Press Releases

Airlines Can Best Boost Ancillary Revenue Through Empathy, Competence, and Kindness
Michael O’Leary, the CEO of Ryanair, recently admitted “If I had known being nicer to our customers was going to work so well, I would have done it years ago.” As notable as O’Leary’s epiphany is to the airline industry, it’s worth pointing out that the proven value of empathy, competency, and kindness precedes his recent directives to be nice to customers. The latest report from IdeaWorksCompany explores how airline management teams can work together for the greater good of their customers, employees, and investors.

Vueling Airlines Is 2014 Champ for Revenue Innovation and Marketing Leadership
IdeaWorksCompany begins a new year-end tradition by identifying the airlines that have shown the greatest prowess in the areas of ancillary revenue, a la carte pricing, and loyalty marketing. Throughout 2014, we assessed the top ancillary revenue producing airlines and the most generous frequent flier programs, and issued reports that described the industry’s service innovation and product development; as well as offering practical advice for airline executives.  The top 5 revenue innovators named by IdeaWorksCompany also include Delta Air Lines, Wizz Air, Ryanair, and Jeju Air.

Profit From Innovation: Ancillary Revenue Examples From Around the World
IdeaWorksCompany and CarTrawler offer a global a la carte buffet from 20 companies including
Aer Lingus, Amazon, American Airlines, Lufthansa, and Tune Hotels.  Retail-oriented airlines are trying new concepts, testing results in the marketplace, and quickly tossing those don’t produce results.  The latest IdeaWorksCompany report reviews innovations that rely upon consumer desire for more comfort, convenience, and certainty. The companies featured in this report know that when a service provides good retail value consumers will click to buy it.  “Profit From Innovation: Ancillary Revenue Examples From Around the World” was released today as a free 19-page report available at the IdeaWorksCompany website

Airline ancillary revenue projected to be $49.9 billion worldwide in 2014 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 $49.9 billion worldwide in 2014.  The CarTrawler Worldwide Estimate of Ancillary Revenue represents a massive increase of 121% from the 2010 figure of $22.6 billion.  Earlier this year, CarTrawler and IdeaWorksCompany reported the ancillary revenue disclosed by 59 airlines for 2013. These statistics were applied to a larger list of 180 airlines to provide a truly global projection of ancillary revenue activity by the world’s airlines in 2014.
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Worldwide Estimate of Ancillary Revenue GRAPHIC

Revenue-Based Points Accrual May Be the New World Order
Delta Air Lines has certainly created a strong tailwind for itself. Profits are at record levels, corporate debt is declining, lie-flat seating has been introduced globally to business class, and the cash dividend has been increased for shareholders. The airline has expressed a profound eagerness to change almost everything about its business, so it’s not surprising this philosophy finally touched the SkyMiles program.  The latest IdeaWorksCompany report reviews how the frequent flier business is positioned for change due to moves made by key players and their desire to revolutionize accrual methods.

2013 Airline Ancillary Revenue Lifts to $31.5 Billion – Up Nearly 1200% Since 2007
The annual CarTrawler survey of global airline ancillary revenue shows growth to $31.5 billion for 2013 ─ an increase of 1200 percent since the first such survey in 2007. IdeaWorksCompany researched the financial filings made by 114 airlines all over the world, 59 of which disclose ancillary revenue activity, to reveal that ancillary revenue reported by airlines reached $16 per passenger in 2013, easily surpassing global figures for profit per passenger. This press release describes highlights from this research and a top 10 list of best performing carriers in three categories.
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CarTrawler Survey of Airline Ancillary Revenue GRAPHIC

Southwest, airberlin, Virgin Australia Still Tops For Rewards, But Delta and Turkish Airlines Make Big Leaps Upward
Value-oriented airlines dominate the results in the 5th annual Switchfly Reward Seat Availability Survey. Airberlin, Southwest, and Virgin Australia have placed within the top six slots for every edition of the reward survey since 2010. For 2014 airberlin and Southwest share first place with outstanding 100% scores; every flight queried in the survey provided reward seats at saver-style levels. The 25 carriers in the survey remained the same as 2013, except China Southern replaced AirTran as the latter continues to be absorbed by its parent Southwest Airlines.
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Switchfly Reward Seat Availability Survey GRAPHIC 

Baggage, Branded Fares and Big Revenue: Top 10 things to know about ancillary revenue
The business upheaval that began in the air travel industry a decade ago has now grown to span the globe, has brought economic vitality back to the world’s airlines, enabled the worldwide boom in low-cost travel, and granted consumers the gift of choice.  And the ancillary revenue revolution is spreading its ideas and impacts from air travel into companion industries such as lodging, cruising, car rental, credit cards, dining and more.  Top 10 Things You Need to Know about Ancillary Revenue, the newest report from CarTrawler and the IdeaWorksCompany, describes the depth and breadth of this phenomenon, which has transformed the world’s largest industry.

Points, Pillows and Porsches: Hotel and Car Rewards at the Top 30 Airlines
Whether intentional or not, every frequent flier program creates a brand image in the minds of its members.  Some airlines take an approach that provides the bare troika of essentials:  reward tickets, partner airline tickets, and upgrade rewards.  Fortunately for consumers, more of the world’s top airlines choose a more robust retail approach by adding a global selection of hotel and car rental rewards.  Of the top 30 airlines assessed by IdeaWorksCompany, the majority provide more reward options with the likely objective being to make their programs more attractive to customers.

VIP for a Fee: Eleven Airlines Now Sell Airport Services Designed for High Value Customers
At the highest level of service and status, airlines will meet and greet passengers at the curb, provide private screening, and whisk them to planeside in a sedan car on the ramp.  This level of service eludes most elite-status travelers but is now within the grasp of anyone with the swipe of a credit card.  The latest report from IdeaWorksCompany reviews how airlines all over the world now sell extra pampering to passengers for a profit.  VIP treatment, such as early boarding, bonus miles, fast track screening, and first class upgrades, has proven to produce the revenue payback eagerly desired by airline management.