August 8, 2011

Billions of Dollars in Baggage Fees Travel the Globe
In this report, IdeaWorks evaluates how baggage fees are spreading across the globe, describes how these fees are on track to become the industry's largest source of ancillary revenue, and recommends strategies to boost baggage revenue.

 

January 31, 2011

Planes, Cars, and Ancillary Revenues
Car rental powers ahead as a lucrative source of extra revenue for airlines and the travel industry.

January 20, 2010

US Airlines Will Generate Millions from Higher Baggage Fees
Despite consumer gripes, fee hikes still bring in more revenue. IdeaWorks estimates American, Delta, Continental, United, and US Airways will realize annual baggage fee revenue of $1.76 billion.

December 15, 2009

Curiouser and Curiouser: the Wonderland of Changes Wrought by BA
Has British Airways fallen into a rabbit hole or embarked on an adventure of change?

October 14, 2009

Delta, Alaska Airlines, and Aeroplan Create Solutions for the Reward Availability Problem
Innovation and accountability are key factors in addressing an issue that many consumers complain about and many airline executives prefer to ignore.

March 24, 2009

Today’s Cash-Strapped Consumers Demand More - Low Cost Long Haul Flights and Cheap Hotels in Major Cities
IdeaWorks describes why AirAsia X and easyHotel have the right product at the right time, and how airlines and hotels can thrive by deploying an a la carte pricing strategy.

December 1, 2008

More Airlines Worldwide Choosing Revenue-Based Methods
to Serve and Reward Customers

IdeaWorks predicts increased reliance upon a “pay for perks” philosophy for customer services, a la carte features, and frequent flier benefits.

November 19, 2008

Keynote Presentation by Jay Sorensen at the Ancillary Revenue
Airline Conference (ARAC) in Budapest, Hungary

Worldwide Review of Ancillary Revenue Innovation. What works. What didn’t work. What happens next.

September 3, 2008

Testing Consumer Patience - Airline Executives Predict More Fees
IdeaWorks, in cooperation with Terrapinn’s upcoming World Low Cost Airlines Congress in London (www.LowCostAirlinesWorld.com), has conducted its second annual survey of airline executives on the topic of ancillary revenue and a la carte pricing.

August 18, 2008

Frequent Flier Credit Cards Generate More Than $4 Billion for Major U.S. Airlines - A Report from IdeaWorks
Frequent flier programs were launched more than 25 years ago as a tool to identify the highest revenue-producing travelers, establish regular customer communication, and enhance brand loyalty. In today’s revenue hungry environment, airline management now places a greater demand on the profit-producing power of these programs.

July 14, 2008

American Airlines Borrows Ryanair Fee Tactics - An Ancillary Revenue Report from IdeaWorks
American’s recent implementation of checked baggage fees, which appear to have been accepted by passengers, will likely generate annual revenue in excess of $458 million.

February 19, 2008

Ryanair - The Godfather of Ancillary Revenue
Michael O’Leary may crystallized the concept of ancillary revenue back in 2001 when he sought to replace ticket revenue with commissions from retail activities.

August 27, 2007

Buckle Your Seat Belts - Airline Executives Predict More Fees and Plan to Sell More Services via Their Web Sites
63% of airline executives in a worldwide survey say charging fees for services - - instead of including benefits in the price of a ticket - - will become more prevalent.

July 31, 2007

The Great Branding Debate: Is airline branding a waste of money and do airlines really care?
Have low cost carriers, along with the rest of the airline industry, tossed the idea of brand building onto the scrapheap of history? Or, has the concept of branding evolved with the growth of the low cost carrier sector? To answer these questions, IdeaWorks, in cooperation with airline conference organizer Terrapinn, recently distributed a survey on the topic of branding to airline executives all over the globe. The survey was distributed online and attracted participation by over 140 airline managers.

July 25, 2007

Choice Privileges Visa Card from Choice Hotels Offers the Largest Payback Among Leading Budget Hotel Companies
TripRewards MasterCard offers a good alternative with more hotel locations and no advance reservation restriction for hotel reward nights.

July 25, 2007

AirTran A+ Rewards Members Earn Free Tickets More Quickly than Members of the Midwest Miles Frequent Flier Program
But Midwest Miles elite members enjoy greater benefits than elite flyers at AirTran.

April 4, 2007

Frequent Fliers Rank New York - Los Angeles as the Top Market for Reward Travel in the United States
IdeaWorks releases report listing the top 15 market choices for standard frequent flier rewards on the mainland routes of U.S. airlines.

February 28, 2007

Stormy Weather: Frequent Flier Executives Are Concerned About Reward Availability and Other Consumer Issues
In a recent survey of frequent flier program management, 66% recognize seat availability is “too limited” at the lowest reward level.

December 13, 2006

Viva Las Vegas and the King of Ancillary Revenues
Allegiant Air’s recent stock prospectus reveals it is changing the business model for US low cost carriers.

October 10, 2006

Europe’s Top 4 Low Cost Carriers Generated 470 Million Euros (US$593 Million) From Non-Ticket Sources in 2005
But U.S. frequent flier programs produced revenues estimated at 2.5 billion Euros
(more than US$3 billion) and better per passenger results.

