2010 amadeus guide to ancillary revenue by ideaworks, page 1 revenue guide 201… · 2010 amadeus...
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2010 Amadeus Guide to Ancillary Revenue by IdeaWorks, Page 1
2010 Amadeus Guide to Ancillary Revenue by IdeaWorks, Page 2
Table of Contents
Welcome Aboard the Third Ancillary Revenue Guide ......................................................................................... 8
Selections from a Global a la Carte Menu ........................................................................................................... 11
Long Live the Revolution ..................................................................................................................................... 11
Something New or Just Another Fee ................................................................................................................ 13
Managing Ancillary Revenue ................................................................................................................................ 16
Annual Pre-Paid Plans and Passenger Loyalty ................................................................................................. 18
Frequent Flier Programs Finally Participate ..................................................................................................... 20
Food is the Next Frontier ................................................................................................................................... 21
Test, Change, and Measure .................................................................................................................................. 25
The Revolution Continues .................................................................................................................................. 27
Discovering New Worlds of Onboard Merchandising ...................................................................................... 28
The Corps of Discovery ...................................................................................................................................... 28
Old World Catering Traditions ........................................................................................................................... 29
The State of Catering Today................................................................................................................................ 30
Exploring Bold New Worlds ............................................................................................................................... 31
Building the Restaurant Check ........................................................................................................................... 32
Boosting Revenue by Breaking Routines .......................................................................................................... 34
Selling by Making it Easy to Buy ......................................................................................................................... 37
Menus, M&Ms, and Offering More ..................................................................................................................... 39
Chart Your Own Course ..................................................................................................................................... 41
Worldwide Financial Statistics from Leading Airlines ........................................................................................ 44
Airlines Posting Ancillary Revenue Results ...................................................................................................... 46
Europe and Russia ................................................................................................................................................. 50
The Americas ......................................................................................................................................................... 64
Asia and the South Pacific ................................................................................................................................... 84
Middle East and Africa .......................................................................................................................................... 90
Currency Exchange Rates Used for the Worldwide Statistics .................................................................... 93
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AirAsia X Stretches a la Carte to Fit the Globe ................................................................................................ 94
Low Cost Long-Haul Becomes a Success ........................................................................................................ 94
London to Kuala Lumpur and Beyond .............................................................................................................. 95
AirAsia X is an a la Carte Hybrid ...................................................................................................................... 96
Going Upscale in a Big Way ................................................................................................................................ 98
AirAsia X Defines Long-Haul a la Carte .......................................................................................................... 99
More a la Carte All Over the World ............................................................................................................... 100
How Ryanair is Trying to Change the World ..................................................................................................... 101
The Psychology of Michael O‘Leary ............................................................................................................... 101
Love the Fare, Hate the Airline ........................................................................................................................ 103
The Ryanair Way of Passenger Behavior ........................................................................................................ 105
Sell, Sell, Sell .......................................................................................................................................................... 107
Lowest Price Wins .............................................................................................................................................. 109
Stories from the Field ............................................................................................................................................. 110
Peter Gerstle ‒ easyJet ...................................................................................................................................... 111
Azran Osman-Rani ‒ AirAsia X ....................................................................................................................... 112
Damien Paries ‒ Corsairfly ............................................................................................................................... 113
Michel Teychené ‒ Air France/KLM ................................................................................................................. 114
Pia Viljaniemi ‒ Finnair ........................................................................................................................................ 115
The Amadeus Guide to Ancillary Revenue by IdeaWorks
Published by the IdeaWorks Company
Shorewood, Wisconsin, USA
IdeaWorksCompany.com
October 2010
2010 Amadeus Guide to Ancillary Revenue by IdeaWorks, Page 4
About Jay Sorensen, Writer of the Report
Jay Sorensen‘s research and reports have made him a
leading authority on frequent flier program
development and the ancillary revenue movement.
For 2010 he is a keynote speaker at Mega Event 2010
(FFP/ARAC) the annual worldwide conference for
ancillary revenue and frequent flier programs. This
event, developed by Airline Information, has been a
resounding success for many years. More than 300
executives representing 75 airlines from all over the
world are expected to attend the October 2010
event in Montreal. In addition, he will also speak on
the topic of ―Moving to Merchandise Methods in the
Cabin‖ at the global Amadeus airline conference ―Horizons‖ which will be held in San Francisco
October 2010. The 2010 Amadeus Guide to
Ancillary Revenue by IdeaWorks is the third edition
of this guide.
Mr. Sorensen is a veteran management professional with 26 years experience in product, partnership,
and marketing development. As president of the IdeaWorks consulting firm, he has enhanced the
generation of airline revenue, started loyalty programs and co-branded credit cards, developed
products in the service sector, and helped start airlines and other travel companies. His career
includes 13 years at Midwest Airlines where he was responsible for marketing, sales, customer
service, product development, operations, planning, financial analysis and budgeting. His favorite
activities are hiking, exploring and camping in US national parks with his family.
About Eric Lucas, Editor of the Report
Eric Lucas is an international travel and business writer and editor whose
work appears in the Los Angeles Times, Michelin travel guides, MSN/Bing
Travel, Alaska Airlines Magazine, Westways Magazine and numerous other
publications. Founding editor of Midwest Airlines Magazine, he is the
author of five books, including the 2009 Michelin British Columbia Green
Guide. Eric has followed and written about the travel industry for more
than 20 years. He lives in Seattle‘s Ballard neighborhood, where he grows
and sells organic garlic; visit him online at www.TrailNot4Sissies.com.
Jay Sorensen with sons Anton and Aleksei in Mount Rainier National Park in Washington.
Eric, at his favorite summer
retreat, Steens Mountain, Oregon.
2010 Amadeus Guide to Ancillary Revenue by IdeaWorks, Page 5
Disclosure to Readers of this Guide:
IdeaWorks makes every effort to ensure the quality of the information in this guide. Before relying on
the information, you should obtain any appropriate professional advice relevant to your particular
circumstances. IdeaWorks cannot guarantee, and assumes no legal liability or responsibility for, the
accuracy, currency or completeness of the information.
Terms of Use for this Guide:
You may not disseminate any portion of the guide, to parties other than the client company, without
the prior consent of IdeaWorks. This includes distribution through electronic means, including mail
lists or electronic bulletin boards. Except as expressly permitted in this Terms of Use, the guide may
not be reproduced, transmitted, or distributed without permission.
IdeaWorks provides the guide and services ―as is‖ and without any warranty, or condition, express,
implied or statutory. IdeaWorks specifically disclaims any implied warranty of title, merchantability,
fitness for a particular purpose, and non-infringement. In no event shall IdeaWorks be liable for lost
profits or any special, incidental, or consequential damages arising out of or in connection with the
guide (however arising, including negligence). Distribution of this guide is protected by the Economic
Espionage Act of 1996 of the United States and the data protection laws of Europe.
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