Tuesday, December 14, 2010

Ancillary Fees Windfall 2010: $3.4 Billion on Baggage

U.S. Airlines are on track to reap in excess of $3.4 billion in 2010 on baggage fees alone.

With the exception of Southwest, airlines have found the way to nickel and dime their way to profitability by passing on costs to the traveler such as "fuel surcharge", and keep dreaming up a variety of fees to charge. The baggage fee is the biggest money maker for airlines, followed by a sundry of items such as "aisle seats", "exit seats", "extra legroom seats", "economy plus seats", "upgrade fees and co-payments", "snack packs" and "blanket/pillow combo" fees.

The trend is expected to continue in 2011 and beyond as revenue management of most airlines keep "introducing" more fees...

www.premieretravel.com

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