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 the library of reports, articles featuring IdeaWorksCompany research, and archive of press releases.
Mar 19

March 20, 2018 – Press Release

Key Mobile App Features for Top 15 Low Cost Carriers: Assigned Seating, Trip Protection, and Pre-Pay Baggage
IdeaWorksCompany finds Norwegian, Pegasus, Ryanair, and Wizz Air provide great mobile retailing examples.  The latest report from IdeaWorksCompany reviews the mobile applications offered by the world’s largest LCCs as measured by passengers flown.  After all, the LCC category should naturally excel in the art of ancillary revenue.

Feb 28

February 28, 2018

By The Numbers: Airlines Get Charged Up
Forbes
As seats get narrower, airlines are getting fatter off bag fees, meals and other extras. Airlines globally were projected to pull in a record $82 billion in ancillary revenue last year, up nearly fourfold from 2010. Passengers grumble, but such additional revenue is a boost to carrier profitability–and in turn gets invested in new planes, in-flight entertainment and airport waiting areas.

Feb 20

February 20, 2018 – Press Release

European Airlines Lead 2017 a la Carte Revenue Estimate at $19.4 Billion with Asian Carriers 2nd at $15.8 Billion
The CarTrawler Global Statistics of a la Carte Revenue provides regional details, comparisons to 2010 revenue numbers, and a first-ever baggage revenue estimate.  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.  Of these, the revenue from checked baggage looms large with $23.6 billion in estimated sales for 2017.

Jan 18

January 18, 2018

Airline Baggage Fees Go International
Bloomberg
Over the past decade, ancillary revenue at the 10 airlines that collect the most in fees jumped from $2.1 billion to more than $28 billion by 2016, according to IdeaWorks Co. The top three U.S. carriers accounted for $16.3 billion of that amount. Bag fees “have proven to be big revenue generators, and they too will become status quo in the trans-Atlantic by end of 2019, and globally thereafter,” Jay Sorensen, president of IdeaWorks . . .

 

Jan 15

January 15, 2018 – Press Release

Allegiant Air Is 2017 Champ for Revenue Innovation Leadership
IdeaWorksCompany continues an annual tradition by identifying the airlines that have shown the greatest prowess in ancillary revenue, a la carte pricing, and loyalty marketing.  This year, Las Vegas-based Allegiant Air takes the top spot.  Throughout 2017, we assessed the top ancillary revenue producing airlines and the most generous frequent flyer programs; our reports described the industry’s service and product innovations; and we offered practical advice for airline executives.  Along the way, a select group of airlines clearly stood apart in their quest for new sources of revenue success.  These Top 5 Revenue Innovation Champs for 2017 represent the creativity of the front line employees and management teams who delivered exceptional results during the year

Dec 17

December 17, 2017

What Does Your Airfare Actually Buy?
New York Times
Revenue from fees and other payments is “growing every year because it works,” said Jay Sorensen, the president of IdeaWorksCompany, a consulting firm that focuses on the airline industry.  According to a report his company released this fall, the airlines made more than $82 billion in ancillary revenue — fees from passengers and other payments from partners like credit card companies and hotels — in 2017. That is about $46 billion more than five years ago. The report, sponsored by CarTrawler, a company that provides car rental recommendations on many airlines’ websites, used data released by 66 airlines last year to extrapolate the likely ancillary revenue of 184 carriers worldwide.

Dec 03

December 3, 2017

Air Canada’s ‘ancillary’ fees for customers add up to big bucks
CBC News – Canada
Global airlines are expected to earn a record $82 billion US this year by charging customers extra for everything from seat assignment to baggage fees to travel commissions.  And Air Canada is among the top ten airlines in the world when it comes to earning this so-called ancillary revenue, racking up nearly $1.18 billion US last year, according to reports from IdeaWorksCompany, a U.S. research company that tracks airline revenue.

Dec 02

December 2, 2017

Report projects 264 per cent rise in airline fee income since 2010
Business Traveller
The CarTrawler Worldwide Estimate of Ancillary Revenue report from IdeaWorks Company, a consultancy on airline ancillary revenues, and CarTrawler, a provider of online car rental distribution systems, included income earned from a broad range of sources such as hotel booking commissions, the sale of frequent flyer miles to partners, and the provision of a la carte services like checked baggage, premium seating, and priority boarding.

Nov 27

November 28, 2017 – Press Release

Airline ancillary revenue projected to be $82.2 billion worldwide in 2017
The CarTrawler global estimate forecasts 22% increase above 2016, with $57 billion of the total composed of a la carte fee activity.  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 $82.2 billion worldwide in 2017. The CarTrawler Worldwide Estimate of Ancillary Revenue represents a 264% increase from the 2010 figure of $22.6 billion, which was the first annual ancillary revenue estimate.
Click here for an infographic summary (JPG file) of key findings.

Oct 31

October 31, 2017 – Report

2017 Top Merchandising Innovations to Delight Passengers and Boost Profits
The 2017 merchandising report, released today by IdeaWorks and CarTrawler, describes how innovation in other industries, and within the travel business, can help airlines delight travelers and boost profits. The following are six examples from the report:  Allegiant’s new Florida condo resort, Worldwide connections by easyJet, Delta’s baggage tracking app, Tui’s (Netherlands) mobile solution for buy on board, Jeju Air’s sleeping seat package, and the Clube Smiles subscription program by GOL.