Air Transport World
The Ancillary Revenue Jungle
Ancillary fees and a la carte options are now an important part of many airline revenue streams. They have prompted criticism from the public and lawmakers, but these fees are not unique to the industry. Companies such as Disney Parks & Resorts, hotels and cruise ships, charge ancillary fees – and have been doing for years. “Good ideas are embraced within an industry; great ideas are adopted by those outside the industry” IdeaWorksCompany President Jay Sorensen said.
Relishing the Good Life, One Mile at a Time
Airlines are expanding non-air loyalty rewards catalogues to keep savvy premium customers satisfied. Magazine information: Article copyright 2012, APEX. All rights reserved. APEX Editor’s Blog at blog.apex.aero. You can read the APEX magazines online at blog.apex.aero/emagazines/
Airlines to earn an estimated $36BILLION this year through charges for early boarding, selecting seats and other ‘extras’
Airlines are set to earn around $36.1billion this year through extra fees imposed on passengers for boarding the plane early, buying extra leg room and checking in additional baggage.
Cleaveland Plain Dealer
Airlines worldwide raked in more than $22.6 billion in fees last year; why you’re likely to see more fees
More and more airlines see the dollars they rake in from selling frequent-flier miles, charging a la carte fees and earning commissions from co-branded travel products as a way to stay profitable despite rising costs, according to IdeaWorks Co., a Wisconsin consultancy that tracks such fees.
More fees coming from airlines
Passengers might not like the idea of paying $25 to $30 to check a first bag, but they’re going along with it, one reason 50 airlines worldwide reported ancillary revenue of $22.6 billion in 2011, up from $13.5 billion in just two years, according to a new report by Wisconsin-based IdeaWorks and its technology partner, Amadeus.
Everything carries a price in this business climate
Efforts by airlines around the world to increase revenue apart from ticket prices have grown almost tenfold since 2008 to $22.6 billion, according to a new study by IdeaWorks Co., a Wisconsin-based industry consultant.
Los Angeles Times
Southwest makes top 10 list for collecting most extra revenue
Southwest recently moved up into a list of the top 10 airlines around the world that generate the most revenue from extra passenger charges, according to a study by Wisconsin-based IdeaWorks, an airline consulting firm.
Your Checked Luggage Is Saving the Airline Industry
Over the years, the airline industry has been plagued by financial troubles. Most of the major U.S. carriers have had to declare bankruptcy at least once during their histories, and costs like high fuel prices present a constant challenge.
Airline Passenger Experience
Going the Extra Mile
Consultancy IdeaWorks estimates that United Airlines recorded USD three billion in revenue from its frequent-flyer programme during 2010, while Delta Air Lines enjoyed USD 1.6 billion in revenue derived from its SkyMiles loyalty programme. Magazine Information: Article copyright 2012, APEX. All rights reserved. APEX Editor’s Blog at blog.apex.aero. You can read the APEX magazines online at blog.apex.aero/emagazines/
Frequent flyer seats — still a mixed bag
“Shower them with miles; starve them for seats.” Although I first ascribed that mantra to the big airlines last year, it has actually improved a bit — at least for some airlines, in some cases. IdeaWorks recently released its third annual report on the availability of frequent-flyer seats, and a few lines made some marked improvements over last year.