IdeaWorksCompany can create a project proposal for any of the areas listed on the Expertise page, such as enhancing frequent flier programs or providing a bottom line boost through ancillary revenue activities. Clients may also choose from the Consulting Project Packages listed below. Please click on the link to download a full project description.
Have new products assessed before implementation and get existing services revenue optimized. The intent is to quickly provide an independent opinion on products that are in development, about to be released, or are underperforming. The two-day process occurs on-site with a confidential review of five ancillary revenue initiate is selected by you. The emphasis is on speed with minimal intrusion into staff time.
Jay Sorensen will meet with the leader responsible for each product to conduct one-hour interviews during the first day; this is repeated for all five products. On day two, assessment is written for each product: 1) How other airlines have created similar solutions, 2) likely passenger reactions, 3) pricing recommendations, 4) introduction and promotional strategy, 5) operational concerns, and 6) overall recommendations. The report is provided at the close of day to with time reserved to discuss the findings. This component is best paired with a preceding Master Class.
How well are your à la carte services services promoted and delivered? Jay Sorensen behaves like a consumer for this two-day exercise by booking flights through online and mobile paths, noting follow-up messaging, and flying multiple segments to observe onboard activities. One day is allocated for two or three flight segments with unobtrusive observations made of airport and cabin procedures related to ancillary revenue.
The second day is completed at your headquarters, which provides a quick access for any questions that may arise. During this day, a three-page summary is completed with commentary, observations, and advice for the following areas: 1) design and presentation of fare products, 2) ancillary revenue integration within the online booking path, 3) ancillary revenue integration within the mobile app, 4) à la carte service delivery and promotion in the airport, 5) à la carte service delivery and promotion in the aircraft, and 6) organizational design and culture. This component is best paired with a preceding Master Class.
This 2-3 month project delivers a business plan for airlines starting their ancillary revenue program or seeking to review an existing collection of à la carte services. The process begins with Jay Sorensen spending four days on site to conduct executive interviews, collect financial data, and observe airline operations. This ensures product development that fits the capabilities of the airline, meets the needs of its customers, and delivers the financial results desired. The plan can include up to six ancillary revenue, à la carte, or branded fare services and products.
This project concludes with the delivery of a 40+ page plan which covers the following:
- Introduction and commentary (Industry trends, competitor matrix, overall strategy)
- Developing your carrier's ancillary revenue capabilities (corporate culture, administrative design, staffing recommendations)
- Summary of ancillary revenue activity table (ranked by revenue, ease of implementation, and customer acceptance)
- 7-point ancillary revenue product benchmark, design, and projections for six ancillary services and products.
Airlines enjoy greater revenue success when they become productive retailers rather than passive shopkeepers. IdeaWorksCompany offers a one-price solution for carriers seeking to build ancillary revenue. This package begins with a week of on-site consulting seminars, interviews, and assessment to support three primary ancillary revenue areas: 1) commission-based products at the website, 2) travel-related a la carte services, and 3) onboard a la carte features.
The key deliverable for the project is a 35- to 40-page customized assessment of the revenue opportunity provided by 10 individual ancillary revenue activities. The Ancillary Revenue Strategy Report provides a business plan for the implementation or improvement of ancillary revenue initiatives. The Report consists of the following sections:
This section includes a summary of report recommendations, description of the methods used to gather information, review of organizational designs used by other airlines, and a suggested organizational design for the client.
Ancillary Revenue Matrix
This section lists 8 ancillary revenue activities under the categories of a la carte features, commission-based products, frequent flier activities, and advertising / miscellaneous. These would be chosen by the client at the conclusion of the week of on-site activities. Some of the activities may be currently provided by the client, and the rest will represent new opportunities for the airline to consider. Each will be color coded with an “at a glance” assessment to designate revenue potential, implementation effort, and customer impact.
Individual Ancillary Revenue
In this section, the individual ancillary revenue items are described in 2- to 4-page sections which include the following information: a) Summary of the activity, b) Benchmark activity and revenue examples from other airlines, c) Description of service design and instructions for implementation, d) Operational, product, and marketing considerations, and e) Revenue projections for the airline.
The Ancillary Revenue Strategy Report is delivered to the client 2 to 3 months after the project begins. The project may conclude with an optional on-site presentation of the assessment and recommendations to senior management. Additional support for implementation and ongoing assistance can be added to this project.
IdeaWorksCompany offers a one-price solution for an airline seeking to evaluate a frequent flier program opportunity. A total of 10 modules are offered to provide support for all areas of frequent flier program planning, procedures development, and program launch.
Initial Evaluation – Module 1
This module focuses on the carrier’s unique travel product and the expectations of its guests. Numerous face-to-face interviews with the carrier’s executives provide the consultant a thorough background on the company and its products, and allow client executives to learn more about loyalty marketing. The week of activity will be summarized in a 4-page report. The Initial Evaluation Report will provide an outline of the program.
Business Plan – Module 2
This module is offered as a separate project to begin the process of building a frequent flier program through the development of a comprehensive business plan document. This project will create a 25- to 30-page Frequent Flier Business Plan that will outline the design of a customized loyalty program for the client.
Procedures Development and Program Launch – Modules 3 through 10
These modules provide further program development, create operational systems, and assist with program launch. The component approach provides maximum flexibility for the client; any or all of the modules offered may be requested.
IdeaWorksCompany can also determine mileage/kilometer/point values for transactions involving frequent flier programs, wholly-owned subsidiaries, and program partners.