91裸聊视频

Skip to content

Extra fees becoming the norm for Canadian air travel

Budget carriers and cramped conditions mean the base rate is getting you less
web1_2022091914098-6328b0ec0577e0de1659d890jpeg
A plane is silhouetted as it takes off from Vancouver International Airport in Richmond, B.C., Monday, May 13, 2019. THE CANADIAN PRESS/Jonathan Hayward

Jay Sorensen flies both business class and economy.

While the differences between the two have always been stark 91裸聊视频 priority boarding and free alcohol are decades-old features of first-class travel 91裸聊视频 lately the gulf seems to have widened, said the U.S. consulting firm president.

Economy-class trips are defined by shrinking legroom, narrower cushion space, diminishing rewards for frequent fliers and, especially, the myriad fees that can pile up like thunderclouds as airlines increasingly offer top-up options on their tickets.

91裸聊视频淭raditional airlines seem to want to punish passengers who buy these fares,91裸聊视频 Sorensen said of bottom-rung tickets.

The additional money passengers pay for checked bags, pre-selected seats and onboard snacks makes up a growing share of airline revenue, even as a debate swirls around whether the charges amount to 91裸聊视频渏unk fees91裸聊视频 or the lower base price offers greater choice for travellers.

Air Canada took in nearly US$2 billion in so-called ancillary revenue in 2022, up by nearly 50 per cent from five years earlier, according to Sorensen91裸聊视频檚 IdeaWorksCompany. The category91裸聊视频檚 share of total revenue grew to more than 15 per cent from below 11 per cent in the same period.

WestJet this month introduced a new service tier, 91裸聊视频淓xtended Comfort,91裸聊视频 where economy-class passengers can pay for extra legroom, early access to overhead bins 91裸聊视频 coveted real estate due to checked baggage costs 91裸聊视频 and a free alcoholic drink.

Popularized by budget carriers more than 15 years ago and adopted by mainline players since, ancillary revenue plays an increasingly critical role in the industry, helping to diversify income and insulate companies from fluctuations in fare prices, fuel costs and competition.

91裸聊视频淎ncillary revenues are stickier than passenger revenues, which can be subject to fare changes related to competitor fares on the same route,91裸聊视频 said TD Cowen analyst Helane Becker, adding that airlines aim to 91裸聊视频渃reate moats around their business.91裸聊视频

COVID-19 also spawned habits that have been tough for some travellers to kick, including advance seat selection.

91裸聊视频淲here you sat became important to many customers, because if you sat at the front of the airplane, you got off the airplane first. People paid a premium for that, and I think that that behaviour has stayed,91裸聊视频 Sorensen said.

Ancillary income derives mainly from three streams: 脿 la carte services such meals, onboard Wi-Fi and extra bags 91裸聊视频 or any bags; frequent flyer programs; and commission-based offerings such as hotel bookings, car rentals and travel insurance.

Globally, ancillary revenue was forecast to hit a new high of US$117.9 billion in 2023, up from the previous record of US$109 billion in 2019, according to an October report from travel technology platform CarTrawler.

Not everyone is on board.

Endless 91裸聊视频渘ickel-and-diming91裸聊视频 risks alienating passengers, who grumble online about a dizzying array of extra fees and service tiers, said John Gradek, who teaches at McGill University91裸聊视频檚 aviation management program.

On social media, WestJet91裸聊视频檚 new Extended Comfort option elicited everything from confusion 91裸聊视频 91裸聊视频渁re we getting an extra bill?91裸聊视频 91裸聊视频 to irritation 91裸聊视频 91裸聊视频渏ust adds more 91裸聊视频 costs to already rising cost of air travel.91裸聊视频

But the fees aren91裸聊视频檛 going anywhere.

91裸聊视频淭hey love these things,91裸聊视频 Gradek said of airline executives.

91裸聊视频淭he revenues are very big dollars, and in some cases are the lifeline for survivability of ultra-low-cost carriers.91裸聊视频

Indeed, they make up about 40 per cent of Flair Airlines91裸聊视频 revenue 91裸聊视频 50 per cent is the goal 91裸聊视频 according to its vice-president of ancillary revenue and digital experience.

91裸聊视频淓veryone wants a bigger share of the wallet of travellers,91裸聊视频 said Juliana Ramirez.

Part of the strategy is to lure consumers to the website with rock-bottom fares, and then offer numerous add-ons, she said.

A $67 fare for a one-way Toronto-Vancouver flight next month quickly balloons to $323 after selecting the $90 91裸聊视频淏ig Bundle91裸聊视频 91裸聊视频 one carry-on, one large checked bag, priority boarding, trip modification 91裸聊视频 plus a front-row seat, a bundle of travel insurance, a $15 online check-in ($25 if you wait until the airport) as well as taxes and third-party fees.

Ramirez acknowledged the frustrations of paying well over twice the price of your ticket simply to secure what would have been standard parts of the flight package a few decades back.

91裸聊视频淲e get it. No one likes to pay for a carry-on,91裸聊视频 she said.

In its budget last week, the federal government pledged to 91裸聊视频渃rack down on junk fees91裸聊视频 charged by carriers. That prompted the National Airlines Council of Canada to demand greater clarity from Ottawa, arguing that fees give customers greater flexibility.

Air Canada said the advantage of unbundling is that customers know precisely what they are paying for.

91裸聊视频淚t is very transparent,91裸聊视频 said spokesman Peter Fitzpatrick, highlighting the different tiers of service.

91裸聊视频淥ur branded fares are part of our ancillary strategy, as each branded fare is a combination of ancillaries (such as bag, seat selection and flexibility) sold as a package.

91裸聊视频淥ur experience is customers appreciate having the option to tailor their travel to suit their needs, including not paying for services they do not wish to have,91裸聊视频 he said.

(He also said earnings derived from sources other than fares and cargo amount to well under 10 per cent of total revenues 91裸聊视频 lower than the consultancy report91裸聊视频檚 estimate.)

WestJet91裸聊视频檚 Madison Kruger put forward a similar explanation: 91裸聊视频淏y offering our guests unbundled product offerings, it ensures that they are only selecting the travel options that matter most to them.91裸聊视频

Larger airlines see no choice other than to slice their purchase options into ever thinner levels of service in order to beat back the threat of discount carriers, said Ricky Zhang, founder of Vancouver-based travel rewards website Prince of Travel.

91裸聊视频淢ost leisure travellers pick based on price,91裸聊视频 he said. 91裸聊视频淪o Air Canada and WestJet have had to lower their base fares 91裸聊视频 and that results in the unbundling of the experience.91裸聊视频

Whether it unravels Canadians91裸聊视频 taste for travel is another question.

91裸聊视频淚f you91裸聊视频檙e positioning yourself as a better-service airline than (ultralow cost carriers), that branding statement is not aligned with your behaviour to basic economy passengers,91裸聊视频 Sorensen said of carriers with spartan service for lower-tier customers.

91裸聊视频淲hy are you treating me radically different when I happen to be in my value mode?91裸聊视频

READ ALSO:





(or

91裸聊视频

) document.head.appendChild(flippScript); window.flippxp = window.flippxp || {run: []}; window.flippxp.run.push(function() { window.flippxp.registerSlot("#flipp-ux-slot-ssdaw212", "Black Press Media Standard", 1281409, [312035]); }); }