The title says it all. According to an article recently on TheStar.com, “Worldwide, 104 airlines raked in $21.46 billion in extra revenue, which ranged from add-on charges for baggage and food to vacation packages. That’s a staggering increase from the $2.45 billion collected in 2007, when extra charges were largely just a discount airline money-maker.” And guess what, it is forecasted to grow significantly more!
Then went on to state, “Hugely irritating to travellers and a source of increasing U.S. demands for upfront full disclosures of all charges, ancillary revenue leaped from discount airlines into the mainstream three years ago when United Airlines started charging for a second piece of luggage.”
Finally they stated, ““As à la carte pricing methods are perfected and become more pervasive,” add-on revenue will increase in 2011, said Sorensen in his report. Aggressive discount carrier AirAsia X, for example, reaped ancillary revenue of $23.67 per passenger by pushing online à la carte booking.”Like what you just read? Subscribe!