News & Research

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.

“Change Fees Will Become Even More Unpopular” is One of 8 Ways Travel Will Be Different a Few Months from Now – Press Release

April 14, 2020

The pandemic will affect the airline business for years to come, but travel will return because it is an essential element of being human. There are no “opportunities” during this time of trial but we can learn from past economic challenges and global events that have tested the travel industry. This report anticipates the changes that will occur as consumers return to airlines, hotels, and car hire companies.

Flight Plan 2020: 8 Ways Travel Will Be Different a Few Months from Now – Report

April 14, 2020

CarTrawler-sponsored report focuses on post-virus consumer behavior and how airlines can best serve a travel economy in recovery.  This report anticipates the changes that will occur as consumers return to airlines, hotels, and car hire companies.  This report anticipates the changes that will occur as consumers return to airlines, hotels, and car hire companies.  Here are some of the findings from the report:

  • Southwest Airlines is among the most profitable airlines in the world, and has never charged change or cancellation fees. Making profits without these fees is possible.
  • Weaker airlines will merge with others or simply disappear. Some hotels will close and be repurposed for other uses, or will sit empty waiting for travel to recover.
  • “Safer close to home” will most certainly define the near-term psychology of leisure travel. Travel by automobile, passenger rail, and shorter flights will see the first indication of renewed demand, and this may occur in August 2020.
  • Travelers will equate “rural and outdoors” with good health, and “crowds and public spaces” with higher risk.
  • Protection against disease will become an expectation in the same manner that protection from terrorism has been built into the travel system.

My love letter to the airline industry during this time of trouble

March 31, 2020

Jay Sorensen’s letter to the global airline community:  for those at the ticket counter, at the gate, on the plane, on the ramp, in the hangar, and at corporate headquarters.

European Airlines Lead a la Carte Revenue Estimate at $31.5 Billion with Asian Carriers 2nd at $21.1 Billion – Press Release

February 18, 2020

The birthplace of airline a la carte revenue—Europe—continues to lead the globe in annual growth for this key sales component. And the world’s fastest-growing air travel market, Asia, is not far behind.  IdeaWorksCompany, the foremost consultancy on airline ancillary revenues, and CarTrawler, the leading technology platform providing end to end transport solutions for online businesses, recently estimated airline a la carte revenue at $75.6 billion worldwide for 2019.  The CarTrawler Global Statistics of a la Carte Revenue adds regional details and 2015 comparisons to the figures from the earlier November 2019 release.

November 19, 2019 – Press Release

November 19, 2019

Airline Ancillary Revenue Projected to Leap to $109.5 Billion Worldwide in 2019
IdeaWorksCompany, the foremost consultant on ancillary revenue, and CarTrawler, the leading provider of online car rental distribution systems, project airline ancillary revenue will reach $109.5 billion worldwide in 2019, compared to $92.9 billion in 2018. The CarTrawler Worldwide Estimate of Ancillary Revenue represents an almost fivefold increase from the 2010 figure of $22.6 billion, which was the first annual ancillary revenue estimate.
Click here for CarTrawler Ancillary Revenue Estimate 2019 Graphic (JPG file)

November 7, 2019 – Keynote Presentation

November 7, 2019

European Aviation Conference, Jay Sorensen Keynote Presentation
Jay Sorensen was the keynote presenter for the 2019 European Aviation Conference which was held November 7/8, 2019 in Vienna at the University of Vienna, School of Law.  Since 2012, the European Aviation Conference (EAC) has offered a unique meeting place for industry stakeholders, researchers and government officials from across Europe and around the world to discuss timely, policy-relevant issues in aviation with the goal of the seeking insights from best practices and practical solutions to challenges facing the aviation industry.  Click below to also view the presentation for the panel discussion which followed the keynote:
European Aviation Conference, Jay Sorensen Panel Slides

 

October 31, 2019

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

October 28, 2019

Why Are Airline Websites So Bad at Inspiring Travel?
Skift
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.

October 15, 2019 – Press Release

October 15, 2019

Becoming the “Amazon of Travel” Should Not Be a Goal for Airlines
CarTrawler-sponsored analysis shows airlines how to stop treating air travel as a commodity and dominate the travel planning process.  It’s hard to believe we are nearing the 24th anniversary of airline websites – Alaska Airlines sold the first air travel ticket online in December 1995. Fast forward to today, airline websites still promote two core functions: transactions and information retrieval. At present, airline websites are little more than cash registers surrounded by shelves of merchandise. This report encourages airlines to move from a transaction focus to become robust retailers of travel.

October 15, 2019 – Report

October 15, 2019

Finding the Path to Fix Airline Retail
It’s hard to believe we are nearing the 24th anniversary of airline websites – Alaska Airlines sold the first air travel ticket online in December 1995. Fast forward to today, airline websites still promote two core functions: transactions and information retrieval. At present, airline websites are little more than cash registers surrounded by shelves of merchandise. This report encourages airlines to move from a transaction focus to become robust retailers of travel.

A podcast of this report has been recorded, and is available at Spotify and Google Podcasts.  Click this link to listen on Spotify.

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