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Travel Boom Drives Sharp Increase in US Airline Reward Prices – Press Release

March 13, 2025

American and Southwest offer lowest prices in the US Domestic Reward Report, which is the latest Pro Series Report by IdeaWorksCompany. Inflation has worked its way through every nook and crevice of the US economy. The Consumer Price Index posted a 24% increase since the pre-pandemic period of 2019. The average reward seat increase posted by 6 airlines jumped nearly 36% during the same period, with a dramatic range of 9% to 153%. American swam against this current and registered a 21% decrease since 2019.

The 2025 US Domestic Reward Report released today by IdeaWorksCompany answers the question, “How costly is points redemption for the most popular basic reward type offered by top US airlines?” This year’s survey assesses six US airlines: Alaska, American, Delta, JetBlue, Southwest, and United.

“The accrual penalties placed on basic economy fares by most airlines has a crushing effect on the value of frequent flyer programs for everyday consumers,” said Jay Sorensen, President of IdeaWorksCompany and author of the report. “It directly conflicts with the objective to add members and to grow them into loyal customers who buy a bigger array of services.”

Paid Seating Becomes Most Prevalent Offer in the Booking Paths of 25 Airlines – Press Release

February 18, 2025

The 2025 Almanac of Airline Retail navigates booking complexity and is the first Pro Series Report by IdeaWorksCompany.

The standard boarding instruction airline passengers hear is now the #1 item they find in online ticket booking paths, according to the new Almanac of Airline Retail. Paid seating tops the list of a la carte items for sale at 25 leading global airlines – and it’s no wonder. Seat assignments are the most conspicuous aspect of flying today, outstripping the top item a decade ago, checked baggage.

The Almanac offers 52 pages of booking path (web, Apple, Android) data and analysis; here are some unique features associated with several of the airlines:

• Air Canada and Ryanair offer 5 bundled fares – the highest number found.
• Air France provides elite status points when its Flying Blue members contribute to carbon reduction efforts.
• Frontier and Spirit Airlines are tied for the biggest shopping carts. Each offers 10 a la carte items in their booking paths; Ryanair appears in 3rd place with 9.
• Frontier inserts a 30-day All-You-Can-Fly pass into its booking path.
• Korean Air was the only airline not offering bundled fares among the 25.
• Ryanair gives free seat assignments to kids with the Family Plus bundle.
• Spirit Airlines has consumers “toggle” between checking a bag or bringing a larger carry-on bag when buying the Go Savvy fare.
• Turkish Airlines offers the ability to block a middle seat for a fee.

The 2025 Almanac of Airline Retail is a 52-page Pro Series Report from IdeaWorksCompany and is designed for airline and travel industry professionals. It’s available for sale at the IdeaWorks store: https://ideaworkscompany.com/store/

Click here to view/download the graphic from page 1 of the press release as a JPG file.

Low Cost Meets Loyalty – Report

December 3, 2024

CarTrawler sponsored report reveals how ten top LCCs have embraced full-feature loyalty programs with partner networks, elite tiers, and co-branded credit cards. Low Cost Meets Loyalty was issued today as a 15-page report to analyze the FFPs of these ten airlines: Air Arabia, AirAsia, Azul, Frontier, GOL, IndiGo, JetBlue, Pegasus, Viva Aerobus, and Vueling. Decades ago airline executives predicted “low cost” and “loyalty” were an impossible combination.

Airline Ancillary Revenue Skyrockets to $148.4 Billion Worldwide for 2024 – Press Release

October 29, 2024

The CarTrawler worldwide estimate leaps nearly 26% above 2023 and nearly $39 billion above the pre-pandemic year of 2019. CarTrawler, the leading B2B provider of car rental and mobility solutions to the global travel industry, and IdeaWorksCompany, the foremost consultant on ancillary revenue, project airline ancillary revenue will increase to $148.4 billion worldwide for 2024, compared to $117.9 billion for 2023 and well above the previous $109.5 billion record in 2019. This CarTrawler Worldwide Estimate of Ancillary Revenue represents an increase largely built on 2023 passenger growth and increasing market share gains by low cost carriers.

Click here to view/download the graphic from page 1 of the press release as a JPG file.

