November 13, 2009

Sydney Morning Herald
Soaring costs a sore point
Don't put your wallet away after you've booked that airline ticket – you've only just begun. New research shows airlines are having a field day with "ancillary revenue", or income derived from extra charges such as meals, baggage fees, inflight entertainment and seat reservations. Ancillary revenue has increased by more than 300 per cent in the past two years, according to research undertaken by a US consultancy group, IdeaWorks.

November 11, 2009

Travel Weekly
New United unit focuses on ancillary revenue
Jay Sorensen, president of the IdeaWorks consultancy, which publishes the "Ancillary Revenue and A La Carte Guide," likes the idea of a new unit and its "merchandising" moniker.

November 10, 2009

Charlotte Observer
US Airways changing rules for frequent-flier benefits
Jay Sorensen, president of Wisconsin-based IdeaWorks, an airline consulting firm, said the industry has been slowly moving away from its "original sin" of pegging miles required for an award to the distance flown, as opposed to aligning it with the cost of the ticket.

October 31, 2009

Los Angeles Times
Airlines' extra fees may soon be taking off
"I think we are going to see more of this spread throughout the United States," said Jay Sorensen, president of IdeaWorks, a consultant on airline ancillary fees and loyalty programs. "The revenue is just too compelling."

October 19, 2009

Travel Weekly
Analysts say United’s checked-bag program could set trend
"This is the next big thing, annual subscriptions," said Jay Sorensen, president of the consultancy IdeaWorks and author of the company’s Ancillary Revenue and a la Carte Guide, published earlier this year

October 1, 2009

Low Cost and Regional Airlines
Secrets of Pick-and-Mix
Charging passengers only for the add-ons they want brings benefits to the bottom line without alienating your customer base. We exclusively preview a new report that uncovers the latest airline strategies.

October 1, 2009

Business Week
For Airlines, Fees Become Lifelines
"If it weren't for ancillary revenue, we probably would have seen at least one of the major airlines fail, given the recession," says IdeaWorks President Jay Sorensen.

September 25, 2009

Straits Times - Singapore
Frills Bring in Big Bucks for Airlines
IdeaWorks, a United States-based research company which tracks airlines' ancillary revenues, released its 2008 findings recently. It had surveyed more than 90 carriers including Emirates, Qantas, Delta, AirAsia and Ryanair, and extrapolated the industry's figures from there.

September 24, 2009

Telegraph - UK
Ryanair a winner on charging passengers for food and drink
According to the American research group IdeaWorks, Ryanair took almost £550 million (A$1.03 billion) in ancillary revenue last year – this includes spending on in-flight food, baggage charges and check-in fees, and the commission it receives from hotel bookings, car rental and insurance.

September 12, 2009

Independent - Ireland
Airlines bag €7.7bn as 'extras' drive revenues during slump
The world's airlines generated nearly €7.7bn in ancillary revenue last year, by charging passengers for everything from coffee to baggage.

September 11, 2009

Guardian - UK
Ryanair reaps more than £500m from extra charges
It is the fourth most profitable airline in the world when it comes to the money it makes from "ancilliary revenue" and the most profitable in Europe, a report by the research group IdeaWorks said.

September 8, 2009

Peter Greenberg
Extra Fees Provide Big Boost to Some Airlines’ Profits
We’re all aware that those annoying little fees charged by airlines to check your bags or book tickets online have been on the rise over the last year and a half or so. But few of us realize that these fees have added up to a whopping revenue boost for airlines — to the tune of $10.25 billion worldwide in 2008.

September 8, 2009

Business Week
Airline Fees are Big Money; a Whopping 345% Jump
Everyone knows the growth of airlines’ ancillary revenues has been extraordinary, but now there’s a worldwide figure on just how extraordinary: $10.25 billion in 2008. That tally represents a stunning 345% increase since 2006, and is likely to creep higher this year as airlines find traction with the new fees.

September 1, 2009

Aircraft Interiors
carte blanche?
Airlines are quickly catching on to the ancillary revenue streams to be made from à la carte fees for everything from checked baggage, food and IFE, but where should carriers seek to draw the line?

July 26, 2009

Financial Times
Flying far and wide on the back of airline loyalty
"Frequent flyer programmes no longer serve to drive brand loyalty alone, but rather to deliver extra cash, mostly through the sale of miles to card-issuing banks,” says Jay Sorensen, a former Midwest Airlines executive and now president of IdeaWorks, a consulting firm.

