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”.

Jul 24

July 24, 2019 – Press Release

Top Ten Airlines Generated $35.2 Billion from Ancillary Revenue in 2018
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, 2018 Top 10 Airline Ancillary Revenue Rankings.

Jul 24

July 24, 2019 – Report

2018 Top 10 Airline Ancillary Revenue Rankings
CarTrawler-sponsored analysis shows ancillary revenue continues steady advance by every measure, and asks the question, can too much of a good thing be a bad thing?  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.  Of the nearly 150 airlines reviewed, 70+ reveal figures related to ancillary revenue.

Jul 01

July 1, 2019

Airline award seats cheaper, easier to find. Wait. What?
Houston Chronicle
The 2019 study of airline award travel by IdeaWorks Company found that not only has free seat availability improved this year compared with 2018 on most carriers, but that over the past five years – i.e., since dynamic award pricing started to kick in – the average mileage/point cost of an economy class reward ticket on major U.S. airlines has declined significantly.

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.