Financial Review of Australia
Qantas frequent flyer changes ‘bewildering’ for customers
Qantas Airways may have marketed recent changes to its frequent flyer program as “simpler and fairer”, but in reality the airline added “daunting complexity” to its loyalty scheme, according to a new report from US consulting firm IdeaWorksCompany.
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Financial Review of Australia
Airlines go à la carte: Why travellers should get used to baggage fees and more ‘unbundling’
“We predict that the inclusion of free baggage as a benefit of a fare will disappear worldwide over the course of the next few years,” said Jay Sorensen, president of IdeaWorksCompany, a Wisconsin-based consulting firm that helps airlines generate more revenue through ancillary fees. According to research by IdeaWorksCompany, global airline ancillary revenue soared nearly 1,200% between 2007 and 2013 as more carriers embraced the concept of “unbundling,” or charging separately for a variety of services.
Selling those little extras pushes Jetstar into top 10
THE Jetstar Group has emerged among the top 10 airlines in the world when it comes to the percentage of its revenue derived from selling extras to passengers. . . IdeaWorksCompany has been trawling through airlines’ results to calculate ancillary revenues since 2007 and its first report identified $US2.45bn from 23 airlines globally, or about $US6.99 a passenger.
Airline Profits Are Up, Thanks To Everything But Airfares
IdeaWorks and its partner, the Irish-based CarTrawler, examined financial reports from 59 airlines around the globe. Among carriers in the U.S., non-ticket fees accounted for 10.2 percent of industry revenue in 2013.
How budget airlines REALLY make their money: Jet2 and Wizz Air rely on optional extras MORE than Ryanair, with only 65% of their income coming from ticket price
The world’s top airlines collected more than £31.5billion in extra charges in 2013, an increase of more than £4billion on the previous year. Some airlines are making up to 40 per cent of their money from charging for extras like seat allocation, checking in luggage and food and drink on flights, according to a report by consultancy IdeaWorksCompany.
Sydney Morning Herald
What’s keeping the airline industry alive
The flying business has a cute name for it: “a la carte”. That’s how the airline industry now dresses up all the extras airline passengers are hit with in its latest marketing fad. But don’t be mistaken that the so-called ancillary revenue fad, which has been around only since the middle of the last decade, is temporary. The crude mathematics in last week’s definitive annual report on the subject, by a US consulting firm, IdeaWorksCompany, show how desperately dependant the airline industry has become on ancillary revenue.
Wizz Air and Jet2.com worse than Ryanair for extras
Airlines around the world collected at least £31.5 billion in extra charges last year, a new study has shown, an increase of more than £4 billion on last year’s figure, and up 1,200 per cent since 2007. The report, by the consultancy IdeaWorksCompany, examined “ancillary” revenue – baggage charges, car hire commission, sales of in-flight food and drink and so forth – at 59 major airlines.
Airlines raked in $31.5 billion in fees in 2013
The latest study on passenger fees collected by the world’s airlines reached a predictable conclusion: Airlines are pocketing more than ever. The annual tally by IdeaWorksCompany, a Wisconsin-based consultant to the airline industry, found that 59 airlines collected $31.5 billion in fees in 2013, compared with $27.1 billion for 53 airlines in 2012.
Airline fees surge to $31.5 billion
Air carriers took in $31.5 billion US in revenue from fees last year, according to a survey conducted by IdeaWorksCompany, a firm that helps airlines grow non-traditional revenue streams, and CarTrawler, a car rental services company.
Rankings for Frequent Flier Programs: How Airlines Fared
“The programs at the top are younger programs,” says Jay Sorensen, president of loyalty consulting firm IdeaWorksCompany, which sponsors an annual survey on award availability. “They don’t have these big huge overhanging liabilities of miles or points that have been accrued through credit-card activity. There isn’t this huge pile of points they’re trying to get off the books, where you have too many miles chasing too few reward seats.”