Reports

Points, Pillows and Porsches: Hotel and Car Rewards at the Top 30 Airlines
It’s no surprise the largest loyalty programs – American AAdvantage, Delta SkyMiles, and United MileagePlus – offer car rental and hotel rewards.  The biggest surprise is posed by the high profile global carriers that don’t, such as Air China, Turkish Airways, and US Airways.  Reward activity, survey results, and the prevalence of broad-spectrum rewards indicate they have become a “must have” amenity for frequent flier programs wishing to compete on a global scale.  The report describes how better airline brands engage their top customers in a deeper relationship by going far beyond a basic selection of reward tickets and upgrade rewards.

VIP for a Fee: Airport Services Designed for High Value Customers
VIP treatment, such as early boarding, bonus miles, fast track screening, and first class upgrades, has proven to produce the revenue payback eagerly desired by airline management.  The eleven airlines reviewed in this report (Air Asia, Air France, American, Delta, Emirates, Etihad, Hawaiian, LOT Polish, Lufthansa, Qatar, and Virgin Atlantic) provide personalized one-on-one airport service that often stretches from curbside to the aircraft door.  The report describes how these airlines allow consumers to buy the package of goodies once reserved for travelers having gold and platinum status.

Economy Class Meals Get an a la Carte Upgrade
Air France, Austrian, Condor, Hawaiian, KLM, and US Airways hope customers will forego free and pay for better food.  Consumers and pundits might be surprised, but many managers at traditional airlines don’t embrace the zen of frugal inflight fare.  It’s more glamorous (and easier) to provide fine dining free of charge.  But it’s economically infeasible.  The latest report from IdeaWorksCompany analyzes the efforts by six airlines to create a positive perception of their economy class product by selling upgraded meals and generating some ancillary revenue at the same time.

Premium Class Rewards Provide Best Value for Frequent Flier Members
One of the recurring debates about the booming loyalty marketing industry is whether rewards provide notable value . . . and which rewards are the most valuable.  To answer this, IdeaWorksCompany conducted booking research using United’s MileagePlus program (largest in the world) to determine which rewards provide members the greatest dollar value.  The answer was clear:  Booking first class travel to Hawaii, Europe or Asia provides best value for redeeming frequent flier miles.

Bag Fees Sprout this Spring in Asia, Europe, and America
The latest report from IdeaWorksCompany describes how the pace is quickening in 2013 for a la carte fees and optional extras to become an everyday component of airline pricing.  The Government of India has approved a la carte pricing; Air France, British Airways, and KLM introduced bag charges for intra-Europe flights; and a third US airline has added the controversial fee for carry-on bags.

Choice and Creativity.
Carriers Build Ancillary Revenue by Empowering a Consumer’s Right to Choose.  Air New Zealand, Air Canada, and Wizz Air use three contrasting retail methods that can boost revenue more than 20%.  IdeaWorksCompany reveals how the ancillary revenue revolution is focusing less on product development and more on retail methods.

Card-Carrying Generosity.
IdeaWorksCompany reviewed the credit cards offered by the five largest US airlines, such as American and United, and compared these to the independent travel reward cards offered by banks such as Chase and Citi.  This report finds American Express, Barclays, Chase, Citibank and Southwest are most rewarding, while American, Delta, US Airways, and United cards offer travel perks but higher reward thresholds.

Points, Pillows and Porsches: Hotel and Car Rewards at the Top 30 Airlines
Car and hotel rewards are now offered by every major frequent flier program in North America and Europe with the exception of Turkish Airlines and US Airways.  Of the 30 frequent flier programs reviewed worldwide, 20 offer hotel rewards and 17 provide car rental rewards.

Profit From Innovation: Benefits of Ancillary Revenue Reach All Over the World
Ancillary revenue innovators include AirAsia, KLM, and Virgin America, and global practitioners include Disney, Norwegian Cruise Line, and Starbucks.

Curiouser and Curiouser: the Wonderland of Changes Wrought by BA
Has British Airways fallen into a rabbit hole or embarked on an adventure of change?