2 years, 4 months ago

Why booking directly with airlines can be more expensive

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Rather than earning profit margin on airfare itself, which is highly competitive, airlines are increasingly focused on “ancillary revenue” from add-on fees, credit card rewards programs and seat upgrades. Between 2019 and 2021, ancillary fees as a percentage of total revenue for major U.S. airlines jumped six percentage points, from 16.1% to 22.2%, according to a report by IdeaWorksCompany, an airline industry reporting firm. But while airlines continue to push ancillary fees and travel booking platforms have more incentive to show you the costs of flights upfront in their search results, travelers can save money by booking through third parties. IdeasWorks Company.. “The 2022 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany.” https://ideaworkscompany.com/wp-content/uploads/2022/09/2022-Ancillary-Revenue-Yearbook-1.1.pdf RELATED LINK: NerdWallet: Basic Economy vs. Main Cabin: Cheap or Convenient But Not Both https://bit.ly/nerdwallet-basic-economy-vs-main-cabin Federal Register: Enhancing Transparency of Airline Ancillary Service Fees https://www.federalregister.gov/documents/2022/10/20/2022-22214/enhancing-transparency-of-airline-ancillary-service-fees

The Independent

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