Airline ancillary revenue hits $36.1 billion, but bag fees are only part of the equation


Skift Take

Smart airlines look for ancillary services that might add value to the journey -- and make fliers happier -- instead of just gouging for bag fees.

A new report projects that global airlines' ancillary revenue from bag fees, frequent flyer miles, and add-ons such as premium seats will rise 11.3% to $36.1 billion in 2012. The third annual forecast of global airlines' ancillary revenue from consulting company IdeaWorks and travel technology firm Amadeus contains a lot of interesting data, including insights about the role of bag fees. [caption id="" align="aligncenter" width="640"] Luggage on the carousel at Boston's Logan Airport. Photo by kbrookes.[/caption]

The forecast, called The Amadeus Worldwide Estimate of Ancillary Revenue, discusses the divergent bag-fee policies of major U.S. airlines and big carriers outside the U.S.

While many U.S. airlines focus on checked-bag fees, large airlines elsewhere in the world eschew checked-bag fees, and instead collect fees for excess baggage, including fees or lugg