July 20, 2006

Low Cost Airlines Launch a New Batch of Frequent Flier Programs All Over the Globe
Free travel benefits are now offered by eight new entrant airlines: Eos Airlines, Germanwings, go!, Kingfisher Airlines, MAXjet Airways, Spirit Airlines, Virgin Blue Airlines, and Virgin Express.

May 22, 2006

Frequent Fliers Reach New Heights with More Than 15 Million Reward Trips
During 2005

Balance sheet liability for unused miles also increases for the top frequent flier programs to a record $3.8 billion.

May 11, 2006

Frequent Flier Miles Gain Value But Redemption Remains a Consumer Complaint
Mileage Value Index for jumps in 2005, reward issues continue to plague consumers and United Airlines offers an alternative to credit card miles.

January 19, 2006

The IdeaWorks Report on Innovative Reward Alternatives for the World’s Largest Airlines
Airlines in Asia, Europe and the United States offer hotel stays, car rentals, vacation packages and merchandise as alternatives to air travel rewards.

October 24, 2005

The IdeaWorks Report on Partnerships for the Top 15 U.S. Frequent Guest Programs
Marriott Rewards and InterContinental’s Priority Club compare favorably to major frequent flier programs such as United Mileage Plus and Delta SkyMiles for total partner opportunities.

August 22, 2005

The IdeaWorks Report on Frequent Flier Partnerships for the World’s Top 20 Low Fare Carriers
This report describes activities in the following partner categories: airline alliances, hotels, rent-a-car, personal finance, communications, retailers and credit cards.

May 18, 2005

United Airlines Shutdown Would Impact 45 Million Mileage Plus Members and 145 Partner Brands - Industry Analysis from IdeaWorks
Potential strike by employee groups would affect United’s frequent flier program, which now generates 5% of annual operating revenues for the airline.

April 25, 2005

U.S. Airline Frequent Flier Reward Liability Grew More Than $378 Million in 2004 - Industry Analysis from IdeaWorks
Comparison of U.S. based carriers reveals total liability now exceeds $3.8 billion, representing a 10.8% increase over 2003.

April 20, 2005

Frequent Fliers Had Their Wings Clipped During 2004 With 314,000 Fewer Reward Tickets - Industry Analysis from IdeaWorks
Analysis of top U.S. airlines reveals frequent flier reward travel dropped during a period of increased capacity and record breaking load factors.

April 5, 2005

European Travelers Get the Point: Low Cost Carriers Add Frequent Flier Benefits - Industry Analysis from IdeaWorks
Among Europe’s top 25 low cost carriers, Aer Lingus, Air Berlin, Air Europa, Condor, flybe, Hapag-Lloyd, LTU and Monarch offer frequent flier programs.

February 16, 2005

The Fall of Frequent Flier Mileage Values in the U.S. Market - Industry Analysis from IdeaWorks
Mileage buying power is weakest for the programs offered by American, Continental, Delta and United.

December 27, 2004

Troubled Airline Industry Returns to Innovative Marketing Programs during 2004
Airlines embrace innovation by adding programs to attract more customers, gain market share and boost revenues.

December 3, 2004

Powder and Points – Loyalty Programs Hit the Ski Hills Industry Analysis from IdeaWorks
The ski industry embraces airline-style frequent customer programs at 11 of the 20 largest U.S. ski areas.

September 21, 2004

Airline Bankruptcy: Its Impact on Frequent Fliers, Award Tickets and Mileage
The report reviews the filings of United Airlines and US Airways to illustrate how bankruptcy affects frequent flier program members.

September 8, 2004

Hotel Loyalty Programs and No-Annual-Fee Credit Cards
Co-branded card offers from major hotel chains offer points that can be exchanged for free room nights and even airline miles.

August 25, 2004

No-Annual Fee Credit Cards in the Airline Industry
Co-branded card offers from American, Delta and United are not easily found and are not promoted alongside their fee-based credit cards.

July 29, 2004

Hotel Loyalty Programs Deliver Awards With Fewer Strings Attached
Programs offered by the 15 largest U.S-based hotel chains compare quite favorably to the frequent flyer programs of major U.S. airlines. In fact, they are overall easier to use than airline reward programs.

May 26, 2004

Delta SkyMiles Judged Best Frequent Traveler Program For Shuttle Passengers in the Northeast Corridor
IdeaWorks compares the frequent traveler programs available to Delta Shuttle, US Airways Shuttle and Amtrak Acela passengers.

April 5, 2004

Frequent Flyer Award Liabilities Estimated to Exceed $3.2 Billion for U.S. Airlines
Comparison of U.S.-based carriers also reveals more than 21% of frequent flyer miles are not expected to be redeemed by travelers.

March 29, 2004

More Than 15 Million Travelers Enjoyed Award Travel on U.S. Airlines During 2003
Comparison of U.S.-based carriers also reveals nearly 8% of passengers on an average flight traveled using frequent flyer awards.

March 15, 2004

Growing Number of Low-Fare Airlines Offering Frequent Flyer Programs
Comparison of twelve U.S.-based low-cost carriers indicates the largest five provide frequent flyer programs to their passengers.


 

Home Home ascedia