The best a la carte income performer for airlines of all types, including low-cost carriers and global network airlines, is luggage. The most recent research published by IdeaWorksCompany discusses novel concepts for carry-on luggage, checking in baggage, and booking route displays.
The most recent innovation in the ongoing search for auxiliary money throughout the world is the imposition of fees for carry-on luggage. The low-cost carrier industry has always been a trailblazer in this regard, and as a result, more and more conventional airlines are beginning to implement taxes. For the year 2021, the worldwide income from luggage fees was projected to be $20.9 billion.
When airlines adopt a strategy that is grounded on sound business principles rather than clinging to outmoded practices, there is the potential for significantly increased revenue. Smart airline management teams recognize that innovative baggage services are required to make the trip better for customers. Baggage belts convey cash for CarTrawler, a worldwide supplier of travel technology, backs the Smart Airlines initiative, which pushes airlines to improve their baggage operations and receives funding from the company. The following are some of the most important conclusions included in the twenty-page study that was released today:
Aer Lingus implemented a new baggage policy in June 2021, according to which a checked bag is included in the price of its lowest saving rate (inside Europe), but a big carry-on is not permitted.
AirAsia enables passengers to increase the standard carry-on weight allowance from 7 kg to 14 kg for an additional charge.
A record $7.42 in baggage income was produced for each passenger by American Airlines in 2021, bringing the carrier’s total revenue to $1.22 billion.
The advantages of a big carry-on bag and select allocated seats, such as those with more leg space and front-of-cabin zones, are now both offered by EasyJet.
With an expected income of $21.51 per passenger in 2021, Spirit Airlines has one of the highest baggage revenue rates in the world.
Volaris has a baggage delivery guarantee that entails a reimbursement of MXN $1,000, which is equivalent to $80 in the United States, in the event that a passenger’s luggage do not arrive on the same aircraft as the person.
“This report shows that baggage fee revenue is a strong component of airlines’ ancillary revenue drivers and one that can continue to be optimized as airlines respond to changing customer needs and provide options that best suit their clientele,” said Laura Demery, Interim Director of Partnerships at CarTrawler. “This report also shows that baggage fee revenue is a component that can continue to be optimized as airlines respond to changing customer needs and provide options that best suit their clientele.” The fact that worldwide baggage fees will reach $20.9 billion in 2021 demonstrates that there is room for airlines to optimize this income stream and give a superior experience to their customers at the same time.