Sep 17

September 18, 2018 – Report

2018 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany
IdeaWorksCompany researched financial filings made by 146 airlines all over the world, discovering 73 that disclosed qualifying revenue activity. Airlines joining the list for 2018 include Air China, Air India Express, Copa, Go Air, Jin Air, Pobeda, Scoot, Thomas Cook Airline, VivaAeroBus, Volotea, and WOW air. Now available free online, the 128-page, 2018 Yearbook provides a detailed global review of a proven revenue source that delivers a mammoth $5.7+ billion for United Airlines, 46.6% of sales for Spirit, and $48.87 per passenger carried by WOW air. This is an updated version to reflect a correction to VivaAerobus and Volaris data on pages 81 and 82.

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.

Jul 27

July 27, 2018

Airline revenues from theatre and car hire lift off
The Financial Times
Ancillary revenues have soared in the decade to 2017. The top 10 global airlines, ranked by total ancillary revenue, increased them from $2.1bn to $29.7bn in the 10 years to 2017, according to IdeaWorksCompany (IWC) and CarTrawler.  United Airlines led with $5.8bn, three-fifths of which came from what IWC calls “à la carte” sources, such as charges for extra bags, and travel retail commissions. The rest was frequent flyer programmes.

Jul 16

July 17, 2018 – Press Release

Top Ten Airlines Generated $29.7 Billion from Ancillary Revenue in 2017
CarTrawler-sponsored analysis shows ancillary revenue has gone beyond tilting the bottom line toward profitability and is now a core component of revenue for fiscally healthy airlines.  Every year IdeaWorksCompany searches for disclosures of financial results which qualify as ancillary revenue for airlines all over the globe. Annual reports, investor presentations, financial press releases, and quotes attributed to senior executives all qualify as sources in the data collection process.  These results are contained in the new report, 2017 Top 10 Airline Ancillary Revenue Rankings.

Jul 16

July 17, 2018 – Report

2017 Top 10 Airline Ancillary Revenue Rankings
CarTrawler-sponsored analysis shows ancillary revenue has gone beyond tilting the bottom line toward profitability and is now a core component of revenue for fiscally healthy airlines.  Every year IdeaWorksCompany searches for disclosures of financial results which qualify as ancillary revenue for airlines all over the globe. Annual reports, investor presentations, financial press releases, and quotes attributed to senior executives all qualify as sources in the data collection process.

May 16

May 16, 2018

Top Frequent-Flier Programs for 2018
Wall Street Journal
The annual IdeaWorks survey of award availability shows that while overall ability to find flights at basic “saver” levels was about the same as last year at 25 airlines, American Airlines significantly relaxed its grip on award seats, especially to Hawaii and Europe. American had availability on 80% of the possible trips IdeaWorks checked, up from about 50% last year.  That moved American from the lowest award-seat availability among U.S. airlines to No. 3 behind Southwest and JetBlue . United made changes, too, and its availability was up more than 10 percentage points to 76% overall.

May 16

May 16, 2018

It’s Getting Easier to Redeem Frequent Flyer Miles: New Study
Skift
It can be challenging to compare the world’s frequent flyer programs because all have their own rules, and each prices awards differently. Nonetheless, analyst Jay Sorensen of IdeaWorksCompany tries each spring to answer a simple question: “How easy is redemption for the basic and most popular reward type offered by the world’s top airlines?”

May 16

May 16, 2018

Airlines making more seats available to frequent flyer programs as competition rises
Chicago Tribune
“There is a recognition among the big airlines in the U.S. that there’s got to be a minimum amount of reward seats available, and you’re seeing them all kind of drift towards a band close to each other in the charts,” said Jay Sorensen, president of IdeaWorks, an airline consulting firm near Milwaukee, which conducts the annual survey

May 15

May 16, 2018 – Press Release

American and Turkish Airlines Show Dramatic Increase in Reward Seat Availability with Southwest Staying on Top
The 9th annual Reward Seat Availability Survey ─ sponsored by CarTrawler ─ also finds survey newcomers Norwegian and China Eastern ranked in the top 8 among 25 airlines.  The CarTrawler Reward Seat Availability Survey answers the question, “How easy is redemption for the basic and most popular reward type offered by the world’s top airlines?” The 25 carriers in the survey remained almost the same as 2017, with China Eastern, Norwegian, and WestJet as newcomers for 2018.
Click here for 2018 Worldwide Reward Survey FAQs.
Click here for infographic summary (JPG file) of key findings.

Apr 27

April 27, 2018

Why Airline Credit Cards Have an Enduring Appeal
New York Times
Mr. Sorensen, who runs the IdeaWorksCompany airline revenue consultancy, ran hundreds of simulations to come up with the following data for an award seat availability study he does with the rental site CarTrawler: The average value per mile redeemed for economy class travel ranges from 0.7 cents to 1.4 cents, depending on the airline. For long-distance business class seats, it ranges from 1.5 cents to 2.4 cents. So a 2 percent cash-back card would more often be a better value.