According to the U.S. Department of Transportation, U.S. commercial airlines collected over $3.5 billion in baggage fees in 2014. Some airlines even charge passengers to bring carry-on bags onto the plane. How do baggage fees affect traveler's behavior? What is a potential cost to the airline from this policy that might offset the benefit from the bag revenues?

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10-02-2019
Business

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According to the U.S. Department of Transportation, U.S. commercial airlines collected over $3.5 billion in baggage fees in 2014. Some airlines even charge passengers to bring carry-on bags onto the plane. How do baggage fees affect traveler's behavior? What is a potential cost to the airline from this policy that might offset the benefit from the bag revenues?

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jcherry99 jcherry99 · Answer 1 · 2019-02-10T01:45:37+01:00

In Canada this is a real aggravation. The more you tack on, the less likely someone is to use your air service or any air service for that matter, presuming buses or ships or trains are an option. I don't fly so I'm not sure of this, but I think there are even airport fees tacked on here. It comes to quite a bill when all is added up.

Checking on travelzoo I find that all airline tickets are subject to 7 different types of fees or taxes including something called the 9/11 fee. Trust me, it is cheaper to find an alternate method of travel.

The only good news is that the carrier must declare all fees and taxes that apply in addition to the cost of the ticket.