Jun 26

June 26, 2019

The Best Frequent-Flier Awards Programs of 2019
The Wall Street Journal
IdeaWorks president Jay Sorensen says award programs have needed to become more generous. Among the biggest factors: They’re feeling pressure from credit card companies that buy billions of dollars of miles from airlines each year as rewards on credit cards. If it’s too difficult to redeem the miles, consumers will switch to other cards with rewards they can actually use.
Click here to view the print version of the article.
Scott McCartney also created a video to accompany the article – click here to view.

Jun 26

June 26, 2019 – Press Release

British Airways Greatly Boosts Reward Seat Availability, and Entire Industry Shows Dramatic Improvement
The 10th annual Reward Seat Availability Survey finds Southwest, JetBlue, Etihad Airways and Turkish Airlines atop the rankings.  The IdeaWorksCompany Reward Seat Availability Survey answers the question, “How easy is redemption for the most popular basic reward type offered by the world’s top airlines?” This year’s survey assesses 20 top airlines, with Etihad, Qatar, and Singapore as newcomers for 2019.  The net result is better reward seat availability for 2019 compared to 2018.  Of the frequent flyer programs surveyed this year, 13 provided better overall reward availability for 2019, with only three programs showing decreased availability.

Click here for 2019 Worldwide Reward Survey FAQs.

Jun 01

June 1, 2019

Revenue Raisers
Low Fare & Regional Airlines Magazine
IdeaWorks has been tracking the growth of airline ancillary revenues – defined as revenue beyond the sale of tickets that is generated by direct sales to passengers or indirectly as a part of the travel  experience – since 2010. For 2018, in conjunction with technology platform CarTrawler, IdeaWorks estimated total airline ancillary revenue at $92.9 billion – a 312% increase on the 2010
figure of $22.6 billion and 10.7% of the industry’s global $871 billion revenue.

May 21

May 21, 2019 – Press Release

IKEA Teaches Everything You Need to Know About Airline Retail
IKEA is not an airline, but it is one of the world’s master retailers. The company’s relationship with customers doesn’t depend on pushing transactions. Instead the company seeks to offer “products at prices so low that as many people as possible will be able to afford them.” It has become a global success because it first seeks to meet customer needs. This distinctive style also defines retail-savvy ways to boost revenue for airlines, which are described in a 15-page report sponsored by CarTrawler.

May 21

May 21, 2019 – Report

IKEA Teaches Everything You Need to Know About Airline Retail
CarTrawler-sponsored report shows IKEA’s merchandising methods are also used by
AirAsia, Air New Zealand, Allegiant, easyJet, Ryanair, and Scoot.  IKEA is not an airline, but it is one of the world’s master retailers. The company’s relationship with customers doesn’t depend on pushing transactions. Instead the company seeks to offer “products at prices so low that as many people as possible will be able to afford them.” It has become a global success because it first seeks to meet customer needs.  IKEA Teaches Everything You Need to Know About Airline Retail was released today as a free 15-page report sponsored by CarTrawler.

Apr 30

April 30, 2019 – Press Release

Global Baggage Fee Revenue Jumps to $28.1 Billion
CarTrawler Global Estimate of Baggage Fee Revenue reveals 110% increase from 2014 estimate of $13.4 billion.  IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, the leading technology platform providing transport solutions for online businesses, recently estimated ancillary revenue at $92.9 billion worldwide for 2018. This CarTrawler Global Estimate of Baggage Fee Revenue identifies baggage as a $28.1 billion component and provides a worldwide summary of baggage fee policies for 20 top airlines.

Mar 19

March 19, 2019 – Press Release

Allegiant Airlines’ Ancillary Revenue Initiatives are Among the Most Effective and Innovative in the World
Allegiant is based in Las Vegas, but it has never relied upon the notion of “luck” as part of its business strategy. The airline was born in 1997 and immediately challenged all the rules of how to start an airline. Allegiant maintains its industry leading margins by distancing itself from competitors, and as you will read in this latest report, by being very different from everyone else. This distinctive style includes innovative ways to generate ancillary revenue

Mar 19

March 19, 2019 – Report

Allegiant Flies Its Own Route to Revenue Success
IdeaWorksCompany started tracking ancillary revenue in 2007 and Allegiant has reliably been among the best performers when measured as a percent of revenue or on a per-passenger basis. This success has been attained through a rigorous approach to a la carte sales and travel-related packaging.  This CarTrawler-sponsored report describes how Allegiant is mastering the art of a la carte and seeks to capture even more of a consumer’s leisure and entertainment spending

Feb 26

February 26, 2019 – Interview

Slate Money Travel on the history and business of airline miles
Slate Money
Airline-loyalty-program expert Jay Sorensen joins Episode 2 of this new miniseries from Slate Money all about travel. Felix and Jay talk about the history of airline miles and the fascinating relationship between traveler, bank, and airline.  Click here to listen to the 42-minute interview at Slate.com.

Feb 26

February 26, 2019

Airlines’ credit cards in ‘arms race’ to profits
Travel Weekly
Last November, IdeaWorksCompany estimated that U.S. airlines in 2018 would make approximately $15.6 billion in combined revenue from the sale of credit card points and from commissions from sales of partner products such as car rentals and travel insurance. Of that $15.6 billion, approximately $14 billion was expected to come from credit card points, Sorensen said.