Airlines receive £14bn from ‘extras’
The total revenue airlines received from “extras” such as baggage charges and fees for purchases made with credit cards rose by 66 per cent in the last two years, according to new research.
Ancillaries. €18 billion and counting.
AIRLINES earned €18.23 billion ($22.6 billion) in ancillary revenues in 2011, a 66% increase on 2009. Analysis by IdeaWorks, a consulting organisation, and Amadeus, a company that provides technology to the travel industry, of the 50 airlines that disclose ancillary earnings (three more than last year) highlights the profound importance of ancillaries to an industry that often struggles to make profits. Several carriers earned over 20% of total revenues from these add-on charges in 2011, and several earned over €30 per passenger.
Travelers Face More Airline Fees and Higher Costs
Airline passengers can expect more ancillary fees and higher costs as airlines worldwide seek to expand ancillary revenues. A new study by Amadeus and IdeaWorksCompany reports that ancillary fees by airlines grew to $22.6 billion in 2011, which represents a 66 percent increase in two years. United Continental, Delta, American and Qantas are the top ancillary revenue carriers for 2011 and 2010, the report notes.
Add-On Airline Fees: Good or Bad?
I fondly remember the days when purchasing an economy class airline ticket included free checked bags, a meal and a full seat map from which to pick a seat. Today, however, many airlines are charging for those features and one report claims it’s a good thing.
The New York Times
Airlines weighing fee for oversize carry-ons
Here’s something that the big airlines really wish we wouldn’t discuss right now, with planes flying full, fares rising, fuel prices stabilizing and customers generally resigned to the air travel system:
The Wall Street Journal
Best Airlines for Redeeming Miles
Ready to redeem your frequent-flier miles and reward points for a plane ticket? You’ll probably get a seat on Southwest, but good luck with Delta, at least at the basic redemption level.
Travel Notes: Airline points can buy some weird stuff
A study by Wisconsin firm IdeaWorks of 150 air miles programs has revealed the 40 weirdest things you can do with your points. Aeroplan made a nice showing, with a leather vest signed by George Clooney for 177,000 points (the value of the points go to charity). American Airlines will give you a beer tasting tour of Brussels for 14,700 points (you’re on your own for the flight, of course), and Lufthansa will give you a “sockscription” of fresh socks, three shipments of three over eight months.
Airlines get creative with frequent flyer rewards
You know frequent flyer programs have changed when one of the rewards on offer is a class for people afraid of flying.
10 weird but wonderful frequent flyer rewards
Everybody knows that frequent flyer programs can land you better seats, free trips, and the ability to board the plane before the unwashed masses. But did you know that Air Baltic frequent flyer miles will pay for a dog-sled ride in Latvia? Or that Hawaiian Air will help you tee off at the championship Coral Creek golf course in Ewa Beach, Hawaii?
The New York Times
New Airline Revenue Goes Beyond Baggage Fees
Those fees for checked bags or in-flight meals? They are just the start. Now that airlines have realized how much money they can make by selling more than just a seat on their planes, they are coming up with all sorts of income-producing ideas — including selling flight interruption insurance and producing merchandise with their logos.