Articles about IdeaWorksCompany

Airlines Reached 52 Billion Francs Through Additional Sales
Travelnews – Switzerland (This article was published in German)
Das Geschäftsmodell der Airlines hat sich grundlegend verändert. Zu diesem Schluss kommt die Idea Works Company nach der Untersuchung der Zusatzumsätze von 154 Fluggesellschaften weltweit.  2008 veröffentlichte das Unternehmen Idea Works Company ihr erstes CarTrawler-Jahrbuch über die ausserhalb des reinen Beförderungspreises generierten Umsätze von Fluggesellschaften. Damals wurden 23 Airlines detailliert mit ihren Zahlen aufgelistet und die Buchbarkeit von zusätzlichen Leistungen wurde als «einen jungen und fragilen Trend» eingestuft. Nun ist die Ausgabe 2019 mit Ausweisung detaillierter Zusatzumsatzzahlen von 76 Fluggesellschaften erschienen und zeigt, dass sich das Geschäftsmodell der Flugbranche massiv verändert hat.

Airlines’ Drive To Grow Extra Fees And Services Is Paying Off Big — For Them
Forbes
Sixteen out of every $100 that American Airlines collected from its customers in 2018 came from the sale of something other than seats on a plane, according to a recent study from IdeaWorks. At United it was $14 out of every $100 in revenue. Delta got $12.50 out of every $100 it was paid for things other than a ticket.  Meanwhile maverick Southwest Airlines, the granddaddy of low cost/low fare carriers, outdid its conventional rivals by scoring $18 out of every $100 of revenue last year from the sale of services beyond a basic flight ticket.

FluggesellschaftenA verdienen Milliarden durch Zusatzeinnahmen
Airliners.de
Zusatzeinkünfte machen bei Fluggesellschaften einen immer wichtigeren Teil der Umsätze aus. Eine neue Studie zeigt, wie viel auch Netzwerk-Airlines mittlerweile durch die sogenannten Ancillaries verdienten.  Das geht aus einer aktuellen Studie des Technologiedienstleisters “CarTrawler” und der Beratungsgesellschaft “IdeaWorksCompany” hervor.
Translated from German:  Additional income makes up an increasingly important part of revenue for airlines. A new study shows how much network airlines have now earned through the so-called Ancillaries.  This emerges from a recent study by the technology service provider “CarTrawler” and the consulting company “IdeaWorksCompany”.

Airline award seats cheaper, easier to find. Wait. What?
Houston Chronicle
The 2019 study of airline award travel by IdeaWorks Company found that not only has free seat availability improved this year compared with 2018 on most carriers, but that over the past five years – i.e., since dynamic award pricing started to kick in – the average mileage/point cost of an economy class reward ticket on major U.S. airlines has declined significantly.

The Best Frequent-Flier Awards Programs of 2019
The Wall Street Journal
IdeaWorks president Jay Sorensen says award programs have needed to become more generous. Among the biggest factors: They’re feeling pressure from credit card companies that buy billions of dollars of miles from airlines each year as rewards on credit cards. If it’s too difficult to redeem the miles, consumers will switch to other cards with rewards they can actually use.
Click here to view the print version of the article.
Scott McCartney also created a video to accompany the article – click here to view.

Revenue Raisers
Low Fare & Regional Airlines Magazine
IdeaWorks has been tracking the growth of airline ancillary revenues – defined as revenue beyond the sale of tickets that is generated by direct sales to passengers or indirectly as a part of the travel  experience – since 2010. For 2018, in conjunction with technology platform CarTrawler, IdeaWorks estimated total airline ancillary revenue at $92.9 billion – a 312% increase on the 2010
figure of $22.6 billion and 10.7% of the industry’s global $871 billion revenue.

Airlines’ credit cards in ‘arms race’ to profits
Travel Weekly
Last November, IdeaWorksCompany estimated that U.S. airlines in 2018 would make approximately $15.6 billion in combined revenue from the sale of credit card points and from commissions from sales of partner products such as car rentals and travel insurance. Of that $15.6 billion, approximately $14 billion was expected to come from credit card points, Sorensen said.

Slate Money Travel on the history and business of airline miles
Slate Money
Airline-loyalty-program expert Jay Sorensen joins Episode 2 of this new miniseries from Slate Money all about travel. Felix and Jay talk about the history of airline miles and the fascinating relationship between traveler, bank, and airline.  Click here to listen to the 42-minute interview at Slate.com.

Read the Interview

Why the airline that inspired Ryanair still refuses to charge for luggage
The Telegraph – London
An annual study of “ancillary” revenue, which includes all income beyond the standard airfare, shows that the top 10 carriers worldwide raked in more than $29.7 billion (£23bn) in 2017, up from just $2.1bn (£1.6bn) in 2007.  The CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany analysed financial documents for 138 airlines. Unsurprisingly, Ryanair, and other low-cost carriers whose business models revolve around cheap fares and costly “optional” fees, feature prominently.

Southwest Airlines doesn’t assign seats and honestly, this sounds like a nightmare
News.com.au News Australia
A recent joint report from research firm IdeaWorks and Dublin travel tech company CarTrawler estimated airline ancillary revenue would reach $131 billion worldwide in 2018.  The report, released in November, estimated that would be about $30.05 in extra fees per passenger.  And it’s a 312 per cent increase on the 2010 figure.