Airlines get creative with frequent flyer rewards
You know frequent flyer programs have changed when one of the rewards on offer is a class for people afraid of flying.
10 weird but wonderful frequent flyer rewards
Everybody knows that frequent flyer programs can land you better seats, free trips, and the ability to board the plane before the unwashed masses. But did you know that Air Baltic frequent flyer miles will pay for a dog-sled ride in Latvia? Or that Hawaiian Air will help you tee off at the championship Coral Creek golf course in Ewa Beach, Hawaii?
The New York Times
New Airline Revenue Goes Beyond Baggage Fees
Those fees for checked bags or in-flight meals? They are just the start. Now that airlines have realized how much money they can make by selling more than just a seat on their planes, they are coming up with all sorts of income-producing ideas — including selling flight interruption insurance and producing merchandise with their logos.
Travel Agent Central
Airline Ancillary Revenue Soars to $32.5 Billion
As every travel agent knows ancillary revenue has become a crucial component in the global airline industry’s profit toolbox, making Amadeus’ new estimates of ancillary revenue especially pertinent. Amadeus’ new analysis notes that the $32.5 billion contributed by ancillary revenue has lifted the airline industry from a loss-making position and continues to provide a very effective hedge against runaway costs, including fuel bills. The Amadeus Worldwide Estimate of Ancillary Revenue for 2011 is the second year Amadeus and partner IdeaWorks have undertaken the task of calculating global ancillary revenues.
Airlines in Middle East must focus on ancillary revenues
Middle East airlines will need to increase extra charges for food, second checked bags, choosing seats and WiFi on board to help boost profits at a time of spiralling oil prices and political unrest, a market expert said.
Flyselskaber spinder guld på gebyrer “Airlines spin fees into gold”
The article is written in Danish.
New York Times
Those Ancillary Fees Aren’t So Ancillary Now
. . . airline consultant IdeaWorks, found that global airline ancillary revenues totaled $21.5 billion last year, double what they were in 2008. The report said that as airlines devise new fees, “ancillary revenue has become an enduring part of airline income statements.”
Airlines Take In $22 Billion from Add-On Fees and Partnerships
Yes, airlines are hurting because of increasing fuel prices and issues involving sleeping air traffic controllers, but a study (PDF) by Wisconsin-based IdeaWorks reveals that they’re making up for it in other ways.
Dallas Business Journal
Airline fees top $21B last year
A report from IdeaWorks and Amadeus finds that ancillary revenue at 47 carriers — both international and domestic — increased to more than $21 billion in 2010, a boost of nearly 60 percent from 2009.
Airlines raking in billions from add-on charges
IdeaWorks Company Inc. a consulting company that specializes in improving ancillary revenue and brand development, compiles the annual analysis. It released its 2010 figures on Tuesday.