Time-dependent pricing of ancillaries
We're all used to the idea of the price of an air ticket changing over time, with the price generally increasing as it gets nearer to departure date.
On many airlines, baggage in the hold, or even large cabin baggage, incurs a fee. The nearer one gets to departure date, the better a passenger knows how much baggage they want to take.
Importantly, the price of checked-in baggage is typically the same, whether booked 6 months in advance, or a couple of days in advance - the passenger has no need to commit in advance. So far it's typically only pax who buy baggage bookings at the bag drop desk or gate who pay more. It seems airlines are not making effective use of this revenue stream. Why not instead have a variable-price system for baggage ? If pax commit 6 months ahead, make checked baggage cheaper, and increase the price nearer departure date, as baggage hold bookings fill up. Checked baggage fees are typically nonrefundable (barring flight cancellation), and airlines, particularly LCCs, can then monetise a passenger's deferral of baggage-decision. It can be sold as a way for pax to save money by helping the airline plan better... and it encourages pax to commit to giving their nonrefundable cash to an airline - pax paying baggage fees for baggage they don't actually take is highly profitable !
Do any airlines currently implement this idea ?
As an extension... perhaps this variable price idea could cover other ancillaries, like large cabin baggage, seat reservations, meals booked in advance, flight change fees, etc...
Last edited by davidjohnson6; 9th Nov 2022 at 10:09.