Oct 31

October 31, 2019

Overhead bins are a battleground. Here’s what airlines are doing to fix the problem they caused.
Washington Post
“We’ve been living with the legacy of that since then,” says Jay Sorensen, president of IdeaWorksCompany, which consults with airlines on fees.  Last year, according to an estimate from the consultancy, global airlines charged more than $28 billion in baggage fees. That includes checked luggage, charges for bags that are extra-heavy or oversize and some carry-on bags. That total is up from $13.4 billion in 2014.

Oct 28

October 28, 2019

Why Are Airline Websites So Bad at Inspiring Travel?
Skift
Airlines have a problem: They are pretty good at selling flights, but they fail again and again when it comes to inspiring travel, and selling related products, from hotels to vacation packages, and bottles of booze.  Enter Jay Sorensen, a former director of marketing at Midwest Airlines, a consultant, and the president of IdeaWorksCompany, which recently published Finding the Path to Fix Airline Retail.

Oct 15

October 15, 2019 – Report

Finding the Path to Fix Airline Retail
It’s hard to believe we are nearing the 24th anniversary of airline websites – Alaska Airlines sold the first air travel ticket online in December 1995. Fast forward to today, airline websites still promote two core functions: transactions and information retrieval. At present, airline websites are little more than cash registers surrounded by shelves of merchandise. This report encourages airlines to move from a transaction focus to become robust retailers of travel.

A podcast of this report has been recorded, and is available at Spotify and Google Podcasts.  Click this link to listen on Spotify.

Oct 15

October 15, 2019 – Press Release

Becoming the “Amazon of Travel” Should Not Be a Goal for Airlines
CarTrawler-sponsored analysis shows airlines how to stop treating air travel as a commodity and dominate the travel planning process.  It’s hard to believe we are nearing the 24th anniversary of airline websites – Alaska Airlines sold the first air travel ticket online in December 1995. Fast forward to today, airline websites still promote two core functions: transactions and information retrieval. At present, airline websites are little more than cash registers surrounded by shelves of merchandise. This report encourages airlines to move from a transaction focus to become robust retailers of travel.

Sep 29

September 29, 2019

Non-ticket revenues account for more than 10 per cent of airline earnings
Business Traveller
Airlines generated more than $55.7 billion in revenues last year selling everything but airline tickets, according to a report from B2B travel technology platform CarTrawler and ancillary revenue strategists IdeaWorksCompany.  The yearbook and ancillary revenue guide included data on non-ticketed income from 76 airlines and states that such revenues have “remade the business models of the global airline industry.”

Sep 19

September 19, 2019

Airlines Reached 52 Billion Francs Through Additional Sales
Travelnews – Switzerland (This article was published in German)
Das Geschäftsmodell der Airlines hat sich grundlegend verändert. Zu diesem Schluss kommt die Idea Works Company nach der Untersuchung der Zusatzumsätze von 154 Fluggesellschaften weltweit.  2008 veröffentlichte das Unternehmen Idea Works Company ihr erstes CarTrawler-Jahrbuch über die ausserhalb des reinen Beförderungspreises generierten Umsätze von Fluggesellschaften. Damals wurden 23 Airlines detailliert mit ihren Zahlen aufgelistet und die Buchbarkeit von zusätzlichen Leistungen wurde als «einen jungen und fragilen Trend» eingestuft. Nun ist die Ausgabe 2019 mit Ausweisung detaillierter Zusatzumsatzzahlen von 76 Fluggesellschaften erschienen und zeigt, dass sich das Geschäftsmodell der Flugbranche massiv verändert hat.

Sep 17

September 17, 2019 – Press Release

2019 CarTrawler Ancillary Revenue Yearbook Shows $55.7 Billion in Extra Revenue for 76 Airlines
With 76 airlines, the 2019 edition of the CarTrawler Ancillary Revenue Yearbook by IdeaWorksCompany has become a United Nations-like directory filled with airline listings from every continent with the exception of Antarctica. IdeaWorksCompany published the first ancillary revenue guide in 2008 and a grand total of 23 airlines were found to disclose ancillary revenue. The introduction to the report described ancillary revenue as “a relatively young and fragile trend.” Eleven years later, the 2019 edition declares that ancillary revenue has remade the business models of the global airline industry.
Click here for Top 25 Ancillary Revenue Airlines Graphic (JPG file)

Sep 17

September 17, 2019 – Yearbook

2019 CarTrawler Ancillary Revenue Yearbook
IdeaWorksCompany researched financial filings made by 154 airlines all over the world. It’s the biggest Yearbook ever with 140 pages and 76 airlines disclosing qualifying revenue activity. Now available free online, the 2019 Yearbook provides a detailed global review of a crucial revenue source that delivers a jumbo $7.2 billion for American Airlines, 29% of sales for AirAsia, and $18.47 per passenger carried by the Lufthansa Group. The $55.7 billion worldwide total represents 10.7% of all revenue for the 76 airlines in the survey.

If you prefer to read a printed version of the Yearbook, these can be ordered from Amazon.  The price you pay is the cost of printing, along with taxes and delivery.  The Yearbook is available at Amazon.com or you can search your local Amazon Marketplace using this ISBN:  1695413962.
Click here to view at Amazon.com

 

 

 

Aug 01

August 1, 2019

Airlines’ Drive To Grow Extra Fees And Services Is Paying Off Big — For Them
Forbes
Sixteen out of every $100 that American Airlines collected from its customers in 2018 came from the sale of something other than seats on a plane, according to a recent study from IdeaWorks. At United it was $14 out of every $100 in revenue. Delta got $12.50 out of every $100 it was paid for things other than a ticket.  Meanwhile maverick Southwest Airlines, the granddaddy of low cost/low fare carriers, outdid its conventional rivals by scoring $18 out of every $100 of revenue last year from the sale of services beyond a basic flight ticket.

Jul 29

July 29, 2019

FluggesellschaftenA verdienen Milliarden durch Zusatzeinnahmen
Airliners.de
Zusatzeinkünfte machen bei Fluggesellschaften einen immer wichtigeren Teil der Umsätze aus. Eine neue Studie zeigt, wie viel auch Netzwerk-Airlines mittlerweile durch die sogenannten Ancillaries verdienten.  Das geht aus einer aktuellen Studie des Technologiedienstleisters “CarTrawler” und der Beratungsgesellschaft “IdeaWorksCompany” hervor.
Translated from German:  Additional income makes up an increasingly important part of revenue for airlines. A new study shows how much network airlines have now earned through the so-called Ancillaries.  This emerges from a recent study by the technology service provider “CarTrawler” and the consulting company “IdeaWorksCompany”.