Jay Sorensen

Airport Lounges Are the Hottest Ticket – Report

This CarTrawler sponsored report describes how lounges are a “must have” amenity for millions of travelers and for millions in airline revenues. The pandemic unleashed consumer craving for amenities to relieve the little miseries that can accompany travel today. Airport lounges have become a hugely popular answer. Today, lounge operators are the beneficiaries of hordes […]

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How airline “drip pricing” can disguise the true cost of flying

CBS News Jay Sorensen, president of IdeaWorks, a consultancy that has advised U.S. airlines, agrees that drip pricing makes comparing airline ticket prices more complicated. But he still thinks it can benefit consumers by letting them pay for the extras they want, while leaving behind those that aren’t important to them. “The outcome is of

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American Airlines Is Once Again Changing How Fliers Can Earn Rewards

Wall Street Journal The lowest-priced reward flight with American on average was 25% cheaper in 2024 compared with five years earlier, according to airline-consulting firm IdeaWorks. Comparatively, the price of a rewards flight, in miles or points, across all of the carriers studied rose 28% on average since 2019. The IdeaWorks analysis was based on 600

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Nine Airline Companies Comprise a $30 Billion Dollar Club Courtesy of Co-Branded Credit Cards – Press Release

Co-branded credit cards deliver wheelbarrows of money for some airlines. The latest IdeaWorksCompany report explores how this has transformed frequent flyer programs (FFPs) and contemplates the effect upon customer loyalty. Many airlines have shifted from sole reliance on behavioral loyalty, which relies upon a customer’s expectations for service and quality. Carriers now embrace transactional loyalty

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Airline Loyalty Becomes a Multi-Billion Dollar Club – Report

CarTrawler sponsored research explores the jumbo economics of loyalty programs at Air Canada, Alaska, American, Delta, JetBlue, IAG, Qantas, Southwest, and United. Co-branded credit cards deliver wheelbarrows of money for some airlines. The latest IdeaWorksCompany report explores how this has transformed frequent flyer programs (FFPs) and contemplates the effect upon customer loyalty. Many airlines have

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There is a reason it’s costing more travel miles to get the same flight

The Street If you recently tried to book a flight with points or frequent-flyer miles, you might have noticed that not only cash prices have jumped significantly. The “they want how much for that flight?” feeling is confirmed by data — IdeaWorksCompany, a consulting firm analyzing airline revenue, calculated that the average price of a

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It’s been harder to accumulate miles but this airline has the best reward redemption rate

USA Today Airline reward tickets are getting more expensive. While cash fares for flights are rising slower than inflation, a new report from IdeaWorksCompany, a consultancy focusing on ancillary airline revenue, shows that reward redemptions are getting even pricier than paid-for tickets. According to the analysis, airline reward ticket prices have increased 28% on average

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Frequent Flyer Programs Deliver Lower Reward Value in the Era of Basic Economy Fares and Co-Branded Cards – Press Release

The 2024 Reward Seat Availability Survey reviews Alaska, American, Delta, JetBlue, Southwest, and United flight rewards. The IdeaWorksCompany Reward Seat Availability Survey answers the question, “How costly is points redemption for the most popular basic reward type offered by top US airlines?” Key overall findings include: • Prices of rewards (in miles or points) has increased

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Branded Fares Dominate Ancillary Revenue for New Airlines All Over the World – Press Release

New entrant airlines provide a unique marketing lesson because they begin with an empty canvas. In theory, start-up teams scan the competitive environment and select features they believe will produce success. Today, new airlines overwhelmingly rely upon branded fares as their primary ancillary revenue method. This is a significant change from ten years ago when

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Seven Young Airlines Try Their Ancillary Revenue Wings – Report

CarTrawler-sponsored analysis reviews the ancillary revenue strategies of seven new entrant airlines: Akasa Air, Air Japan, BeOnd, Bonza, Greater Bay Airlines, Jetlines, and Norse Atlantic.  New entrant airlines provide a unique marketing lesson because they begin with an empty canvas. In theory, start-up teams scan the competitive environment and select features they believe will produce

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