Ancillary revenue has become a $22 billion industry for airlines to cash in on
As previously reported, airlines are implementing more fees for passengers. Ancillary revenue has become a $22 billion industry, particularly important to carriers as fuel prices rise. Extra charges for checked baggage, snacks, drinks, pillows, blankets and so on are becoming commonplace, particularly in the US. Low-cost carriers such as Spirit and Allegiant Travel are leading the way. Allegiant’s additional fees add around $35 to the average fare, for example. But US Airways has now started to sell what it calls “choice seats”, while American and United offer the choice of early boarding to non-elite frequent flyers for a fee. Delta is preparing to test charges for luxury food later in the spring.
Industry insiders believe that airlines will start to build itineraries of services for passengers, in which they choose whether to buy them or not. Travellers would be able to combine air travel with theatre tickets or dinner reservations.