Avoid Airline Junk Fees: U.S. Senate Subcommittee Report and Essential Strategies for Travelers
By Joel Hartz with Additional contribution by Alice Ingram
The rising trend of additional charges, known as “Junk Fees,” in the airline industry.
In recent years, ancillary fees have become an increasingly important revenue source for airlines. In 2023, it was reported that airlines in the U.S. generated a staggering $54 billion from ancillary fees including baggage fees, which include charges for checked luggage, overweight bags, and larger carry-on items. However, this practice of levying what are often termed “junk fees” is now under scrutiny.
Critics argue that the practice of charging ancillary fees on top of the base ticket price is deceptive and unfair to customers, as it makes it difficult for them to accurately compare prices between airlines.
Additionally, some consumers feel nickel-and-dimed by the plethora of fees that can quickly add up to a significant portion of the total cost of their trip. As a result, there have been calls for more transparency and regulation regarding these ancillary fees, with some lawmakers pushing for legislation that would require airlines to disclose all potential fees upfront at the time of booking. Others have called for a cap on the amount of ancillary fees that airlines can charge.
In response to these criticisms, some airlines have begun to include certain ancillary fees in their base ticket price, in an effort to simplify the booking process and provide customers with a more transparent view of the total cost of their trip. However, as ancillary fees continue to be a significant revenue source for airlines, it remains to be seen whether these changes will have a lasting impact on the industry.
Senate Investigation into Airline Pricing Methods
A recent report from a U.S. Senate subcommittee led by Senator Richard Blumenthal has sparked significant debate about the fairness and transparency of airline pricing. The investigation focused on five airlines: American Airlines, Delta Air Lines, United Airlines, Frontier Airlines, and Spirit Airlines. Findings from the report indicate that these airlines have been charging passengers excessive fees, which some argue are not reflective of the actual service costs.
These fees include charges for checked baggage, seat selection, and ticket changes. Critics have also raised concerns about the lack of transparency in how these fees are calculated and displayed to passengers during the booking process. Blumenthal’s investigation has brought attention to the need for greater regulation and oversight of airline pricing practices to ensure that passengers are not being exploited or misled.
Baggage Fees and Incentives
One notable revelation is the monetization of baggage policies by Frontier and Spirit. These airlines not only enforce strict baggage requirements but also incentivize their gate agents based on compliance with these rules. Reports indicate they spent $26 million on these incentives over the past two years, leading to concerns about fairness for travelers who may incur unexpected fees at the gate.
Senator Blumenthal has called for greater transparency, urging Congress to demand more detailed disclosures about airline fees. He believes that consumers have the right to know how airlines are benefiting from these fees and how they are being distributed among employees. By providing more transparency, he hopes to hold airlines accountable for their pricing practices and ensure that travelers are not unfairly burdened with hidden costs.
In addition to transparency, Senator Blumenthal is also pushing for regulations that would require airlines to clearly disclose all fees upfront, including those that may be assessed at the gate. This would not only help consumers make more informed choices when booking flights, but also prevent any surprises or frustrations when it comes time to board the plane.
Overall, the goal is to create a more fair and equitable system for airline passengers, where they can trust that they are being charged fairly and that their rights as consumers are being protected. By addressing these issues, the Senate Subcommittee hopes to improve the overall flying experience for all travelers.
Seat Selection and Revenue Streams
The investigation also highlighted the lucrative nature of seat selection fees, which netted the five airlines approximately $12.4 billion from 2018 to 2023.
These fees are charged to passengers who wish to choose their seats in advance, rather than being assigned a seat at check-in. The investigation found that these fees were often higher for seats with extra legroom, located near the front of the plane, or in other preferred locations. Many passengers felt pressured to pay these fees in order to secure a desirable seat, leading to increased revenue for the airlines.
Pricing for extra legroom seats can reach up to $319, showcasing how airlines use dynamic pricing strategies based on demand and customer data. By analyzing data on customer preferences and demand, airlines can adjust prices for extra legroom seats accordingly. This practice allows airlines to maximize profits by offering higher prices for seats that are in high demand.
