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.
May 21

May 21, 2019 – Press Release

IKEA Teaches Everything You Need to Know About Airline Retail
IKEA is not an airline, but it is one of the world’s master retailers. The company’s relationship with customers doesn’t depend on pushing transactions. Instead the company seeks to offer “products at prices so low that as many people as possible will be able to afford them.” It has become a global success because it first seeks to meet customer needs. This distinctive style also defines retail-savvy ways to boost revenue for airlines, which are described in a 15-page report sponsored by CarTrawler.

May 21

May 21, 2019 – Report

IKEA Teaches Everything You Need to Know About Airline Retail
CarTrawler-sponsored report shows IKEA’s merchandising methods are also used by
AirAsia, Air New Zealand, Allegiant, easyJet, Ryanair, and Scoot.  IKEA is not an airline, but it is one of the world’s master retailers. The company’s relationship with customers doesn’t depend on pushing transactions. Instead the company seeks to offer “products at prices so low that as many people as possible will be able to afford them.” It has become a global success because it first seeks to meet customer needs.  IKEA Teaches Everything You Need to Know About Airline Retail was released today as a free 15-page report sponsored by CarTrawler.

Apr 30

April 30, 2019 – Press Release

Global Baggage Fee Revenue Jumps to $28.1 Billion
CarTrawler Global Estimate of Baggage Fee Revenue reveals 110% increase from 2014 estimate of $13.4 billion.  IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, the leading technology platform providing transport solutions for online businesses, recently estimated ancillary revenue at $92.9 billion worldwide for 2018. This CarTrawler Global Estimate of Baggage Fee Revenue identifies baggage as a $28.1 billion component and provides a worldwide summary of baggage fee policies for 20 top airlines.

Mar 19

March 19, 2019 – Press Release

Allegiant Airlines’ Ancillary Revenue Initiatives are Among the Most Effective and Innovative in the World
Allegiant is based in Las Vegas, but it has never relied upon the notion of “luck” as part of its business strategy. The airline was born in 1997 and immediately challenged all the rules of how to start an airline. Allegiant maintains its industry leading margins by distancing itself from competitors, and as you will read in this latest report, by being very different from everyone else. This distinctive style includes innovative ways to generate ancillary revenue

Mar 19

March 19, 2019 – Report

Allegiant Flies Its Own Route to Revenue Success
IdeaWorksCompany started tracking ancillary revenue in 2007 and Allegiant has reliably been among the best performers when measured as a percent of revenue or on a per-passenger basis. This success has been attained through a rigorous approach to a la carte sales and travel-related packaging.  This CarTrawler-sponsored report describes how Allegiant is mastering the art of a la carte and seeks to capture even more of a consumer’s leisure and entertainment spending

Feb 26

February 26, 2019 – Interview

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.

Feb 26

February 26, 2019

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.

Feb 19

February 19, 2019 – Press Release

European Airlines Lead 2018 a la Carte Revenue Estimate at $22.5 Billion with Asian Carriers 2nd at $18.8 Billion
IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, the leading technology platform providing full end to end transport solutions for online businesses, recently estimated airline a la carte revenue at $65 billion worldwide for 2018. The CarTrawler Global Statistics of a la Carte Revenue adds regional details and 2014 comparisons to the figures from the earlier November 2018 release.  A la carte activity is a significant component of ancillary revenue and consists of the amenities consumers can add to their air travel experience. These include fees paid for checked baggage, assigned seats, buy-on-board meals, early boarding, and onboard entertainment.

Feb 13

February 13, 2019

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.

Feb 13

February 13, 2019

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.