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 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.

Feb 26

February 26, 2019 – Interview

Slate Money Travel on the history and business of airline miles
Slate Money
Airline-loyalty-program expert Jay Sorensen joins Episode 2 of this new miniseries from Slate Money all about travel. Felix and Jay talk about the history of airline miles and the fascinating relationship between traveler, bank, and airline.  Click here to listen to the 42-minute interview at Slate.com.

Feb 26

February 26, 2019

Airlines’ credit cards in ‘arms race’ to profits
Travel Weekly
Last November, IdeaWorksCompany estimated that U.S. airlines in 2018 would make approximately $15.6 billion in combined revenue from the sale of credit card points and from commissions from sales of partner products such as car rentals and travel insurance. Of that $15.6 billion, approximately $14 billion was expected to come from credit card points, Sorensen said.

Feb 13

February 13, 2019

Southwest Airlines doesn’t assign seats and honestly, this sounds like a nightmare
News.com.au News Australia
A recent joint report from research firm IdeaWorks and Dublin travel tech company CarTrawler estimated airline ancillary revenue would reach $131 billion worldwide in 2018.  The report, released in November, estimated that would be about $30.05 in extra fees per passenger.  And it’s a 312 per cent increase on the 2010 figure.

Feb 13

February 13, 2019

Why the airline that inspired Ryanair still refuses to charge for luggage
The Telegraph – London
An annual study of “ancillary” revenue, which includes all income beyond the standard airfare, shows that the top 10 carriers worldwide raked in more than $29.7 billion (£23bn) in 2017, up from just $2.1bn (£1.6bn) in 2007.  The CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany analysed financial documents for 138 airlines. Unsurprisingly, Ryanair, and other low-cost carriers whose business models revolve around cheap fares and costly “optional” fees, feature prominently.

Jan 30

January 30, 2019

Southwest Airlines doesn’t assign seats and honestly, this sounds like a nightmare
Buying Business Travel
A recent joint report from research firm IdeaWorks and Dublin travel tech company CarTrawler estimated airline ancillary revenue would reach $131 billion worldwide in 2018.  The report, released in November, estimated that would be about $30.05 in extra fees per passenger.  And it’s a 312 per cent increase on the 2010 figure.

Dec 07

December 7, 2018

Ancillary Revenues Expected to Hit $92.9 Billion
Airlines – IATA
Airline ancillary revenue has been projected to reach $92.9 billion worldwide for 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.  Online car rental distribution systems provider CarTrawler, teams up with airline ancillary revenue consultancy IdeaWorksCompany, to project the industry estimate annually.  The CarTrawler Worldwide Estimate of Ancillary Revenue marks the ninth year IdeaWorksCompany has prepared a projection of ancillary revenue activity.

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.

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.