June 21, 2009

Associated Press
Airlines add fees, and some fees on top of fee
As if charging $15 to check a bag weren't enough, two airlines are asking for $5 more beginning this summer if you pay at the check-in counter — a fee on top of a fee.

03 April 2009

El Economista
Un estudio destaca que el programa de fidelización de iberia es el mejor entre las principales aerolíneas del mundo

April 1, 2009

Southwest Airlines - Rapid News
Rapid Rewards is truly rewarding!
In a recent study by IdeaWorks, Rapid Rewards was noted for having the most Award seats available of any major carrier.

March 29, 2009

Economist
Why Iberia's Reward Program Deserves Attention
IdeaWorks studied ten airlines — Iberia, Lufthansa, British Airways, American Airlines, Air France KLM, Delta Northwest, Continental, United, Scandinavian Airlines and US Airways — firing 6,400 booking queries at their websites.

January 1, 2009

Airline Business
Copy Cats
Taking a cue from their no-frills counterparts, US network carriers have been beefing up their ancillary revenue strategies. Will this approach be copied by other airlines?

December 1, 2008

Low Cost & Regional Airline Business
Pushing the Envelope
Passengers have now reluctantly accepted they must pay for things that were once included in the airfare.

October 28, 2008

MSNBC
À la carte airfare: More fees in your future?
“Look for more preferred handling services — early boarding, upgraded coach experiences, more food choices,” says Sorensen.

July 30, 2008

Brandweek
Fees Find Their Way to Frequent Flier Programs
Carriers are in a "lifeboat moment" throwing everything overboard to keep from sinking into extinction, said Jay Sorensen, and airline industry consultant and president of IdeaWorks, Milwaukee.

July 20, 2008

The Seattle Times
Airlines hope credit cards will help bail them out of financial crisis
For a clue, consider what Ryanair, the big European discount airline, sells besides airline tickets -- life insurance, vacation rentals and scratch cards for gambling. ''It's like the Grand Bazaar,'' says Jay Sorenson, president of Milwaukee-based IdeaWorks, an airline-industry consultant. ``They sell everything but the kitchen sink."

July 18, 2008

Minnesota Public Radio - In The Loop
Get ready to pay for those peanuts
Jay Sorensen is a guest on Minnesota Public Radio and discusses the a la carte fees charged by airlines. Fast forward to 7:50 (7 minutes, 50 seconds into the program) to reach the beginning of the segment.

July 14, 2008

Milwaukee Journal Sentinel
Hoarding miles may not pay off
Frequent flier perks can lose value, given state of airline industry
Sorensen says he's never heard of an acquiring airline refusing to honor the frequent flier miles accumulated by passengers at the airline being sold.

June 10, 2008

USA Today
Is it getting even harder to find a free ticket?
"I think a pullback of capacity will reduce the number of seats allotted for reward travel," says Jay Sorensen, president of IdeaWorks, a Wisconsin consulting company that regularly conducts airline and travel industry marketing studies.

April 2008

Air Transport World
Revenue Window of Opportunity
One of the major airline trade magazine reports on the IdeaWorks Guide to Ancillary Revenue.

February 24, 2008

The New York Times
The Skies Are Alive With Fees
Ancillary revenues are “the magic bullet right now for the airline industry,” said Jay Sorensen, president of IdeaWorks, a brand-marketing company. “The airlines may be thinking mergers are their salvation, but the reality is ancillary revenues are going to be a tremendous source of revenue.”

February 2008

Low Cost & Regional Airline Business
Pot of Gold
Ancillary revenue is becoming ever more important to airlines. Ian Harbison talks to Jay Sorensen of the IdeaWorks Company about a major report compiled by his company on the current winners and future trends.

November 15, 2007

International Herald Tribune
Airlines, down in the dumps, consider unusual spinoff
What if airlines like United and American owned assets that were worth at least as much as the carriers themselves, but few people even realized they had a separate value? That is the case of frequent-flier programs, which are not reflected in airlines' share prices, leading some shareholders to clamor for the programs to be sold.

November 12, 2007

The Street
Airlines Mull Frequent-Flier Spinoffs
"To a certain extent, these programs print money," says Jay Sorensen, president of the airline marketing consultant IdeaWorks. They sell miles that cost little to produce but have vast appeal.

November 5, 2007

Bloomberg
U.S. Airline September Delays Fell on Better Weather
``There are obviously too many flights that have been scheduled into these airports,'' said Jay Sorensen, president of IdeaWorks consulting firm in Shorewood, Wisconsin. ``Who wants to be the first one to bow out? New York is a hot market.''

