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.
Airlines only beginning to tap into mobile growth potential
Few airlines are making the most of the bookings and ancillary potential of mobile platforms according to a report. Initiatives by those airlines at the lead show that mobile-first strategies can work exceptionally well. The IdeaWorks and CarTrawler report points to the rising trend of consumers preferring mobile interactions, with 3.5% more mobile phone accounts than there are people in the world.
LCC a la Carte Goes Mobile: A Review of the Top 15 Low Cost Carriers
The latest report from IdeaWorksCompany reviews the mobile applications offered by the world’s largest LCCs as measured by passengers flown. Theoretically, the mobile applications evaluated should represent state-of-the-art examples of ancillary revenue excellence. After all, the LCC category should naturally excel in the art of ancillary revenue. This report is part of the CarTrawler Airline Intelligence Series for 2018.
Key Mobile App Features for Top 15 Low Cost Carriers: Assigned Seating, Trip Protection, and Pre-Pay Baggage
IdeaWorksCompany finds Norwegian, Pegasus, Ryanair, and Wizz Air provide great mobile retailing examples. The latest report from IdeaWorksCompany reviews the mobile applications offered by the world’s largest LCCs as measured by passengers flown. After all, the LCC category should naturally excel in the art of ancillary revenue.
By The Numbers: Airlines Get Charged Up
As seats get narrower, airlines are getting fatter off bag fees, meals and other extras. Airlines globally were projected to pull in a record $82 billion in ancillary revenue last year, up nearly fourfold from 2010. Passengers grumble, but such additional revenue is a boost to carrier profitability–and in turn gets invested in new planes, in-flight entertainment and airport waiting areas.
European Airlines Lead 2017 a la Carte Revenue Estimate at $19.4 Billion with Asian Carriers 2nd at $15.8 Billion
The CarTrawler Global Statistics of a la Carte Revenue provides regional details, comparisons to 2010 revenue numbers, and a first-ever baggage revenue estimate. A la carte activity is a significant component of ancillary revenue and consists of the amenities consumers can add to their air travel experience. These include fees paid for checked baggage, assigned seats, buy-on-board meals, early boarding, and onboard entertainment. Of these, the revenue from checked baggage looms large with $23.6 billion in estimated sales for 2017.
Airline Baggage Fees Go International
Over the past decade, ancillary revenue at the 10 airlines that collect the most in fees jumped from $2.1 billion to more than $28 billion by 2016, according to IdeaWorks Co. The top three U.S. carriers accounted for $16.3 billion of that amount. Bag fees “have proven to be big revenue generators, and they too will become status quo in the trans-Atlantic by end of 2019, and globally thereafter,” Jay Sorensen, president of IdeaWorks . . .
Allegiant Air Is 2017 Champ for Revenue Innovation Leadership
IdeaWorksCompany continues an annual tradition by identifying the airlines that have shown the greatest prowess in ancillary revenue, a la carte pricing, and loyalty marketing. This year, Las Vegas-based Allegiant Air takes the top spot. Throughout 2017, we assessed the top ancillary revenue producing airlines and the most generous frequent flyer programs; our reports described the industry’s service and product innovations; and we offered practical advice for airline executives. Along the way, a select group of airlines clearly stood apart in their quest for new sources of revenue success. These Top 5 Revenue Innovation Champs for 2017 represent the creativity of the front line employees and management teams who delivered exceptional results during the year
What Does Your Airfare Actually Buy?
New York Times
Revenue from fees and other payments is “growing every year because it works,” said Jay Sorensen, the president of IdeaWorksCompany, a consulting firm that focuses on the airline industry. According to a report his company released this fall, the airlines made more than $82 billion in ancillary revenue — fees from passengers and other payments from partners like credit card companies and hotels — in 2017. That is about $46 billion more than five years ago. The report, sponsored by CarTrawler, a company that provides car rental recommendations on many airlines’ websites, used data released by 66 airlines last year to extrapolate the likely ancillary revenue of 184 carriers worldwide.
Air Canada’s ‘ancillary’ fees for customers add up to big bucks
CBC News – Canada
Global airlines are expected to earn a record $82 billion US this year by charging customers extra for everything from seat assignment to baggage fees to travel commissions. And Air Canada is among the top ten airlines in the world when it comes to earning this so-called ancillary revenue, racking up nearly $1.18 billion US last year, according to reports from IdeaWorksCompany, a U.S. research company that tracks airline revenue.