Nov 27

November 27, 2018 – Press Release

Airline Ancillary Revenue Projected to Be $92.9 Billion Worldwide in 2018
IdeaWorksCompany, the foremost consultancy on airline ancillary revenue, and CarTrawler, the leading provider of online car rental distribution systems, project airline ancillary revenue will reach $92.9 billion worldwide in 2018. The CarTrawler Worldwide Estimate of Ancillary Revenue represents a 312% increase from the 2010 figure of $22.6 billion, which was the first annual ancillary revenue estimate.  Earlier this year, CarTrawler and IdeaWorksCompany reported the ancillary revenue disclosed by 73 airlines for 2017. These statistics were applied to a larger list of 175 airlines to provide a truly global projection of ancillary revenue activity by the world’s airlines for 2018.
Click here for 2018 Worldwide Estimate Infographic (JPG file).

Nov 02

November 2, 2018

How Much Money Do Budget Airlines Make From Charging for Extras?
The Independent (UK)
Ryanair already makes a huge amount of its capital from ancillary revenue, even before the new hand luggage rules came into play. In H1, this revenue stream increased by 27 per cent to €1.3bn (£1.1bn), driving an eight per cent increase in total revenue to €4.8bn (£4.2bn). This number is likely to only go up.  It’s far from the only airline to make a consequential percentage of its profits through add-ons. EasyJet made $1.3bn (£1bn) in 2017 from ancillary revenue, 19.5 per cent of its total revenue, according to IdeaWorksCompany’s annual report, the Yearbook of Ancillary revenue. The airline was the 10th highest earner from this income source, revealed the report.

Oct 23

October 23, 2018 – Report

Airline Retail ’Round the World: A Global Tour of Ancillary Revenue Best Practices
CarTrawler-sponsored analysis reviews great examples from British Airways, Jetstar, Ryanair, SWISS, United, and Wizz Air.  The latest report by IdeaWorksCompany examines the changes occurring in merchandising, what lessons can be applied to the travel business, and how airlines are becoming better ancillary revenue retailers.

Oct 23

October 23, 2018 – Press Release

Airlines ’Round the World Embrace the Need for Change in the Ancillary Revenue Services They Create
The internet has furthered the evolution of retail by determining which companies perish, survive, or thrive. It’s a story that parallels much of what has happened in the airline business. The common theme is this: Companies that embrace change enjoy a better chance of success. Those clinging to the past risk others taking their place. The latest report by IdeaWorksCompany examines the changes occurring in merchandising, what lessons can be applied to the travel business, and how airlines are becoming better ancillary revenue retailers.

Oct 02

October 2, 2018 – Report

Leading Ancillary Revenue Airlines and the Women Who Boost Their Profits
CarTrawler-sponsored analysis presents the ancillary revenue philosophies of four women leaders and the compelling features of the a la carte initiatives they lead.  In the 21st century, airline revenue leadership relies on the perspectives of female executives responsible for ancillary revenue and a la carte strategies. They are key members of ancillary revenue teams composed of bright, innovative, and hard-working men and women. This report describes strategies contributed by each female leader — ideas that can be embraced by any airline wishing to give its ancillary revenue a boost.

Oct 02

October 2, 2018 – Press Release

Women Leaders Boost Ancillary Revenue Profits at Alaska Airlines, Finnair, Jetstar, and WOW air
Ancillary revenue has become a universal benefit for all successful airlines, from global network giants to low cost carriers, because it provides protection against the unpredictability of airline fares and the risk of rising fuel costs. The four ancillary revenue leaders presented in this report, along with the four airlines, demonstrate what occurs when people are selected and promoted on the basis of their ability, passion, and results

Sep 24

September 24, 2018

How Much Money Do Budget Airlines Make From Charging for Extras?
New York Times
Checked-bag fees are part of a constellation of extra charges airlines have implemented for preferred seats on planes, such as those in the front of economy, or ticket changes. IdeaWorksCompany, a consultancy that analyzes ancillary fees, projected airline fee revenue exceeded $82 billion worldwide last year.

Sep 24

September 24, 2018

Fares vs. fees: Here’s how much U.S. airlines make from checked bags, changed flights
Dallas Morning News
It’s been a decade since American Airlines became the first major carrier to charge for a first checked bag, a move that was quickly followed by its peers. Since then, airlines have reaped billions of dollars in fees and continued to find new things to charge for, from seat assignments to boarding position.

Sep 06

September 6, 2018

Now boarding: higher fees for air travelers
The Boston Globe
According to a study from the consulting firm IdeaWorksCompany, which focuses on the airline industry, ancillary income for the top 10 international carriers in 2007 was $2.1 billion. In 2017, that figure had risen to $29.7 billion.  The additional fees are even higher among low-cost carriers that entice customers with their impossible-to-resist low fares.