Apr 14

April 14, 2017

Are all frequent-flier programs the same? We asked a rewards expert
Dallas Morning News
For decades, airline frequent-flier programs were based on a simple premise — the farther you flew, the more rewards you earned. But those days have largely come to an end, at least in the United States. American Airlines last year became the latest major carrier to change their frequent flier program to be based on the price of the ticket rather than the distance flown, mirroring steps taken by United, Delta and Southwest. Frequent-flier expert Jay Sorensen chronicled these changes in a recent report, comparing the different ways airlines around the world reward their most loyal customers.

Feb 22

February 22, 2017

Best Practices in Capturing Airline Ancillary Revenues on Mobile
WIT Web in Travel
Here are the best methods used by the top 25 airlines to capture ancillary revenues on mobile, according to a report from IdeaWorksCompany. The latest report, “Ancillary Revenue Goes Mobile: The Best Methods Used by the Top 25 Airlines” from IdeaWorksCompany, researched the in-path booking capabilities of the mobile applications offered by the world’s largest 25 airlines.

Dec 28

December 28, 2016

Here’s Why Alaska Airlines Is Keeping Its Generous Frequent Flyer Program
“There is a component of the marketplace that is very sizable — perhaps 50 percent —that will only consider price, even with the inconvenience of a connection versus a nonstop,” said Jay Sorensen, an expert on loyalty at IdeaWorksCompany who has consulted for several airlines, including Alaska. “But frequent flyer programs have never seen designed to win everyone. They have been designed to win at the margins.”

Dec 02

December 2, 2016

Airlines to charge for food, seats and other facilities to up ancillary income
The Star, Malaysia
EMIRATES, the world’s largest airline by international passenger traffic in 2015 which saw a 75% drop in profit for the six months to September this year, is now charging a seat assignment fee for its lowest price fares.  Come Jan 11, British Airways will start charging for snacks and drinks for its European flights on economy class, complimentary now, on short-haul flights defined as five hours or less.  This is part of the plan to grow ancillary income, which is non-ticket sources such as baggage fees, on-board food and services, seating, selling frequent flier miles to parties and even early boarding.  A recent report by ancillary revenue consultancy, IdeaWorks, and online car rental booking company, CarTrawler, predicts that ancillary incomes will reach US$67.4bil this year. This is a 200% increase from US$22.6bil in 2010. It based its projections on the ancillary revenue activity of 178 global airlines.

Dec 01

December 1, 2016

Airlines expected to rake in $US67.4b globally from extra lucrative services
National Business Review – New Zealand
The amount airlines make from charging travellers for extras such as in-flight food and drink or selecting a seat with more leg room, is forecast to rise by 13.8% this year to $US67.4 billion.  The projection, from airline ancillary revenue consultancy IdeaWorks and online car rental booking company CarTrawler, covers 178 airlines. They predict the additional lucrative income airlines worldwide make from travellers has risen nearly 200% since 2010 and now accounts for an estimated 9.1% of airline revenue globally.