From global network airlines to low cost carriers, baggage is the top a la carte revenue performer. The latest report from IdeaWorksCompany describes innovations focusing on carry-ons, baggage check-in, and booking path displays. Fees for carry-on bags are the latest development in the global quest for ancillary revenue. Low cost carriers have always led the way here and this encouraged more and more traditional airlines to adopt fees. The 20-page report includes better baggage business examples from these carriers: Aer Lingus, AirAsia, Air France, American, Delta, EasyJet, Frontier, JetBlue, Jetstar, Qantas, Ryanair, Spirit, United, Volaris, and Volotea.
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IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, leading global B2B provider of car rental and mobility solutions to the travel industry, recently estimated ancillary revenue at $65.8 billion worldwide for 2021. This CarTrawler Global Estimate of Baggage Fee Revenue identifies baggage as a $20.9 billion component and provides a summary of baggage fee policies for 20 top airlines. Baggage fees have become more important to airlines during the course of the pandemic. This is evidenced by bag fees’ share of global airline revenue growing from 3.7% in 2019 to 4.6% for 2021. This trend applies for the wide range of optional extras that define ancillary revenue. Look for airlines to increase revenue from these activities by expanding flexible pricing and bundled fares and better retailing through online travel agents and mobile devices.
The pandemic has taught us that competition does exist for the air travel spending by leisure and business travelers. Airline consumers identified alternatives during the pandemic and the best of these solutions will have staying power for the future. The Airline Industry Has Changed – Convenience and Predictability Are Missing is sponsored by global travel tech provider CarTrawler and was released today. This IdeaWorksCompany 15-page report describes how the industry has changed and provides ideas on how revenue can be increased and more traffic can be captured. Airlines will face moments during 2022 that define whether they continue to struggle or return as robust providers of service to leisure and business travelers. The magic of surviving, and even thriving, is determined by how airlines adapt to what is new and maximize what will remain the same.
Airline Ancillary Revenue Begins Recovery with a 13% Increase to $65.8 Billion for 2021 – Press Release
CarTrawler, the leading provider of online car rental distribution systems, and IdeaWorksCompany, the foremost consultant on ancillary revenue, project airline ancillary revenue will increase to $65.8 billion worldwide in 2021, compared to $58.1 billion in 2020. The CarTrawler Worldwide Estimate of Ancillary Revenue represents an increase built upon 2021 passenger traffic gains, with consumer support for a la carte services and co-branded credit cards holding steady. Earlier this year, CarTrawler and IdeaWorksCompany reported the ancillary revenue disclosed by 75 airlines for 2020. These statistics were applied to a larger list of 109 airlines to provide a truly global projection of ancillary revenue activity by the world’s airlines for 2021. This marks the 12th year IdeaWorksCompany has prepared a projection of ancillary revenue activity.
Allegiant, Spirit, Viva Aerobus, and Wizz Air Pass 50% Threshold for Ancillary Revenue in 2020 – Press Release
The 2021 edition of the CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany, released today as a 136-page report, describes the 2020 ancillary revenue activities and results for 75 airlines. The pandemic sliced passenger traffic and revenue by more than 50% last year. Yet, most of the world’s airlines survived 2020, which is an amazing accomplishment. In a year of gloom, the positive performance of ancillary revenue provided desperately needed support. An assessment of these results indicates ancillary revenue was the only financial success for airlines in 2020. This is the first year with Wizz Air in the #1 slot, which has traditionally been held by North American carriers such as Spirit, Viva Aerobus, and Allegiant. The 55.9% result for Wizz Air also represents a yearbook record; the prior record of 47.6% was established by Viva Aerobus for the 2018 period.
Asian Carriers Dominated 2020 with China Southern Bumping American Airlines from Top Slot – Press Release
The new Datalex Big Book of Airline Data by IdeaWorksCompany offers passenger traffic, airline revenue, and frequent flyer info for 188 airlines from Aegean to Zhuhai. Dublin, Ireland & Shorewood, Wisconsin, 12 August 2021: Datalex, a market leader in digital commerce for retail travel, and IdeaWorksCompany, the foremost consultant on ancillary revenue, have released the second edition of The Datalex Big Book of Airline Data by IdeaWorksCompany. The 2021 edition provides a world of airline industry data collated by alphabetical order, size, airline type, region, and alliance.
• Asia & South Pacific airlines had the largest share of world traffic at 40.9%, which represents a distinct increase above 34.6% for 2019.
• The big 4 airlines of China (Air China Group, China Eastern Group, China Southern Group, and Hainan Airlines Group), posted a 41.4% traffic drop, which was significantly below the global weighted average of 54.9%.
• US & Canada airlines had the largest year-over-year revenue drop of 63%, which was higher than the global weighted average of 55.8%.
The 78-page “Big Book” is available free of charge via download at Datalex.com and IdeaworksCompany.com.
80% of Leading Network Airlines Rely on a la Carte Fees from Standard Seat Assignments – Press Release
For many airlines, revenue from seat assignment sales has moved up the income statement from a minor presence to a strong #2 spot. For some, this can be a billion-dollar result, and for every other airline it’s a multi-million-dollar business. Seat Assignment Fees Firmly on Airline Radars is sponsored by global travel tech provider CarTrawler and was released today. The IdeaWorksCompany 16-page analysis describes the methods deployed by airlines to encourage consumer acceptance and recommends four tools to maximize seat assignment revenue.
American, Delta, easyJet, Emirates, and IATA Provide Examples of How to Save the Airline Industry – Press Release
Innovation can create the consistency sought by consumers and the revenue needed by airlines. CarTrawler and IdeaWorksCompany continue the “Transformation 2021” series of reports with a second installment to guide the airline and travel industries to the light at the end of the pandemic tunnel. Transformation 2021: Consistency and Innovation Will Save the Airline Industry is sponsored by global B2B travel tech provider CarTrawler and was released today. The IdeaWorksCompany 16-page analysis describes the many methods deployed by airlines to boost traffic and revenue during the recovery. The report also includes examples of ancillary revenue innovation by Austrian, Lufthansa, and SWISS, along with a table summarizing the methodology and features for the primary two types of health passports. The full report is available for download on the Reports page.
Survey of 25 Leading Airlines Identifies Global Use of Four Strategies to Support COVID-19 Recovery – Press Release
CarTrawler-sponsored research finds that guidance for travel restrictions and Covid-19 testing is now provided by most airlines. Airlines are recognizing the need to expand Covid-19 care beyond physical safety measures to new areas such as providing more online information and service features. Face masks and disinfected aircraft have become standard consumer expectations. The recovery phase of the pandemic requires an expansion of these efforts. The following describes the key recovery-supporting features identified at airline websites during March 2021:
• Travel Restriction Info Provided: Airlines are posting information on the requirements travelers must fulfill before boarding an aircraft or entering a country.
• Testing Info Provided: Travelers now face the hurdle of getting tested shortly before departure. Airlines are taking responsibility for identifying local and mail-in testing options, and negotiating discounts.
• Key Covid Protection Included with Trip Insurance: Consumers are curious about buying protection against financial losses due to Covid-19 travel uncertainties. Airlines can advise consumers how the coverage sold at their websites protects (or does not protect) from Covid-19 risks.
• Change Fees Waived for New Bookings: Consumers hope for flexibility during these uncertain times. Most airlines helpfully continue to waive change fees to encourage confidence (and ticket sales).airlin