Baggage Fees Add Up

The next time you pay to have a bag checked; smile you are part of the billion-dollar ancillary revenue industry. Oh yes, it is an industry. There is even a yearly Ancillary Revenue Airline Conference that helps airlines turn every customer touchpoint into a revenue generating activity. Airlines from around the world are deciding to move in this direction. American Airlines alone has turned fees into almost $2.35 billion in yearly revenue. Their total revenue is about $26 billion. It must be remembered that ancillary revenue was virtually untracable just  a few years ago but is becoming an ever important element of the airline business.

Globally, almost every airline is now playing the game including premier airlines such as Emirates, which brought in almost $14 per passenger in ancillary revenue.

Click here to see article on Business Week

My thoughts: The airlines have no choice but to add on fees for checked luggage, snacks, etc.; especially since most customers select an airline based on the lowest fare. It seems like yesterday that many airline passengers complained about being charged for goods and services included in  an airline ticket that they did not use. Well, be careful what you wish for. Now, you pay for what you DO use

Related posts:

1. Amerijet Pilots Declare a “Bathroom” Emergency and Strike! Amerijet 727-200 Takes Off Amerijet, a cargo airline from...
2. Video: Miss Universe Venezuela Returns to Flying! You’ve heard of Pam Ann, but have you heard...
3. America’s Next Airline CEO [youtube E-7FpYXslNc] Hi, I'm Gailen…Fly Me! and Watch My...