Articles about IdeaWorksCompany

The latest from IdeaWorksCompany.

Listed below are the most recent posts to the website.  Click on any item title or button to access our latest reports, press releases, and news items.  Or use the menu to the right to browse news, reports, articles featuring IdeaWorksCompany research, and press releases.

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.

October 28, 2019

Why Are Airline Websites So Bad at Inspiring Travel?
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.

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.”

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.

August 1, 2019

Airlines’ Drive To Grow Extra Fees And Services Is Paying Off Big — For Them
Sixteen out of every $100 that American Airlines collected from its customers in 2018 came from the sale of something other than seats on a plane, according to a recent study from IdeaWorks. At United it was $14 out of every $100 in revenue. Delta got $12.50 out of every $100 it was paid for things other than a ticket.  Meanwhile maverick Southwest Airlines, the granddaddy of low cost/low fare carriers, outdid its conventional rivals by scoring $18 out of every $100 of revenue last year from the sale of services beyond a basic flight ticket.

July 29, 2019

FluggesellschaftenA verdienen Milliarden durch Zusatzeinnahmen
Zusatzeinkünfte machen bei Fluggesellschaften einen immer wichtigeren Teil der Umsätze aus. Eine neue Studie zeigt, wie viel auch Netzwerk-Airlines mittlerweile durch die sogenannten Ancillaries verdienten.  Das geht aus einer aktuellen Studie des Technologiedienstleisters “CarTrawler” und der Beratungsgesellschaft “IdeaWorksCompany” hervor.
Translated from German:  Additional income makes up an increasingly important part of revenue for airlines. A new study shows how much network airlines have now earned through the so-called Ancillaries.  This emerges from a recent study by the technology service provider “CarTrawler” and the consulting company “IdeaWorksCompany”.

July 1, 2019

Airline award seats cheaper, easier to find. Wait. What?
Houston Chronicle
The 2019 study of airline award travel by IdeaWorks Company found that not only has free seat availability improved this year compared with 2018 on most carriers, but that over the past five years – i.e., since dynamic award pricing started to kick in – the average mileage/point cost of an economy class reward ticket on major U.S. airlines has declined significantly.

June 26, 2019

The Best Frequent-Flier Awards Programs of 2019
The Wall Street Journal
IdeaWorks president Jay Sorensen says award programs have needed to become more generous. Among the biggest factors: They’re feeling pressure from credit card companies that buy billions of dollars of miles from airlines each year as rewards on credit cards. If it’s too difficult to redeem the miles, consumers will switch to other cards with rewards they can actually use.
Click here to view the print version of the article.
Scott McCartney also created a video to accompany the article – click here to view.

June 1, 2019

Revenue Raisers
Low Fare & Regional Airlines Magazine
IdeaWorks has been tracking the growth of airline ancillary revenues – defined as revenue beyond the sale of tickets that is generated by direct sales to passengers or indirectly as a part of the travel  experience – since 2010. For 2018, in conjunction with technology platform CarTrawler, IdeaWorks estimated total airline ancillary revenue at $92.9 billion – a 312% increase on the 2010
figure of $22.6 billion and 10.7% of the industry’s global $871 billion revenue.

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.

Scroll to Top