Business Daily How airline fees turned baggage into billions
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May 14, 2025 Chelsea Dickinson, a travel journalist and founder of CheapHolidayExpert.com, dives into the billion-dollar airline baggage fee market. She discusses how stricter luggage limits have spurred a booming business for bag manufacturers. The conversation highlights the mix of consumer frustration and creative packing hacks popularized by social media influencers. Dickinson also explores the shifting landscape of airline pricing strategies, suggesting a potential future where airlines offer free luggage as a premium service to enhance customer satisfaction.
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Traveler Avoids Baggage Fees
- Lauren flew with just a backpack and a small fanny pack to avoid baggage fees.
- She thinks fees are ridiculous and feel like a trick on passengers who thought tickets were cheaper.
Baggage Fees Impact Operations
- Indigo includes baggage in base fares to avoid long lines and boarding delays.
- Charging for bags in Europe causes gate disputes and slower plane turnaround times.
Ancillary Fees Huge Revenue Source
- Ancillary revenue from fees forms about 15% of global airline revenue, nearing $150 billion.
- Fees include baggage, seat assignments, frequent flyer programs and travel services.