Ancillary fees may rise on peak travel days
Airline passenger fees are likely to rise on peak travel days in the future, according to aviation consultant Jay Sorensen.
Sorensen, president of IdeaWorks, expects most major airlines to implement dynamic pricing methods for most ancillary fees, such as seat upgrades, bag fees and pre-paid Wi-Fi access, which would mean higher prices during busy holiday travel periods.
"The industry is slowly moving to the dynamic pricing method that has been used with huge success for air fare pricing," he said in a report.
"Philosophically, the airlines are on board with this if there is sufficient demand," he said.
He predicts ancillary fees will bring in close to $50 billion for the global airline industry in 2014.
So far, only Spirit Airlines charges more for peak demand – it has raised checked bag fees by a nominal $2 during the holiday travel period between December 18 and January 5.
Sorensen’s report forecasts most airlines will implement dynamic pricing for fees within two years.
"In my experience, over the passage of time, these will generally be accepted," Sorensen said.
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