When Airlines Should & Shouldn’t Charge For Something


Spirit Airlines Airbus 319-132 N506NK

Image via Wikipedia

Here’s a thought, if more than 75% of passengers purchase an ancillary revenue item, it should be included in the ticket price.

If 75% or more of people on a flight buy a meal — meals should be included in the ticket price.

Airlines should have a threshold in lieu of what seems to be a “what can we charge for” and “how much will we get away with” mentality.

Not all ancillary sources are bad. There are the “good” kind of ancillary revenue like day of departure upgrades and premium seating — which airlines need to focus on — and the “bad” kind like baggage fees, food, etc.

Airlines should get creative on “good” ancillary revenue — ie: up selling and cross selling.

In the mean time, ancillary fees are going up up and up!

There are fees yet to be introduced held up purely because the reservation systems the airlines haven’t been able to keep up with the ways airlines intend on charging passengers. The fees we already pay are going up.

JetBlue‘s executive vice president and CFO, Ed Barnes, told analysts earlier this month that the airline has lost some potential ancillary revenue during the past quarter by waiving certain fees in this year’s transition to Sabre.” – Travel Weekly

Why is ancillary revenue growing? It works!

Ancillary revenue is a significant opportunity for Continental,” he said. “And United has done a very good job. There are many issues related to rolling out our ancillary revenue products. There are IT issues, there are global distribution system issues, there are timing issues in terms of where it is in the chain of purchase, whether it’s a prepurchase or day of departure or post-purchase.” According to Travel Weekly,

When Will All This Stop?

Not anytime soon barring an airline charging for something we really won’t stand for (ie: bathrooms, to charge for sitting down on the plane versus standing up..).

Who’s Bucking the Trend?

Southwest Airlines which maintains no baggage fees.

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This entry was posted in Travel Trade, Travellers and tagged , , , , , , , by Abrar. Bookmark the permalink.

About Abrar

Welcome to the narration of whatever is piquing my interest. I spent the first 6 years of my professional life in software development and project management at a start-up, a 10 person consulting company and ultimately reporting to the C.I.O. for a Fortune 150 conglomerate. I've spent the last 9 years in travel the travel industry: 2 years in managing travel technology projects (the systems travelers use like booking engines and fare databases) and the remaining 7 years in business development at an online travel agency specializing in international travel. I truly enjoyed growing from 2 people and near zero sales to a multi-national travel agency with an offshore call center, deploying an overseas sales office, securing key corporate clients, implementing strategic relationships within the travel industry and embracing technology as best we could afford to do. I stepped away from a day to day role in 2006 and have since specialized in advising companies in and outside of the travel industry on what to do and what not to do as they expand. My personal interests include international travel, reading books and spending time with family and friends. I love business, I love travel and I love technology.

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