Reports

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.

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

November 15, 2022

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

September 27, 2022

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 2022 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany is a free-of-charge 145-page report sponsored by CarTrawler.

2022 Allianz Partners Big Book of Travel Data – Report

August 16, 2022

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 110-page “Big Book” is available free of charge via download at AllianzPartners.com and IdeaWorksCompany.com.

Please note:  The file available on the website reflects a data correction; see page 4 of the Big Book (19 August 2022).

Baggage Belts Deliver Cash for Smart Airlines – Report

May 24, 2022

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.

The Pandemic, Technology, and the Environment Are Changing Airline Business Travel – Report

March 29, 2022

CarTrawler-sponsored analysis describes how the pandemic, technology, and environmental concerns have changed airline business travel. It could be a year in which the airline industry recovers some of the profits lost during the pandemic. That’s the picture for leisure travel, especially in the burgeoning premium leisure sector. The recovery of business travel is complex and largely unwritten. Online meeting technology continues to march ahead, company employees are still working from home, corporations are setting carbon reductions tied to business travel, and the airline industry still struggles to find firmer footing. Innovation and resilience saved airlines during the pandemic, and these same traits will allow airlines to adapt to the changes wrought by new communication technologies and carbon emission concerns. The Pandemic, Technology, and the Environment Are Changing Airline Business Travel is sponsored by global travel tech provider CarTrawler and focuses on the new category of premium leisure travel as a market offering tremendous potential to fill the business travel gaps that may persist.

Advice to Airline Managers – Don’t be Paralyzed by the 2022 Consumer Challenge – Report

March 1, 2022

Advice to Airline Managers – Don’t be Paralyzed by the 2022 Consumer Challenge is sponsored by global travel tech provider CarTrawler and was released today. The report includes a chart listing the Covid era change and cancellation policies for 25 leading global network and low cost carriers. The 14-page report by IdeaWorksCompany is a call to action to help savvy airlines navigate a path to better serve consumers and improve financial sustainability during this period:

1. Protect consumers from today’s travel uncertainty. For instance, Air Canada has no expiration date for Covid change and cancellation protections.
2. Improve clarity of fare restrictions. Low cost carriers typically do a better job than traditional airlines of presenting fare conditions.
3. Allow friends and families to pool frequent flyer points. Singapore Airlines now allows family members to aggregate frequent flyer miles.
4. Promote flexible holiday packages. EasyJet holidays provides a good example of a thorough and well-conceived policy for consumers.
5. Be more generous and kind to your consumers. Icelandair will fly passengers delayed by mandatory self-isolation home at no additional expense.

The Airline Industry Has Changed – Convenience and Predictability Are Missing – Report

November 30, 2021

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.  This 15-page report describes how the industry has changed and provides ideas on how revenue can be increased and more traffic can be captured.  Many of the habits formed by travelers during the pandemic will be enduring and are reflected in the perspectives covered in this report:  1. Network airlines will focus on leisure travel.  2. Business will be more a la carte and premium economy will grow.  3. Airlines will be enticed by branded fares and dynamic pricing.  4. More effort will be made to improve buy-on-board food. 5. Carriers need to provide protection from uncertainty. 6. Border closures are here to stay.

Airline Ancillary Revenue Begins Recovery with a 13% Increase to $65.8 Billion for 2021 – Press Release

November 9, 2021

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.

Click here to download the graphics from page one and two of the press release (free to use).

2021 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany – Report

September 14, 2021

Fifty airlines post higher year-over-year results for “ancillary revenue as a percent of total revenue” in the 2021 edition of the CarTrawler Yearbook of Ancillary Revenue.  The 136-page yearbook describes the 2020 ancillary revenue activities and results for 75 airlines.  This year’s 75 airlines represent a very robust 68.9% of IATA’s worldwide airline industry passenger traffic for 2020. The list is a collection of the world’s best performing ancillary revenue airlines. Over all, ancillary revenue as a percentage of total revenue among the 75 airlines was 14.6% for 2020, which is a noteworthy increase above the 12.1% for 2019.  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 report may be purchased by clicking this link.

 

Datalex Big Book of Airline Data by IdeaWorksCompany – Report

August 12, 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.  The first part of the Big Book contains passenger traffic results for 180 airlines. The second part of the report contains revenue results for 152 airlines. The final section provides membership data disclosed by 42 frequent flyer programs.  The 78-page “Big Book” is available free of charge via download at Datalex.com and IdeaworksCompany.com.

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