TravJouS Facebook Page Please Like and Share

Articles

IS THE TRAVELER WILLING TO PAY FOR COMFORT?

User Rating: Rating Star BlankRating Star BlankRating Star BlankRating Star BlankRating Star Blank / 0
PoorBest 

Ios Logo

Android Logo

Amazon Logo

BB Just click on the icon to get the Airline Flight Check-In App on your device!

IS THE TRAVELER WILLING TO PAY FOR COMFORT?

From April 1st many airlines have changed their check-in baggage rules. Travelers now have to pay extra for their luggage. Even Dutch Airlines such as Transavia and Corendon have since yesterday joined the club.

I.embed

Tickets are now being stripped that travelers often have to pay for these “Extras “. Irish Airline Ryan Air even briefly played with the idea to charge passengers for using the toilet.

From a survey of fly.com customers taken between Jan. 5 and Jan. 9, 2014, an amazing 89 percent felt the airlines should stop charging for checked luggage but 35 percent said they would pay to have their bags come out first at baggage claim.

From this survey it was interesting to find out that airline passengers are willing to pay extra for more comfort during the flight. 45 percent of the surveyed travelers would pay for extra legroom and they would also spend extra money for a reserved space for their carry-on baggage (42 percent). Even 34 percent are willing to pay to prevent the seat in front of them to recline and 26 percent would like to spend money if it means that the seat next to them is empty.

Even for added convenience for getting in and out of the plane first, travelers again are willing to open their wallets. Further 36 percent would want to pay for priority during the security check and 35% for priority to get their luggage first after the flight.

I.embed

The survey also found out the following:

•  The most popular bundled fare packages include waived baggage fees (88 percent), confirmed seat selection (45 percent) and a security fast pass (35 percent);

•  46 percent of travelers have not chosen the cheapest flight because of flight times;

•  50 percent of Fly.com respondents list price as the most important factor when purchasing airfare; and

•  10 percent of travelers choose flights based on brand loyalty.  However nearly all of these would switch to a different airline if their ticket was at least $51 cheaper.

A report by Idea Works Company, "The CarTrawler Worldwide Estimate of Ancillary Revenue", estimates that global airline ancillary revenue will reach $42.6 billion in 2013. Of that, revenue from optional services, including onboard food and beverages sales, checked baggage, premium seat assignments and early boarding represents $23.7 billion of the projected global total. 

The world airline industry is seeing better financial results and black ink on the bottom line, helped greatly by ancillary revenues. IATA projects $708 billion in global airline revenue ($227 per passenger) and $11.7 billion in total net profits for 2013, which represents a slim 1.6 percent net profit margin.

Airline ancillary fees are unlikely to go away and they are here to stay.  These costs are now for the airlines part of the business, producing a great deal of profit.

Share
   

Twitter Feeds