Listed below are the most recent posts to the website. Click on any item title or button to access our latest reports, press releases, and news items. Or use the menu to the right to browse news, reports, articles featuring IdeaWorksCompany research, and press releases.
CNBC
What’s next for airline fees? More ways to pay
Although the latest numbers may show a slight decline in how much passengers are paying airlines to check their bags, the long- term trend is clearly heading in the other direction. “They’re going to go up,” predicted Jay Sorensen, the president of IdeaWorks, a research firm that advises the industry. “The airlines are always testing higher rates to see if it will fly.”
Airline Retail
Simply Magnifique
Jay Sorensen, whose company IdeaWorksCompany offers airlines advice on ancillary revenue, recently studied a variety of retail opportunities at locations where the customer remains in one place and product is brought to the seat, not unlike the situation on airplanes. He reviewed sales in restaurants, on trains and at a sport arena. “In every case there were two things that were consistent,” he says of his findings. “First, they were very visible with the product. If the customer can’t see it, they’re not going to buy it. And second, a motivated sales person ends every sale with ‘What else can I get you?’ The person asks for the sale.”
New York Times
Flying Like a Rock Star, but It’s Not Cheap
Last week, IdeaWorksCompany issued a fascinating report, “V.I.P. for a Fee,” which describes the various V.I.P. services airlines offer at airports. The services often include airport curbside-to-plane personal escorts, priority check-in and even fripperies, such as being driven to the airplane by limousine. (By the way, that usually requires the fancy-pants passenger to climb steep stairs from the tarmac to the airplane.)
Fox News
Airlines offer increasing number of a la carte VIP perks, for a fee of course
A new report, VIP for a Fee: Airport Services Designed for High Value Customers, outlines how many international airlines now offer an a la carte menu of perks – everything from personal escorts at check-in and fast-track security screening to getting a luxury car ride right to the ramp of the aircraft – all for as little as $125. That’s almost the cost of your baggage check and a stale sandwich.
Telegraph
How to pass airport security like a VIP
Frequent fliers and regular first- and business-class customers enjoy a host of privileges that in many cases start before their flight and extend beyond arrival at their destination. Now an increasing number of airports and airlines are rolling out these benefits to travellers who may not wish to fly in first or business class but who are willing to pay a premium for some of the benefits passengers in those cabins enjoy.
CNBC
Consumers to get more competition after US Air, American deal
The Department of Justice said Tuesday that US Airways and American Airlines had agreed to give up dozens of gates in New York and Washington to make way for their merger, now valued at $17 billion. “I think the outcome of this is very positive for the consumer,” said Jay Sorensen, the president of IdeaWorks, an airline research firm. “It allows a fourth entity to have a strong position against Southwest, United and Delta,” which US Air and American don’t have if they don’t merge, he said.
Minyanille
With a Fee for Everything, Airlines Jet Toward a New Business Model
Last year, 53 of the world’s airlines reported a whopping $27.1 billion in ancillary revenues, according to a new report by the consulting firm IdeaWorks Co. That’s a significant rise from the $2.45 billion in add-on revenues that 23 airlines reported in 2008, back when sales from ancillary items were relatively new.
USA Today
Study: Airlines made $27.1 billion in ancillary revenue
Airlines throughout the world generated more than $27.1 billion from fees for services such as checking bags, according to a study out this month. The so-called-ancillary revenue can represent more than 38% of a carrier’s revenue, IdeaWorksCompany, a consultant specializing in so-called “ancillary” revenue, found.
Aviation International
Airlines’ Ancillary Revenue Continues Growth Trend
World airlines collected $27 billion in revenue from products and services other than ticket sales last year, according to the latest annual report by research company IdeaWorks. The total came from data from 53 airlines that disclose ancillary revenue activity.
Daily Star (London)
Airlines in £18million profit thanks to flight extras
Airlines made almost £18billion last year globally by charging extra for things like in-flight food.