Monday, December 28, 2015

Delta Air Lines Is 2015 IdeaWorksCompany revenue innovation champ

IdeaWorksCompany continues a year-end tradition by identifying airlines that have shown the greatest prowess in ancillary revenue, a la carte pricing, and loyalty marketing. 

“Throughout 2015, we assessed the top ancillary revenue producing airlines and the most generous frequent flier programs, and issued reports that described the industry’s service innovation and product development; and offered practical advice for airline executives,” said a release from the Wisconsin-based company. 

The culmination of this work is the Airline Ancillary Revenue and Loyalty Guide for 2015. The Guide includes every published report and survey issued by IdeaWorksCompany during the year. IdeaWorksCompany has found that a select group of airlines clearly stood apart in their quest for new sources of revenue success. 

At the top of the list is Delta Air Lines. In 2015 Delta began offering a new product called Delta Comfort+. For a modest upgrade charge, passengers get priority boarding, dedicated overhead bin space, extra legroom, superior snacks on longer flights, free drinks such as beer and wine, and complimentary premium entertainment. 

“This ancillary revenue generator has been a huge financial success for Delta; IdeaWorksCompany estimates the carrier sells more than 45,000 Comfort+ seats a day,” said a release IdeaWorksCompany.

A program at Gatwick Airport that allows passengers to purchase what looks very much like an insurance policy; booking them on the next available flight at no cost if an inbound flight is delayed or cancelled and a passenger misses and outbound flight. Hotel and meal costs may also be added. SWISS International is offering a new program of branded fares called Light, Classic and Flex. JetBlue Airways has improved its inflight purchasing with Apple Pay and added cabin software that helps crew break language barriers with passengers. Rounding out the top five is AirAsia, which now offers a smart phone chat program with the help of its supplier, Tune Box.

A full look at the top revenue enhancing programs can be found on the IdeaWorksCompany website.

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