News & Research

The latest from IdeaWorksCompany.

Listed below are the most recent posts to the website.  Click on any item (in blue font) to access our latest reports, press releases, and news items.  Or use the menu to the right to browse current and archived reports, articles featuring IdeaWorksCompany research, and current and archived press releases.
Nov 18

November 19, 2019 – Press Release

Airline Ancillary Revenue Projected to Leap to $109.5 Billion Worldwide in 2019
IdeaWorksCompany, the foremost consultant on ancillary revenue, and CarTrawler, the leading provider of online car rental distribution systems, project airline ancillary revenue will reach $109.5 billion worldwide in 2019, compared to $92.9 billion in 2018. The CarTrawler Worldwide Estimate of Ancillary Revenue represents an almost fivefold increase from the 2010 figure of $22.6 billion, which was the first annual ancillary revenue estimate.
Click here for CarTrawler Ancillary Revenue Estimate 2019 Graphic (JPG file)

Nov 07

November 7, 2019 – Keynote Presentation

European Aviation Conference, Jay Sorensen Keynote Presentation
Jay Sorensen was the keynote presenter for the 2019 European Aviation Conference which was held November 7/8, 2019 in Vienna at the University of Vienna, School of Law.  Since 2012, the European Aviation Conference (EAC) has offered a unique meeting place for industry stakeholders, researchers and government officials from across Europe and around the world to discuss timely, policy-relevant issues in aviation with the goal of the seeking insights from best practices and practical solutions to challenges facing the aviation industry.  Click below to also view the presentation for the panel discussion which followed the keynote:
European Aviation Conference, Jay Sorensen Panel Slides

 

Oct 31

October 31, 2019

Overhead bins are a battleground. Here’s what airlines are doing to fix the problem they caused.
Washington Post
“We’ve been living with the legacy of that since then,” says Jay Sorensen, president of IdeaWorksCompany, which consults with airlines on fees.  Last year, according to an estimate from the consultancy, global airlines charged more than $28 billion in baggage fees. That includes checked luggage, charges for bags that are extra-heavy or oversize and some carry-on bags. That total is up from $13.4 billion in 2014.

Oct 28

October 28, 2019

Why Are Airline Websites So Bad at Inspiring Travel?
Skift
Airlines have a problem: They are pretty good at selling flights, but they fail again and again when it comes to inspiring travel, and selling related products, from hotels to vacation packages, and bottles of booze.  Enter Jay Sorensen, a former director of marketing at Midwest Airlines, a consultant, and the president of IdeaWorksCompany, which recently published Finding the Path to Fix Airline Retail.

Oct 15

October 15, 2019 – Report

Finding the Path to Fix Airline Retail
It’s hard to believe we are nearing the 24th anniversary of airline websites – Alaska Airlines sold the first air travel ticket online in December 1995. Fast forward to today, airline websites still promote two core functions: transactions and information retrieval. At present, airline websites are little more than cash registers surrounded by shelves of merchandise. This report encourages airlines to move from a transaction focus to become robust retailers of travel.

A podcast of this report has been recorded, and is available at Spotify and Google Podcasts.  Click this link to listen on Spotify.

Oct 15

October 15, 2019 – Press Release

Becoming the “Amazon of Travel” Should Not Be a Goal for Airlines
CarTrawler-sponsored analysis shows airlines how to stop treating air travel as a commodity and dominate the travel planning process.  It’s hard to believe we are nearing the 24th anniversary of airline websites – Alaska Airlines sold the first air travel ticket online in December 1995. Fast forward to today, airline websites still promote two core functions: transactions and information retrieval. At present, airline websites are little more than cash registers surrounded by shelves of merchandise. This report encourages airlines to move from a transaction focus to become robust retailers of travel.

Sep 29

September 29, 2019

Non-ticket revenues account for more than 10 per cent of airline earnings
Business Traveller
Airlines generated more than $55.7 billion in revenues last year selling everything but airline tickets, according to a report from B2B travel technology platform CarTrawler and ancillary revenue strategists IdeaWorksCompany.  The yearbook and ancillary revenue guide included data on non-ticketed income from 76 airlines and states that such revenues have “remade the business models of the global airline industry.”

Sep 19

September 19, 2019

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.

Sep 17

September 17, 2019 – Press Release

2019 CarTrawler Ancillary Revenue Yearbook Shows $55.7 Billion in Extra Revenue for 76 Airlines
With 76 airlines, the 2019 edition of the CarTrawler Ancillary Revenue Yearbook by IdeaWorksCompany has become a United Nations-like directory filled with airline listings from every continent with the exception of Antarctica. IdeaWorksCompany published the first ancillary revenue guide in 2008 and a grand total of 23 airlines were found to disclose ancillary revenue. The introduction to the report described ancillary revenue as “a relatively young and fragile trend.” Eleven years later, the 2019 edition declares that ancillary revenue has remade the business models of the global airline industry.
Click here for Top 25 Ancillary Revenue Airlines Graphic (JPG file)

Sep 17

September 17, 2019 – Yearbook

2019 CarTrawler Ancillary Revenue Yearbook
IdeaWorksCompany researched financial filings made by 154 airlines all over the world. It’s the biggest Yearbook ever with 140 pages and 76 airlines disclosing qualifying revenue activity. Now available free online, the 2019 Yearbook provides a detailed global review of a crucial revenue source that delivers a jumbo $7.2 billion for American Airlines, 29% of sales for AirAsia, and $18.47 per passenger carried by the Lufthansa Group. The $55.7 billion worldwide total represents 10.7% of all revenue for the 76 airlines in the survey.

If you prefer to read a printed version of the Yearbook, these can be ordered from Amazon.  The price you pay is the cost of printing, along with taxes and delivery.  The Yearbook is available at Amazon.com or you can search your local Amazon Marketplace using this ISBN:  1695413962.
Click here to view at Amazon.com