It’s hard to go a day without reading an article about how airlines are “nickel-and-diming” travelers with new fees. It’s a popular sound bite. But what is the real impact of these “fees” on passengers?
Believe it or not some passengers today are opting to pay additional charges for things like checked baggage, premium seating, and priority boarding to add value to their trip experience. Other travelers enjoy these services—called ancillary products and services—complimentary based on frequent flyer status, affinity credit card usage, and other variables. Some of these services used to be included in the price of a fare, such as checked bags, while some of these services didn’t even exist ten years ago, such as onboard Wi-Fi. Undoubtedly, some travelers feel that the airlines are squeezing every last penny out of them, and they are paying more for air travel than they used to. However, the numbers suggest that travelers are seeing considerable savings as compared a decade ago. Read the rest of this entry »