Reports were made that despite the incredible growing in baggage fee revenues over the last decade, revenues for airlines were actually on the way down despite a slight rise of passengers in 2011 compared to 2010.
Is this good news for passengers? The truth is, no…well, not really. Bottom-line, the fees are still the same and they aren’t going away. If anything, they will be going up and more fees are likely to be created in the near future.
What are the reasons the revenue has dropped?
People are doing a better job of traveling light and not checking bags. This also results in bigger carry-on bags, and drum roll please…will eventually lead to more airlines charging for carry-on luggage. Spirit, which is well known for nickel-and-diming passengers with extra fees, already announced a $100 fee for passengers that have to bag check their luggage at the gate. This will undoubtedly deter people from bringing large carry-on luggage that does not fit in overhead bins. Doing so has been a trick frequent fliers have been using ever since baggage fees came into existence.
The airlines are doing a better job of selling branded credit cards, which often waive baggage fees. A percentage of passengers are using these cards to save money on baggage fees, but undoubtedly end up paying the same, if not more, from the various credit card fees.
