Billions in baggage fees
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. |
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 |
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. |
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. |
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. |
I'd favour charges for carry-on luggage as well |
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. |
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. |
Do people assume if all the additional add ons were banned then you could fly for nothing ?
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"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 |
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. |
HH
we've said that for 60 years and constantly been surprised by what the public will accept - And, the moment an airlibe offers 'cash back' it won't take you long to see where you are paying that as 'cash forward' http://cdn.pprune.org/images/smilies/bah.gif |
'forseeable future'.
Do you do shares forecasting as well? :) |
If soemone offered £ 20 off 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. |
Originally Posted by ExXB
(Post 9517931)
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. |
hmmm good idea - with leg restraints operated by the CC.............
"releasing all Seat C passengers ...NOW!" |
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? |
Great, so I pay extra for 3F window seat and a quick exit only to wait for 29CDBE to disembark before me? |
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