How baggage fees can change. They exceed all other airline charges.


Business to business study helps consumer groups understand how baggage fees change.


checked baggage

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Whenever adversaries battle over travel policy changes, there is a long-held rule — know your enemy. The recent IdeaWorks study, Baggage Belts Deliver Cash for Smart Airlines, reviews the baggage fee landscape and future trends. Trends show the unstoppable increase of baggage as a percentage of global airline revenue: 2019: 3.7 percent; 2020: 3.9 percent; and 2021; 4.6 percent. It is confident that checked baggage fee collections will increase. Plus, there have been significant changes in baggage fees for carry-on baggage.

Here, consumers should pay close attention. Every airline can utilize baggage fees to increase its revenues. Therefore, airlines love these fees, even those that currently do not charge such fees. Similar payments to those levied today may not appear as airlines look at new fees. But, there will be other types of baggage fee collections based on weight, size, the time of baggage fee payment, and an increase in carry-on baggage charges. These new fees are being used by many worldwide airlines today.

Materials taken directly from the IdeaWorks study are marked.

Every traveler should expect new baggage fees as airlines increase revenues.

You are being secretly taxed at airportsToday, only one domestic carrier, Southwest Airlines, does not charge for checked luggage. However, even this airline charges for overweight and large-sized baggage. In Europe, major airlines all have baggage fees. And only the Middle East airlines (including Turkish) sell airfares with luggage included. Exact fees differ among airlines.

Today, the Ultra-Low-Cost carriers (ULCC) all charge a type of carry-on baggage fee. Some larger airlines sell “basic economy” airfares that do not include carry-on baggage.

Carry-on Baggage fees have had a difficult introduction. Most network carriers have eschewed charging baggage fees. They often have resorted to cheap airfare that does not include carry-on baggage. However, Spirit, Frontier, Allegiant, and the new start-up ULCCs all have carry-on baggage fees. The introduction of carry-on baggage fees resulted in the largest US carriers promising not to charge carry-on fees.

Branded fares offer travelers choices but add costs, according to the IdeaWorks study.

Branded fares are an exceptional way to package a la carte services for consumers. These are best sold as a choice of three, which is consistent with the “good, better, and best” narrative understood by consumers. Each fare is always available and is not allowed to “sell out” while others are available. Rather, the pricing of all three fares increases as warranted by demand. In addition, price points between the choices should be predictable and reasonable. This eases the decision-making process for consumers. When branded fares are correctly presented, the expected sales distribution is: 45 percent, lowest fare; 45 percent middle fare; and 5 percent the top fare. When binary choices are presented (2 fares) consumers will overwhelmingly choose the lower price – perhaps 90+ percent.

JetBlue uses branded fares as its carry-on bag revenue strategy. The fares also define boarding order for passengers, with Blue Extra boarding early and Blue Basic boarding last. Similar to the Priority Boarding method, this preserves overhead space for those paying higher fares. JetBlue has an extensive list of carry-on policy waivers for its Blue Basic fare. These passengers may bring a large carry-on, regardless of the fare purchased: TrueBlue frequent flyer program elite members, travelers to/from London, active US military, unaccompanied minors, and passengers that buy extra leg room seating.

Aer Lingus introduced a new baggage policy in June 2021. It’s unique among LCCs because a checked bag is now included with all branded fares. For intra-Europe flights, there are four fares offered: Saver, Plus, Advantage, and AerSpace. Saver just includes a 10 kg checked bag and limits carry-ons to a small personal item. The other higher-priced fares convert the 10 kg bay to a carry-on (not checked) with priority boarding, and add a 20 kg checked bag. Everyone now gets a checked bag – that’s an unusual policy for a low cost carrier.

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Now come the consumer carry-on gripes.

Nowhere does the airline define what a personal item exactly includes. I have seen women stopped for carrying a purse as well as a backpack and a rollaboard carry-on.  At the same time, a man can clamber aboard with a small duffle bag and a full-sized carry-on. There seems to be no real enforcement of weight. This begs the question of whether there should be a weight limit for carry-on baggage. Is there, in actuality?

What about Frequent Flier miles for baggage? Spirit Airlines gives those who check bags frequent flier miles. No network carrier provides similar inducements to get more passengers to check baggage.

Frontier has a system that charges extra for baggage as the departure gets closer. Paying during booking costs the least and the most expensive is checking a bag planeside. Again, frequent flier miles are not included.

One of the biggest reasons passengers refuse to check bags is the time of receiving them after flights. Since 2010, Alaska Airlines has put a guarantee behind their baggage delivery. If checked bags are not at baggage claim within 20 minutes of your plane’s arrival at the gate, Alaska Airlines will offer you a $25 discount code for use on a future Alaska Airlines flight or 2,500 Alaska Airlines Mileage Plan™ bonus miles. Passengers love it, but only a tiny percentage ever make claims.

Here is the IdeaWork Study Baggage Belts Deliver Cash for Smart Airlines.


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