This dynamic pricing strategy is common in the airline industry, where prices can fluctuate based on various factors such as time of booking, seasonality, and route popularity.
In the end, dynamic pricing enables airlines to increase customer charges and maximize profits.
Using private customer information to adjust prices raises concerns about transparency because consumers often struggle to comprehend how these charges are determined. This practice also raises concerns about fairness, as it could potentially lead to different customers being charged different prices for the same products or services.
Additionally, the collection and use of personal data for this purpose can raise privacy issues, as customers may not be fully aware of how their information is being used (against them. Overall, there is a need for greater transparency and regulation in this area to protect consumers and ensure that they are being treated fairly.
Tips to Avoid Paying Baggage Fees
If you wish to avoid being included in the mentioned statistics, there are numerous methods to bypass paying for luggage charges.
Carry-On Luggage Only
Many legacy airlines do not charge fees for carry-on luggage, unlike some low-cost carriers. However, if you are flying on a basic economy fare, you may be subject to additional fees. Even if you are flying internationally on a basic economy fare, you can still avoid baggage fees by packing lightly and only bringing carry-on luggage.
Get an Airline Credit Card
Another simple way to avoid checked baggage fees, in addition to traveling with lighter luggage, is by having a credit card that is co-branded with the airline you are flying with. Several airlines provide at least one free checked bag, and some even offer two. Some credit cards also provide the benefit of free checked bags for other passengers on your itinerary.
It is advisable to choose a credit card that corresponds to the airline you fly with the most in order to fully utilize the perks.
For instance, if you often fly with American Airlines, there are credit cards like the Citi/AAdvantage Platinum Select World Elite Mastercard that provide a complimentary checked bag for the cardholder (and up to 4 companions).
If you are a dedicated customer of United Airlines, the United Explorer card will provide you with a complimentary checked bag for yourself and a companion.
Southwest Airlines also offers one free checked bag to holders of any of their co-branded credit cards for the cardholder and up to eight additional passengers on the same reservation.
However, other airlines like Spirit Airlines, Frontier Airlines, and Allegiant Air do not offer free bags with their co-branded credit cards. In these cases, you can use a card such as the Capital One Venture Rewards Credit Card to pay off charges on your statement using miles earned with the card.
Before my most recent trip to Southeast Asia, I began using the Capital One Venture card and amassed a significant amount of reward points through the sign-up bonus and replacing expensive camera gear prior to the trip.
Fly Premium Class or Have Elite Status
Yet another option is to enroll in an airline’s loyalty program to earn a level of status that includes a complimentary baggage allowance, although this typically requires purchasing additional flights. Alternatively, you could choose to book a premium ticket like business or first class, which often includes one or two complimentary checked bags.
Gambling at the Gate
If you are feeling lucky, you can take a chance and check your bag at the gate. You may not have to pay a baggage fee, but you still need to pack a bag that meets security requirements. This might involve following stricter carry-on rules, but don’t worry, we have a helpful guide on How to Easily Get Through TSA Airport Security.
Final Thoughts
To sum up, with air travel playing a crucial role in business and personal travel planning, it is important for airlines to clearly communicate all the costs involved in flying upfront. Travelers should be cautious of extra charges that could increase the overall price of a seemingly cheap ticket.
Moreover, travelers should also be mindful of possible interruptions, such as delays and cancellations, that could occur during their trip. They should consider purchasing travel insurance to protect against these setbacks and familiarize themselves with airline compensation policies.
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Despite these challenges, air travel can still be an efficient and convenient way to explore the world. In conclusion, by being informed and prepared, travelers can have a smooth and enjoyable flying experience.
For further assistance with airline compensation for Flight Delays, Cancelations or Denied Boarding consider AirHelp or Compsenair:
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Affiliate disclosure: Please be aware that this article contains affiliate links, which means we earn a small commission at no additional cost to you. As an Amazon Associate we earn from qualifying purchases.
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