Billions in baggage fees

[b1lanc]

Interesting report on airline ancillary revenue.

https://www.cartrawler.com/ct/media/...rbook-2016.pdf

United named world leader in making money unrelated to ticket sales.

[Heathrow Harry]

Not a surprise but more interesting is the % of ancillaries to total sales

Table 2: Top 10 Airlines
–
Ancillary Revenue as a % of Total Revenue

43.4% Spirit
37.6% Allegiant
36.4% Wizz Air
29.4% Jet2.com
24.0% Ryanair
22.3% Volaris
21.3% Jetstar
21.2% Flybe *
20.8% Tigerair
19.5% Alaska Air Group

[ExXB]

There is a big difference between revenue and profits. Most airlines still make less than 5% return on investment, even in the boom times (aka low fuel costs). There are exceptions of course.

Was it Warren Buffet that said "If I had been at Kitty Hawk, I would have shot them both"?

Regulators don't help where, in the USA for example, fares are subject to a tax, but charges are not. It sorta encourages this practice.

At the end of the day, I prefer to pay for what I want, and not subsidise other customers.

[RAT 5]

At the end of the day, I prefer to pay for what I want, and not subsidise other customers.

Would that also include mandatory:

over inflated 'administration' charges.
over inflated credit card charges - with no other option.
airline imposed calamity tax.
over inflated baggage charges during school holidays.
some kind of compulsory insurance of an unknown nature.

I wish it were so simple as pay for a ticket and then add options.

[ExXB]

Your list is irrelevant, as booking systems give me the total price inclusive of all compulsory charges. That's the law in the developed world. Only the optional ones, that I can pick and choose, are not included.

I don't really care how they allocate the revenues internally.

I'd favour charges for carry-on luggage as well, but so far only a couple of airlines have gone for that.

[Hotel Tango]

I'd favour charges for carry-on luggage as well

Over a certain size and weight, maybe, but otherwise I think this would be one charge too far. I certainly would avoid such airlines as a matter of principle.

[ExXB]

Anything bigger than a handbag, man bag, (small) laptop bag should be at a charge of 150% of the checked bag fee.

Life would be good, and bags would be in the hold.

[PAXboy]

The 'Billions in baggage Fees' is obviously click bait for the consultancy and all good luck to their marketing team.

Whilst ExXB suggests an alternative, I think the present model is too deeply entrenched in the public minfs for any big change in the forseeable future. Folks want the immediacy of their bag on their shoulder and, as even the small regional airports expand, then the time delay from the hold to the carousel belt just gets longer.

[racedo]

Do people assume if all the additional add ons were banned then you could fly for nothing ?

[Heathrow Harry]

"the present model is too deeply entrenched in the public minfs for any big change in the forseeable future."

we've said that for 60 years and constantly been surprised by what the public will accept -

If soemone offered £ 20 off if you didn't take ANY hand luggage but had to check it all I think you'd be amazed how many people would choose it. Offer £ 50 off and you couldn't handle the demand

[Hotel Tango]

If soemone offered £ 20 off if you didn't take ANY hand luggage but had to check it all I think you'd be amazed how many people would choose it.

I doubt it if they would then have to pay £50 for putting it in the hold! I think you miss the point HH. Some airlines are charging both for hold and cabin baggage. That's just taking the pi$$ as far as I'm concerned and will not fly on any airline which does this. The whole thing is just becoming totally and absolutely ridiculous. I just hope that the majority of airlines will stay on the path of common sense.

[PAXboy]

HH

we've said that for 60 years and constantly been surprised by what the public will accept -

True - which is why I said 'forseeable future'.

And, the moment an airlibe offers 'cash back' it won't take you long to see where you are paying that as 'cash forward'

[RAT 5]

'forseeable future'.

Do you do shares forecasting as well?

[ExXB]

If soemone offered £ 20 off

Air Canada had that idea a decade or so ago, Charged an all-inclusive price and then you could choose to deduct those bits you didn't want; checked baggage; seat selection; miles; etc.

It didn't last for long.

Does anyone here know why they abandoned the idea (which I liked immensely)? I suspect that it was because their growing domestic competitor applied the opposite model. Low initial price plus add-ons.

[Davef68]

Originally Posted by ExXB

Anything bigger than a handbag, man bag, (small) laptop bag should be at a charge of 150% of the checked bag fee.

Life would be good, and bags would be in the hold.

hahaha! Especially considering most introduced checked baggage charges to encourage people to carry everything with them and reduce admin and turn around times! (Actually, if they really want to do that, they need to actively manage disembarking - aisle columnss first, then middle seats then windows on a 737/A320 for example)

[Heathrow Harry]

hmmm good idea - with leg restraints operated by the CC.............

"releasing all Seat C passengers ...NOW!"

[Shack37]

hahaha! Especially considering most introduced checked baggage charges to encourage people to carry everything with them and reduce admin and turn around times! (Actually, if they really want to do that, they need to actively manage disembarking - aisle columnss first, then middle seats then windows on a 737/A320 for example)

Great, so I pay extra for 3F window seat and a quick exit only to wait for 29CDBE to disembark before me?

[Hotel Tango]

Great, so I pay extra for 3F window seat and a quick exit only to wait for 29CDBE to disembark before me?

Of course not. You also pay for the extra Prority Disembarkation fee.......so that you can be first off the aircraft and first on the bus that takes you all to the terminal