Jun 23

June 23, 2013

Travel Weekly
Margins have airlines selling more ancillaries through agents
Jay Sorensen, president of IdeaWorks, which tracks airline ancillary sales worldwide, said that airlines and GDSs are finally filling the “black hole of ancillaries.” IdeaWorks reported that ancillary revenue, which it defines as including not just a la carte options and bundled fare families but hotel and car rental bookings and income from co-branded credit cards, increased 19.6%, to $27.1 billion, in 2012.

Jun 05

June 5, 2013

CNN
Airlines collect $27 billion beyond ticket revenue
The airlines collected $27.1 billion in baggage fees; head-of-the-line boarding rights; hotel and car rental commissions; and other ancillary revenue programs in 2012, according to the IdeaWorksCompany’s CarTrawler Review of Ancillary Revenue Results for 2012, released Wednesday.

 

 

Jun 03

May 20, 2013

Brisbane Times
Welcome aboard, can I buy you a drink?
In fact, ancillary revenue is now so big, it has created an industry, led by marketing think tanks like America’s Ideaworks Company.  In 2007, according to Ideaworks, airlines worldwide were just starting out on the new craze and found a comparatively puny $US2.45 billion they could charge passengers extra for.

Jun 03

May 15, 2013

Thestar.com
Airlines Look for New Fees to Boost Revenues
“It was a tool used by low-cost airlines to say ‘Hey, we’re different from a global airline. We’re going to unbundle. You’ll pay for what you want and need,’ ” said Jay Sorensen, president of IdeaWorksCompany, an airline consulting firm in Wisconsin.

Jun 03

May 15, 2013

International Business Times
US Airlines Bag $3.5B In Luggage Fees As Revenue Model Shifts
“The ancillary revenue revolution is focusing less on product development and more on retail methods,” Jay Sorensen of IdeaWorksCompany explained in a recent study on ancillary revenue. “The big categories, such as checked bags, comfort- and convenience-adding features, and the sale of loyalty miles or points, are slowly being checked off the list by revenue-savvy carriers.

Jun 03

May 15, 2013

Aviation Week
Southwest v. Frontier v. Fees
“Unfortunately for Frontier, they have achieved in crafting the most complex offer out there,” Jay Sorensen, president of IdeaWorksCompany, a global, Wisconsin-based consulting firm on ancillary revenue, brand development and frequent flyer programs, told me. “When I read through this, I thought, ‘This is just too complicated.’

Jun 03

May 9, 2013

CNBC
Cashing in Frequent Flier Rewards Easiest on Value Airlines
If you’re looking for the airline where you’ll have the best chance of cashing in frequent flier miles or points for a seat on a future flight, you’re best odds are with value airlines. In fact, the fourth annual Switchfly Reward Seat Availability Survey found Southwest, its subsidiary Airtran and JetBlue among the top five airlines for customers trying to book tickets with frequent flier miles or points.

Jun 03

April 2013

Low Cost & Regional
Levelling the Field
Jay Sorensen, president of IdeaWorksCompany, believes that the changes made by Southwest will not alienate its customers, claiming: “[It] certainly has built a huge portion of its marketing message on the ‘no fees’ promise. But I think a change would create far more internal angst than it would for consumers. This company’s ethical emphasis and promise to consumers is a core employee belief. With bankruptcies, mergers, impending government shutdowns and recession, the American consumer seems prepared for anything.”