October 17, 2007

Wall Street Journal
Mileage Plans Add to Flier Ire
Airlines are selling so many miles -- particularly through credit-card partners -- that industry observers wonder if they are giving out too many. "What's going to happen is people are going to be disenfranchised. They'll stop playing the game," says Jay Sorensen, president of IdeaWorks Co., an airline-marketing consulting firm in Shorewood, Wis.

September 28, 2007

Wall Street Journal
Airlines Mull Spinning Off Mileage Plans
The latest head scratcher for airline executives: Is it possible to peel off one of your more profitable components -- your frequent-flier program -- without irreparably damaging your core business?

September 7, 2007

In Business Las Vegas
Airlines set course for more nickel-and-diming
A new report by Wisconsin-based IdeaWorks, a brand development company that helps companies build market share through research, indicates it's likely that more airlines will charge fees for certain services in a bid to build ancillary revenue as a hedge against rising fuel costs and falling air fares.

September 1, 2007

Onboard Services Magazine - Worldwide
Ancillary Revenue Airline Conference 2007 Preview
Jay Sorensen, President of IdeaWorks, a leading consultancy on ancillary revenues, will serve as the Chairman for the Ancillary Revenue Airline Conference 2007 (ARAC).

August 29, 2007

Aviation Week
Airlines See Potential Revenues In IFE Services
Carriers appear poised to seize on ancillary revenues from onboard entertainment including videos, movies and live television, according to a recent survey of airline executives, as product unbundling broadens its reach in airline operations.

July 20, 2007

Forbes.com
Most Rewarding Frequent Flier Programs
Only 7% of airline seats per year are designated as reward ticket seats, according to IdeaWorks, a Wisconsin-based consulting firm that specializes in brand development. And ever financially vulnerable airlines are becoming more reluctant to give up seats for rewards tickets that can otherwise be filled by a customer willing to purchase the ticket.

May 14, 2007

CreditCards.com
IdeaWorks Takes a Look at Airline Miles
Is your airline credit card providing all the frequent flier miles it could?

March 13, 2007

eFlyer - Global Traveler's Weekly eNewsletter
Frequent-Flyer Programs: What Really Matters?
A survey of more than 100 registrants for the third annual FFP Conference showed that while they are all too aware of consumer resentment, other issues may be driving the train. Essentially, the programs aren’t about loyalty any more.

March 6, 2007

The Wall Street Journal
What frequent-flier miles really get you
Are some airlines more miserly than others when making discounted frequent-flier award seats available? It would appear so.

February 25, 2007

Denver Post
Frequent fliers air grievances on "saver" limits
Airline frequent fliers are most frustrated by limits on getting reward flights at low "saver" levels.

December 16, 2006

The Wall Street Journal - Saturday Journal
Is Airline Consolidation About to Get Under Way?
Merger talks between United Airlines and Continental Airlines last week fueled speculation that airline-industry consolidation may be on the horizon.

November 16, 2006

Wall Street Journal
Do fliers gain when airlines consolidate?
US Airways' Delta bid may mean less competition in key markets; frequent-flier impact uncertain

November 7, 2006

Peanuts - The Low Cost Airline Weekly
LCC ancillary revenues versus frequent flyer programmes (Part 2)
This is part two of the IdeaWorks report on ancillary revenues.

November 1, 2006

Air Scoop - The Low Cost Carriers Analysis Newsletter
Europe’s Top 4 Low Cost Carriers Generated €470 Million From Ancillary Revenue Sources in 2005
This is an excerpt from the newsletter and represents a regular feature by IdeaWorks.

October 31, 2006

Peanuts - The Low Cost Airline Weekly
LCC ancillary revenues versus frequent flyer programmes (Part 1)
This is part one of the IdeaWorks report on ancillary revenues.

October 22, 2006

The New York Times
Airline Programs: How Your Frequent Flier Miles Can Disappear
WITH airline partner programs that let travelers earn miles for everything from dining out to ordering contact lenses, there is no shortage of ways to rack up frequent flier miles these days. But redeeming them for a free ticket — as many travelers have learned — is not as simple. in

October 16, 2006

AviTrader
Europe’s top 4 LCCs generated $600 million from non-ticket sources in 2005
An IdeaWorks report unveiled that revenues from non-ticket sources, which are called ancillary revenues, have become an important financial component for low cost carriers (LCCs) in Europe and throughout the world.

