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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.

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Booking Path Magic Converts Consumers – Report

IdeaWorksCompany identifies examples from easyJet, Jet2.com, Jetstar, Ryanair, Singapore, and Wizz Air which reveal responsive retailing methods at websites.  Cashiers and clerks just take customer orders. True salespeople identify the individual needs of a customer, and do their best to provide a solution.  This is something the six airlines featured in the latest report sponsored by global travel tech provider CarTrawler already know.  The 12-page Booking Path Magic Converts Consumers report describes how the carriers in the report are enhancing the capabilities of the booking path by making them more responsive to consumers.

US & Canada Airlines Have $39 Billion of Ancillary Revenue, Including More Than $23 Billion from Co-Branded Cards – Press Release

CarTrawler sponsored research reveals US & Canada airlines grabbed 38.3% of global ancillary revenue and 66.5% of frequent flyer and commission-based revenue.  The US & Canada edged ahead with a larger share of global ancillary revenue from last year’s result of 37.1%, with a robust gain of nearly $15 billion. The recovery of long-haul traffic for Europe’s airlines helped the region replace Asia/Pacific for the 2nd slot with a $9.7 billion jump over the 2021 estimate. This year’s release includes a first-ever estimate of the global revenue provided by frequent flyer programs and commission-based activities. At $36 billion, this new statistic represents a meaningful 35% share of the $102.8 billion ancillary revenue estimate for 2022.

World’s Newest Airlines Embrace Ancillary Revenue at First Flight – Report

New airlines compete by identifying customers who are not well served by larger and established carriers.  This is the secret to surviving as a start-up airline: find an underserved market and apply all the youthful passion and nimble moves you can muster.  That’s how these 10 low cost carriers hope to flourish in a post-pandemic era: Air Premia, Akasa Air, Avelo Airlines, Breeze Airways, Flyr, LIFT, Lynx Air, Norse, PLAY, and Vietravel Airlines.

All operate as low cost carriers, as this is the prevailing model of today’s airline industry.  Ancillary revenue is at the core of this movement because it honors customer choice and delivers the amazing alchemy of low fares and more revenue.  World’s Newest Airlines Embrace Ancillary Revenue at First Flight is a 13-page report sponsored by global travel tech provider CarTrawler and reviews the ancillary revenue efforts of ten airlines that leapt through challenging hurdles during the pandemic.

Airline Ancillary Revenue Nears Pre-Pandemic Level with a 56% Increase to $102.8 Billion for 2022 – Press Release

The CarTrawler global estimate reveals the “double benefit” of ancillary revenue; it provides needed income for airlines and delivers overall lower costs for consumers.  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 $102.8 billion worldwide in 2022, compared to $65.8 billion in 2021 and the $109.5 billion record of 2019. The CarTrawler Worldwide Estimate of Ancillary Revenue represents an increase built upon a 2022 passenger jump, with consumer support for a la carte services and co-branded credit cards showing gains.  The ancillary revenue method represents a powerful airline retail system. The base fare will fluctuate as determined by supply and demand, while the ancillary revenue components provide a layer of stability in the topsy-turvy world of a global business.  The press release offers six consumer-oriented strategies which represent best practices for airline practitioners.  In addition, ancillary revenue data from the last 10 years is provided in two tables in the press release.

Click here to download the two graphics from the press release (free to use).

2022 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany – Report

The 2022 edition of the CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany, released today, describes the 2021 ancillary revenue activities and results for 75 airlines. The gradual waning of the pandemic during 2021 – with passenger traffic improving 27.8% above 2020 – lifted ancillary revenue results for all categories of airlines, all over the world.  The pandemic has compelled airlines to become better at generating ancillary revenue. The “High Performing LCC” category includes Frontier, Jet2.com, Jetstar, and Volaris. The “Other LCC” category (defined as having a rate under 16%) consists of carriers such as AirBaltic, Cebu Pacific, and FlyDubai. The “Other Carrier” category has the largest number of airlines, 32 out of the 75 in the yearbook, and includes traditional carriers such as Aeromexico, Finnair, and Kenya Airways. The US Majors are: Alaska Air Group, American, Delta, Southwest, and United.

The Yearbook of Ancillary Revenue is now available for sale in the store.

New Big Book of Travel Data Reveals $867 Billion in Revenue from Airlines, Hotels, Car Rental & OTAs – Press Release

Allianz Partners, a global leader in travel protection and consumer specialty insurance, and IdeaWorksCompany, the foremost consultant on ancillary revenue, have released the first edition of The Allianz Partners Big Book of Travel Data by IdeaWorksCompany.  This new publication, which expands on IdeaWorks’ former Big Book of Airline Data, provides a world of industry data for airlines, hotel groups, car rental companies, and online travel agencies, and is collated by alphabetical order, size, region, and more.  The 110-page “Big Book” is available free of charge via download at AllianzPartners.com and IdeaWorksCompany.com. The compilation of data allows for interesting comparisons; here is the list of revenue leaders in each category in 2021:

• $78 billion for OTAs: Trip.com Group (gross bookings). China-based company operates the Ctrip, Skyscanner, Trip.com, and Qunar websites.
• $39.7 billion for hotels: Marriott International (estimated room revenue).
• $29.9 billion for airlines: American Airlines (company revenue).
• $23.9 billion for car rental: Enterprise Holdings (company revenue). The company operates the Alamo, Enterprise, and National brands.

The Big Book of Travel Data is now available for sale in the store.

2022 Allianz Partners Big Book of Travel Data – Report

Allianz Partners and IdeaWorksCompany release report filled with data from 122 airlines, 174 hotel brands, leading car rental companies and OTAs.  Allianz Partners, a global leader in travel protection and consumer specialty insurance, and IdeaWorksCompany, the foremost consultant on ancillary revenue, have released the first edition of The Allianz Partners Big Book of Travel Data by IdeaWorksCompany.  This new publication, which expands on IdeaWorks’ former Big Book of Airline Data, provides a world of industry data for airlines, hotel groups, car rental companies, and online travel agencies, and is collated by alphabetical order, size, region, and more.

The Big Book of Travel Data is now available for sale in the store.

More Airlines Adopt Carry-On Fees – Press Release

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.

Baggage Belts Deliver Cash for Smart Airlines – Report

This CarTrawler sponsored analysis reviews the baggage fee methods embraced by 18 carriers leading the pack.  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.  Smart airline management teams also acknowledge new baggage services must improve the journey for passengers.  Baggage Belts Deliver Cash for Smart Airlines is sponsored by global travel tech provider CarTrawler and encourages airlines to build better baggage businesses.

Global Baggage Fee Revenue Jumps to $20.9 Billion – Press Release

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.

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