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.
Mit „Happy Snacks“ gegen hohe Kerosinpreise “Happy Snacks fight high fuel prices”
The article is written in German.
Wall Street Journal
For Frequent Fliers, a Ranking of the Stingiest Airlines
Best among U.S. carriers: Southwest Airlines Co., which had award seats available for 99.3% of the queries made, and jetBlue Airways, which offered seats 79.3% of the time. Southwest and jetBlue both use points instead of miles, and IdeaWorks Co., the consulting firm that conducted the study, searched for award seats available at 25,000 points, the equivalent to standard awards at other airlines.
5 Fees Airlines Should Add Now
We compiled a list of five fees the airlines should add right now. We had help from Jay Sorensen, president of the airline marketing consultant for Shorewood, Wis.,-based IdeaWorks…
Wall Street Journal
Airlines to Load On More Fees
Jay Sorensen, president of Shorewood, Wis., airline consulting firm IdeaWorks Co., predicts that charging non-elite fliers for advanced seat assignments is inevitable.
Will your expense account cover airline fees?
“These fees are going to stay, and they will grow in importance for the airline industry, especially when we see fuel prices begin to creep up again,” says Jay Sorensen, a consultant who is an expert on ancillary fees. “Airlines are unable to push through fare increases that match cost increases when the price of fuel is jumping up.. .. la carte fees work very well to fill that gap.”
Atlanta Journal Constitution
Delta, other airlines push a la carte model
“A la carte pricing is here to stay because airlines have found that it’s easier to add a fee or to raise a fee than it is to raise a fare,” airline consultant Jay Sorensen said. Because consumers can compare fares in a single glance on a travel website, “it’s very difficult for an airline to go out of alignment to try to raise a fare.”