October 16, 2006

Air Transport World Daily News
Legacy carriers lead LCCs in generating ancillary revenues
Although Ryanair and other low-cost carriers generate large amounts of revenue from "nonticket sources," legacy airlines derive significantly more by selling frequent-flier miles to partners, typically via co-branded credit cards, says a recent study by IdeaWorks Co.

October 2, 2006

Brandweek
Strategy: Airlines Seek New Ways To Reward Frequent Flyers
With 1.2 trillion airline miles chasing too few seats on U.S. carriers, the shortcomings of frequent flyer programs are becoming increasingly obvious on the redemption side.

September 25, 2006

Business Travel News
Card Use Energizes Reward Accrual
Travelers last year redeemed more than 15 million tickets through airline frequent flyer programs, likely the largest redemption level in the 25-year history of such programs and a 6.5 percent increase over 2004, according to an analysis of the top nine U.S. airline reward programs by marketing consultancy IdeaWorks.

September 25, 2006

Business Travel News
Low-Cost Carriers Bolster Rewards Programs
Several low-cost carriers in the past year have launched loyalty programs as a way to make their products more palatable to business travelers, according to analysis by IdeaWorks, a branding and marketing consulting firm.

August 10, 2006

Americas Duty Free & Travel Retailing
Duty-Free incentives: deferred reward?
A new airline industry study says that low-cost carriers (LCCs) are shedding their “no-frills” image by adding new services and amenities to their frequent-flier programs as they compete for passengers. Titled “Low Cost Airlines Launch a New Batch of Frequent Flier Programs All Over the Globe,” the study was conducted by U.S.-based IdeaWorks and examines new frequent flier programs rolled out by eight LCCs from around the world.

August 8, 2006

USA Today
Small airlines set up big rewards
As travelers continue to grumble about the limitations of established frequent-flier programs, eight small airlines over the past year have quietly begun programs that include some innovative wrinkles.

June 14, 2006

St. Petersburg Times
Airline rewards shrouded in mystery.
A travel industry consultant crunched the figures from the nine largest airlines. The IdeaWorks Co. reported that airlines awarded more free tickets last year than in 2004 - a record 15.6-million, up 6.5 percent.

June 4, 2006

Boston Globe
Frequent-flyer restrictions not sitting well.
Travelers find it hard to cash in miles for seats.

May 24, 2006

SmarterTravel.com
Airline frequent flyer programs by the numbers.
The IdeaWorks Company knows its way around corporate financial statements and periodically gives the airlines' 10-Ks the once-over, with a particular focus on the airlines' mileage programs.

May 22, 2006

Wall Street Journal
Plan ahead for rewards.
The Problem: Making the most of your frequent-flier miles. The Solution: Act early. Airlines generally schedule their flights 330 or more days in advance, meaning rewards seats are up for grabs almost a year before the departure date.

May 21, 2006

Boston Globe
How much are those miles?

March 4, 2006

FFP Online
The IdeaWorks Report on Reward Partnerships.
The Top 15 U.S. Frequent Guest Programs.

March 1, 2006

Airline Business
What is price loyalty?
Frequent-flyer programs range from simple air mile reward schemes to elaborate partnerships. Do they have a place in the business model of the low-cost carrier?

January 14, 2005

USA Today
Fliers wonder if there's no such thing as a free ride;
Cashing in miles for tickets is getting tougher.

December 20, 2005

The Economist
Funny money; Frequent-flyer miles.
Who will cheer loudest when frequent-flyer miles celebrate their 25th birthday?

December 9, 2005

Wall Street Journal
Now Hoarding.
Airlines are giving frequent fliers more ways to cash in miles for goods-- offering flat-screen TVs and hot tubs, even auctioning off cars. Our reporter asks: Are these smart buys?

December 6, 2005

Delta Offers Customers New Award Ticket Functionality at delta.com
According to The IdeaWorks Company,
"An independent airline consulting firm, Delta led the industry in Award Ticket redemption in 2004 with 2.9 million redeemed tickets . . . "

September 28, 2005

MSNBC
The economics of airline award travel.
Why there is too much mileage currency chasing too few seats?

September 27, 2005

MSNBC
Peanuts! The low cost airline weekly.
Frequent Flyer Partnership for the Worlds Top 20 LCCs.
IdeaWorks provided content for the monthly Perspective column of the weekly publication from the Centre for Asia Pacific Aviation. Peanuts! is the only global source for low cost airline news, strategic issues and vital analysis; it covers news from around 100 existing and start-up LCAs, share prices, traffic data, route changes & Internet usage data. Subscription information appears at the end of the newsletter.

