Top Merchandising Innovations to Delight Air Travelers and Boost Profits
IdeaWorksCompany explores how American, AnadoluJet, Eurowings, Jazeera, Virgin Atlantic,
and other airlines are becoming better retailers. The latest report from IdeaWorksCompany provides a wide variety of examples − covering traditional airlines, low cost carriers, and suppliers from all over the world – to demonstrate unique methods that generate more revenue from the sale of tickets and ancillary revenue activities.
Switchfly Hotel Reward Payback Survey
IdeaWorksCompany releases results from the second annual Switchfly Hotel Reward Payback Survey, which now includes 6 global programs. During August 2016, IdeaWorksCompany conducted 1,305 reward queries for key hotel brands in six global frequent guest programs: Choice Privileges, Hilton HHonors, IHG Rewards, Marriott Rewards, Starwood SPG, and Wyndham Rewards. For example, Wyndham Rewards returns an average of 13.6% from room night spending as reward stay value. That’s a 143% higher return than the reward value provided by Starwood SPG, which was ranked last among the six hotel loyalty programs at 5.6% for reward payback.
Click here for an infographic summary (JPG file) of key findings.
2015 Top 10 Ancillary Revenue Rankings
Every year since 2008, IdeaWorksCompany searches for disclosures of financial results which qualify as ancillary revenue for airlines all over the globe. Annual reports, investor presentations, financial press releases, and quotes attributed to senior executives all qualify as sources in the data collection process. Of the 135 airlines reviewed, 67 were found to reveal financial results related to ancillary revenue. From this list, total airline revenue and ridership data were collected to determine the top ten airlines in overall ancillary revenue, as a percentage of company revenue, and on a per passenger basis.
Southwest and airberlin Top Reward Rankings but Turkish Airlines and Air China Rise High
The 7th annual Switchfly Reward Seat Availability Survey also finds JetBlue has best reward payback among major North American carriers. Value-oriented airlines dominate the top tiers of the 7th annual Switchfly Reward Seat Availability Survey. Two global carriers made significant improvements to their rankings. Turkish Airlines had the 4th best reward seat availability for 2016, which is much improved from its 15th place ranking in 2015. Likewise, Air China showed big improvement by moving to the 10th slot from 18th place in 2015.
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Switchfly Reward Seat Availability Survey Infographic
Never Say Goodbye; Savvy Airlines Use Email to Sell After Booking
The need for ancillary revenue requires airlines to venture beyond the booking confirmation email. This report follows that path to learn how airlines gain more sales after a booking is made. IdeaWorksCompany assessed the full set of emails sent by six top ancillary revenue airlines to learn how they encourage customers to buy more. Examples from Aer Lingus, AirAsia, easyJet, Ryanair, Spirit, and Vueling provide a global display of these retail skills.
Path to Profits: How the Best Airlines Promote a la Carte Sales in the Booking Path
Website examples from all over the world illustrate best practices on fare displays, baggage pre-pay, seat upgrades, and other top a la carte items. The latest report from IdeaWorksCompany reviewed the websites of airlines all over the world and details good practices regarding booking paths ─ and also what airlines should avoid.
How Do I Reward Thee? Let Me Count the Ways Dear Traveler
Loyalty is increased through a wide array of methods. To be exact, IdeaWorksCompany identifies six additional loyalty platforms beyond a traditional frequent flier program. Some may operate as replacements for traditional FFPs and others work to increase the loyalty of customers through a combination of rewards and recognition. The latest report issued by IdeaWorksCompany describes the many loyalty choices available, such as coalition programs, subscription plans, and credit-card based rewards.
Airline ancillary revenue projected to be $59.2 billion worldwide in 2015
IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, the leading provider of online car rental distribution systems, project airline ancillary revenue will reach $59.2 billion worldwide in 2015. The CarTrawler Worldwide Estimate of Ancillary Revenue represents a giant increase of 163% from the 2010 figure of $22.6 billion, which was the first year for the ancillary revenue estimate.
The Airline Manual for Merchandising
The basic fare with a la carte extras has given way to bundling, branded fares,and the promise of personalized pricing. Visit the websites of leading airline retailers today and you will see a robust display of various pricing methods. Consumers encounter branded fares, service bundles, subscription plans with prices that are fixed, flexible, or dynamic. Someday they will also encounter pricing which is aimed at them as individual consumers. The latest report issued by IdeaWorksCompany is designed to prepare industry professionals for the decision-making required to take merchandising to the next level with examples from the world of airline retail.
Marriott Rewards Found to Offer Best Reward Payback Among Leading Global Hotel Loyalty Programs
Marriott Rewards returns an average of 9.4% from room night spending as reward stay value in the first Switchfly Hotel Reward Payback Survey. That’s a 54% higher return than the reward value provided by Starwood SPG, which was ranked last among the four hotel loyalty programs at 6.1% for reward payback. During July 2015, IdeaWorksCompany conducted 1,440 reward queries for key hotel brands in four global frequent guest programs: Hilton HHonors, IHG Rewards, Marriott Rewards, and Starwood SPG. The result provides an average “reward payback” for each program, which is described in this press release.
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Switchfly Hotel Reward Seat Survey 2015 Graphic