Reports

The latest from IdeaWorksCompany.

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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 1024 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.

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.

Seven Young Airlines Try Their Ancillary Revenue Wings – Report

March 19, 2024

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 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 these were much rarer. Branded fares provide the best ancillary revenue results and are based upon marketing research which has shown many consumers prefer a “middle choice” rather than opting for the lowest or highest price. Seven Young Airlines Try Their Ancillary Revenue Wings was issued today as a 16-page report. It provides six recommendations for boosting ancillary revenue through the branded fares method. The report describes how each carrier generates ancillary revenue by highlighting their booking path features and unique retail methods

Global Bag Fee Revenue Rises to $33.3 Billion – Press Release

February 20, 2024

CarTrawler 2023 Global Estimate of Baggage Fee Revenue reveals 15% increase from 2022 figure of $29 billion. 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 $117.9 billion worldwide for 2023. This CarTrawler Global Estimate of Baggage Fee Revenue identifies baggage as a $33.3 billion component and provides a summary of baggage fee policies for 20 top airlines.

Click here to download the graphic from the press release as a JPG file.

US Major Airlines Receive More Than $25 Billion in Ancillary Revenue from Co-Branded Cards – Press Release

January 23, 2024

CarTrawler sponsored research reveals US major airlines netted 32% of global ancillary revenue and nearly 68% of frequent flyer and commission-based revenue. Following further analysis on the 2023 CarTrawler Worldwide Estimate of Ancillary Revenue, IdeaWorksCompany found that US major airlines, defined as Alaska, American, Delta, Hawaiian, Southwest, and United, achieved ancillary revenue results far above their estimated 24% global traffic share. This is largely due to the outsize share of frequent flyer cash from their co-branded credit card programs. Traditional airlines, the largest category by number, came in at $42 billion, while low cost carriers (both categories) posted combined ancillary revenue of $38.1 billion, which represents a 2nd place position.

Click here to download the graphic from the press release as a JPG file.

Long Haul Premium: Upper Middle Class ─ for the Upper Middle Class – Report

December 5, 2023

Long Haul Premium: Upper Middle Class ─ for the Upper Middle Class was issued today as a 14-page report. It includes the results of a review of 20 leading global network carriers regarding their long haul premium economy cabins. The report describes the trends which support the potential for premium economy to someday deliver more profits than business class. “Premium” has become a post-pandemic buzzword for airlines, and for the travel industry overall. The word is liberally applied to a wide array of travel products, such as first and business class, airport lounges, luxury hotels, big SUV rental cars, and of course, premium economy.

Airline Ancillary Revenue Reaches Record $117.9 Billion Worldwide for 2023 – Press Release

October 31, 2023

The CarTrawler worldwide estimate posts 7.7% increase above the previous record of $109.5 billion in 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 $117.9 billion worldwide for 2023, compared to $102.8 billion for 2022 and well above the previous $109.5 billion record in 2019. The 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 download the two graphics from the press release as a JPG file.

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