September 16, 2005

ABC News
Good Question: Vanishing Miles.
With Airlines Finances So Precarious, What'll Become of the Airline Miles I've Earned?

September, 2005

Kiplinger's Personal Finance
What you need to know about Mileage Rewards.

May 30, 2005

FrequentFlier.com
Frequent Flyer Programs by the Numbers.
What the airlines' annual reports reveal about their loyalty programs. Analyzing airline financial reports is a dirty job. Luckily, Jay Sorensen of IdeaWorks saved us the eye (and brain) strain and undertook the accounting detective work himself.

May 25, 2005

New York Times
Frequent-Flier Threat.
With unions at United Airlines considering a strike over lost benefits, IdeaWorks, the research company, took a detailed look at how a work stoppage might affect United's huge frequent-flier program, Mileage Plus.

May 16, 2005

USA Today
Fliers quickly cash in US Airways rewards.
Industrywide, frequent fliers claimed 14.7 million free trips, down 2.1% from 2003, according to IdeaWorks. The Wisconsin-based consultant uses airlines' government filings to analyze reward travel. "People are reading in the media that (US Airways) is in danger of shutting down and are thinking, 'Gee, I'd better cash in my miles,' " says Jay Sorensen, IdeaWorks' president.

May 5, 2005

News & Observer
Miles multiplying.
Frequent fliers rack up rewards, but find them hard to use

May 2, 2005

The Charlotte Observer
Miles multiplying - Frequent fliers rack up rewards, but find them hard to use.
"In 2004, the airline industry operated at record activity with record numbers of passengers," said IdeaWorks president Jay Sorensen. "One would imagine frequent fliers would move up in a corresponding manner in reward activity but ... it dropped and liability increased."

March 13, 2005

The New York Times
Fliers Find That Mileage Points Go Only So Far
In 1994, airlines required only 20,000 miles for a free ticket. Coupled with higher airfares, that meant miles were worth about 2 cents apiece, according to IdeaWorks, a consulting firm in Shorewood, Wis. Today, with airfares way down but the mileage requirement way up, miles are worth about 1.4 cents apiece, IdeaWorks says.

February 27, 2005

Denver Post
Breaking the frequent-flier piggy bank.
The buying power of frequent-flier miles has fallen 33 percent since 1994, based on values for American, Continental, Delta and United, according to an analysis by Jay Sorensen, president of business consulting firm IdeaWorks.

February 25, 2005

Business Journal
Midwest, other airlines struggle to guess passenger demand for meals.
"Airlines used to tell Sky Chefs how many meals to produce. Now caterers are in the position of trying to guess," Sorensen said. If caterers prepare too few meals for a given flight, they run the risk of alienating customers. Conversely, preparing too many meals cuts into their profits, Sorensen said.

October 4, 2004

US Air Realigns Sales, Delta Pushes Pilots
Airlines entering the liquidation phase,
"In which operations cease and the assets are sold, are likely to demonstrate little concern for unused award tickets or unredeemed miles," according to a recent report issued by IdeaWorks, a brand development and marketing consultancy. "Unused mileage will likely be rendered worthless."

September 1, 2004

Frommers.com
Finally No-Annual-Fee Credit Cards. Will they matter?
An unbiased, non-commissioned report by IdeaWorks, a consulting company out of Shorewood, Wisconsin that researches consumer expectations and matches them with corporate development, recently released a study taking a close look at the no-fee airline credit card.

July 29, 2004

USA Today
Airfares down during last quarter in Milwaukee airport.
"Clearly, the discount airlines are here to stay, and the legacy carriers are falling all over themselves to adapt to this new world,"

June 2, 2004

USA Today
"Frequent Fliers Lose Out"
Snapshot in the Money Section features IdeaWorks data

May 3, 2004

USA Today
"Rewards for Flying"
Snapshot in the Money section features IdeaWorks data

April 21, 2004

Milwaukee Journal Sentinel
Air fares 'all over the map'
As low-cost carriers press major airlines, ticket prices vary widely

April 20, 2004

The Wall Street Journal
The Shifting Rules Of Flying Free.

April 13, 2004

The New York Times
Travel News - 5.2 Million Free Trips.

April 1, 2004

BestFares.com
IdeaWorks Compiles Facts on Frequent Flyer Award Travel.

April 6, 2004

Milwaukee Journal-Sentinel
Frequent-flier miles can't always be used, but programs are here to stay.

November 10, 2003

Poised for another takeoff
IdeaWorks captures lead article in the business section of
Milwaukee Journal Sentinel.