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Will your expense account cover airline fees?
“These fees are going to stay, and they will grow in importance for the airline industry, especially when we see fuel prices begin to creep up again,” says Jay Sorensen, a consultant who is an expert on ancillary fees. “Airlines are unable to push through fare increases that match cost increases when the price of fuel is jumping up.. .. la carte fees work very well to fill that gap.”
Atlanta Journal Constitution
Delta, other airlines push a la carte model
“A la carte pricing is here to stay because airlines have found that it’s easier to add a fee or to raise a fee than it is to raise a fare,” airline consultant Jay Sorensen said. Because consumers can compare fares in a single glance on a travel website, “it’s very difficult for an airline to go out of alignment to try to raise a fare.”
What next? More airline fees possible in 2011
The strategy of offering fliers low fares and then charging for anything extra has worked well for airlines. The global airline industry is poised to earn as much as $22 billion from a la carte fees and other ancillary sources in 2010, according to Jay Sorensen, president of IdeaWorks, a company that tracks consumer trends.