Tourism Industry News
U.S. Airlines will generate millions from higher baggage fees
25/01/2010 09:27
Baggage fees present a very strange alchemy for airlines. Higher baggage charges deliver more revenue - even when passengers check fewer bags as a result of the fee hikes.
No doubt Recognizing this, the group of big-5 airlines (American, Continental, Delta, United, and U.S. Airways) all boosted baggage fees during January 2010. IdeaWorks estimates these baggage carriers will realize annual fee revenue of $ 1.76 billion. The "new money" portion of this amount for the group of big-5 carriers Exceeds $ 117 million.
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