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Ancillary fees proving to be big business for airlines

by amit.uniyal 4. February 2014 08:36

The North American carriers are earning big revenues now, a recent industry report has suggested. Ancillary fees are proving to be big business for various airlines. The industry report published recently said that many North American carriers like American Airlines, United Airlines, Delta Air Lines, US Airways, Virgin America and others have together collected a total of $17.2 billion in ancillary revenue during the year 2013.

A new study however said that there has been a discrepancy between the services that customers are ready to pay for and the amenities and services that are being currently offered to the air travelers. The study has come at a time when the North American carriers are once again gearing up to add more fees in 2014.

The study pointed out that today’s air travelers have become worrisome with the ever increasing ancillary fees. Most of the travelers are strongly objecting to baggage fees, which obviously tops their list. Nearly 89 percent of the travelers surveyed have resented to this and asking the airlines to stop charging for checked baggage. However, 42 percent of the air travelers said that they are ready to pay if the airlines provide a dedicated overhead bin space for their hand luggage, while 35 percent travelers said that they are willing to pay to get their checked luggage on priority at baggage claim. The travelers are also ready to pay for amenities and services that improve their comfort and efficiency, both on board their flight as well as at the airport.

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