Click here to view/download the graphic from page 2 of the press release as a JPG file.

2024 Big Book of Airline Data by IdeaWorksCompany – Report

October 22, 2024

IdeaWorksCompany releases 105-page report filled with passenger traffic, revenue, employment, and frequent flyer membership data for 239 carriers. The 2024 Big Book of Airline Data contains passenger traffic results for 168 primary airlines and 53 subsidiary airlines. The second portion contains revenue results for 136 primary airlines and 48 subsidiary airlines. The last airline sections provide membership data for 56 frequent flyer programs and employment totals for 120 carriers.

2024 CarTrawler Yearbook of Ancillary Revenue – Report

September 24, 2024

The 2024 edition of the CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany describes ancillary revenue activities and results for 68 airlines in 2023, revealing divergences in trends and providing an assessment of the industry as a whole. Here’s a guide to key features of the 2024 edition:

• 68 pages of individual airline listings arranged by global region (109 total pages).

• Alphabetical listing of 68 airlines from Aegean to Wizz Air, as a table, with total ancillary revenue in US dollars; and ancillary revenue as a percent of total airline revenue, and per passenger.

• Ancillary revenue surges above pre-pandemic levels: For 2023 the top 10 airline companies generated $54.1 billion, which is far in excess of the $38.4 billion result for the top 10 companies for the pre-pandemic year of 2019.

• Frequent flyer program revenue jumped: Total loyalty revenue for the top 10 programs was $32.2 billion, which was 18.6 % higher than 2022.

Of the 68 airlines in this Yearbook, 57 were included in last year’s edition, allowing for direct comparisons.

This report is now available for purchase in our store: https://ideaworkscompany.com/store/

Buckets of Cash: Airport Lounges Are Big Business, With Delta Sky Clubs Serving More Than 30 Million Guests Annually – Press Release

May 21, 2024

Airport Lounges Are the Hottest Ticket was issued today as an 18-page report to describe the economics of lounges and consumer fascination with these airport retreats. The following are key findings from the report:

Co-branded credit cards contribute 40% of guests for airline-operated lounges in the US, with just 5% of guests purchasing single visit passes.
Oneworld, SkyTeam, and Star Alliance together offer access to more than 2,300 lounges worldwide.
Delta’s Sky Clubs likely generated more than $772 million for the airline in 2023.
Capital One, which is set to add 300 million customers with its purchase of Discover Card, operates 50+ Capital One Cafes in urban settings, and airport lounges at Dallas/Ft. Worth, Denver, and Washington Dulles.

Airport Lounges Are the Hottest Ticket – Report

May 21, 2024

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 of travelers seeking premium experiences—so much so that overcrowding is a thorny issue, with social media documenting long lines in airport concourses. This is partly because higher fee co-branded credit cards now feature lounge access. Airlines are understandably excited by the revenue stream provided by these upscale sanctuaries, and new lounges are appearing in airports around the world. Airport Lounges Are the Hottest Ticket was issued today as an 18-page report to describe the economics of lounges and consumer fascination with these airport retreats.

Airline Loyalty Becomes a Multi-Billion Dollar Club – Report

April 16, 2024

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 shifted from sole reliance on behavioral loyalty, which relies upon a customer’s expectations for service and quality. Carriers now embrace transactional loyalty which emphasizes exchange relationships where something is given and something is received. This 16-page report advises caution about over-reliance on the co-branding bounty and suggests focusing more on the overall customer experience.

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

April 2, 2024

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 significantly since 2019 and, moreover, by 7 points above the rate of inflation for the same period.
• Reward payback for 2024, which measures the reward value provided per dollar spent on base fares, dropped overall more than half from 2019.
• Basic economy fares are disrupting the value provided by frequent flyer programs through policies which reduce or eliminate mileage/points accrual

This year’s survey assesses six US airlines and repeats the same methods used 5 years ago in 2019. The IdeaWorksCompany Reward Seat Availability Survey is based upon 600 booking and fare queries made by the IdeaWorksCompany at the websites of six frequent flyer programs to assess low-priced everyday reward seat availability. Lowest-price rewards are an important benefit for most members and the primary topic of this survey.

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