The difference between low cost and legacy carriers is getting less and less.Major U.S. airlines added baggage fees and charged more for on-board services in 2011, increasing ancillary revenue by 87%, according to projections from Amadeus (via The Economist).
Worldwide airlines increased ancillary revenue by 44%, from $22.6 billion to $32.5 billion.
Says Amadeus VP Holger Taubmann: “As ancillary revenues continue to grow rapidly, we are now seeing increasing interest from full service carriers around the world, which are also starting to implement ancillary services through global distribution systems, such as Amadeus. KLM and Iberia, for instance, have just joined the ranks of carriers implementing the Amadeus Ancillary Services solution for travel agencies. The model is now focusing on services which increase the scope of the product offering and reinforce the brand rather than unbundle the ticket price.”
While the new model will annoy people, it does offer a possibility to save money: pack light and bring a sandwich.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.