Jay Sorensen flies both business class and economy.

While the differences between the two have always been stark B次元官网网址� priority boarding and free alcohol are decades-old features of first-class travel B次元官网网址� 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.

B次元官网网址淭raditional airlines seem to want to punish passengers who buy these fares,B次元官网网址� 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 B次元官网网址渏unk feesB次元官网网址� 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 SorensenB次元官网网址檚 IdeaWorksCompany. The categoryB次元官网网址檚 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, B次元官网网址淓xtended Comfort,B次元官网网址� where economy-class passengers can pay for extra legroom, early access to overhead bins B次元官网网址� coveted real estate due to checked baggage costs B次元官网网址� 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.

B次元官网网址淎ncillary revenues are stickier than passenger revenues, which can be subject to fare changes related to competitor fares on the same route,B次元官网网址� said TD Cowen analyst Helane Becker, adding that airlines aim to B次元官网网址渃reate moats around their business.B次元官网网址�

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

B次元官网网址淲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,B次元官网网址� Sorensen said.

Ancillary income derives mainly from three streams: 脿 la carte services such meals, onboard Wi-Fi and extra bags B次元官网网址� 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 B次元官网网址渘ickel-and-dimingB次元官网网址� risks alienating passengers, who grumble online about a dizzying array of extra fees and service tiers, said John Gradek, who teaches at McGill UniversityB次元官网网址檚 aviation management program.

On social media, WestJetB次元官网网址檚 new Extended Comfort option elicited everything from confusion B次元官网网址� B次元官网网址渁re we getting an extra bill?B次元官网网址� B次元官网网址� to irritation B次元官网网址� B次元官网网址渏ust adds more B次元官网网址� costs to already rising cost of air travel.B次元官网网址�

But the fees arenB次元官网网址檛 going anywhere.

B次元官网网址淭hey love these things,B次元官网网址� Gradek said of airline executives.

B次元官网网址淭he revenues are very big dollars, and in some cases are the lifeline for survivability of ultra-low-cost carriers.B次元官网网址�

Indeed, they make up about 40 per cent of Flair AirlinesB次元官网网址� revenue B次元官网网址� 50 per cent is the goal B次元官网网址� according to its vice-president of ancillary revenue and digital experience.

B次元官网网址淓veryone wants a bigger share of the wallet of travellers,B次元官网网址� 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 B次元官网网址淏ig BundleB次元官网网址� B次元官网网址� one carry-on, one large checked bag, priority boarding, trip modification B次元官网网址� 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.

B次元官网网址淲e get it. No one likes to pay for a carry-on,B次元官网网址� she said.

In its budget last week, the federal government pledged to B次元官网网址渃rack down on junk feesB次元官网网址� 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.

B次元官网网址淚t is very transparent,B次元官网网址� said spokesman Peter Fitzpatrick, highlighting the different tiers of service.

B次元官网网址淥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.

B次元官网网址淥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,B次元官网网址� he said.

(He also said earnings derived from sources other than fares and cargo amount to well under 10 per cent of total revenues B次元官网网址� lower than the consultancy reportB次元官网网址檚 estimate.)

WestJetB次元官网网址檚 Madison Kruger put forward a similar explanation: B次元官网网址淏y offering our guests unbundled product offerings, it ensures that they are only selecting the travel options that matter most to them.B次元官网网址�

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.

B次元官网网址淢ost leisure travellers pick based on price,B次元官网网址� he said. B次元官网网址淪o Air Canada and WestJet have had to lower their base fares B次元官网网址� and that results in the unbundling of the experience.B次元官网网址�

Whether it unravels CanadiansB次元官网网址� taste for travel is another question.

B次元官网网址淚f youB次元官网网址檙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,B次元官网网址� Sorensen said of carriers with spartan service for lower-tier customers.

B次元官网网址淲hy are you treating me radically different when I happen to be in my value mode?B次元官网网址�

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