{"id":2615,"date":"2020-01-17T11:18:35","date_gmt":"2020-01-17T16:18:35","guid":{"rendered":"https:\/\/www.gtitravel.com\/?p=2615"},"modified":"2020-02-04T14:09:34","modified_gmt":"2020-02-04T19:09:34","slug":"how-airlines-are-changing-the-baggage-game-who-is-the-winner","status":"publish","type":"post","link":"https:\/\/www.gtitravel.com\/how-airlines-are-changing-the-baggage-game-who-is-the-winner\/","title":{"rendered":"How Airlines are Changing the Baggage Game. Who is the Winner?"},"content":{"rendered":"

\"How<\/a>Airlines in the U.S. collected nearly $5 billion in baggage fees last year. The cost of ancillary services in airline travel continues to rise, of which baggage plays a pivotal role. Though premium classes remain largely unaffected, passengers purchasing low-cost fares are taking an increasing financial hit as economy carriers create more complex pricing schemes, causing\u00a0business travel planners<\/a>\u00a0to struggle to keep costs in check.<\/p>\n

While baggage fees comprise 3% of total revenue for U.S. carriers, they make up a much higher portion of revenue for discount airlines like Spirit and Frontier, which rake in 19% of their income from baggage fees. Low-cost carriers are increasingly upping the ante, with a growing number of carriers worldwide now charging for carry-on baggage.<\/p>\n

Understand the Baggage Game<\/strong><\/h2>\n

Airlines aren\u2019t exactly pocketing the nearly $5 billion in fees that frustrate budget-conscious customers. They are being leveraged by the airlines in tax arbitrage. The excise tax of 7.5% applied to domestic airline tickets doesn\u2019t apply to the fees for your\u00a0travel event<\/a>, allowing airlines to reap significant tax savings, keeping hundreds of millions of tax dollars in their coffers.<\/p>\n

Despite rising ancillary charges, passengers aren\u2019t paying more for travel overall. Ticket prices typically fall with rising baggage fees. Instead, baggage fees are being used to secure traveling costs that would have previously been part of airline fares. However, this has pushed many travelers to carry-on baggage, slowing the boarding process, and increasing operating costs.<\/p>\n

Alternatives for Checked Baggage<\/strong><\/h2>\n

For those tired of being nickel-and-dimed at purchase or suffering the heavy financial penalties of dimension or baggage weight problems at the airport, there are alternatives. To prevent baggage costs from eclipsing ticket prices, try these\u00a0cost-saving<\/a>\u00a0luggage alternatives:<\/p>\n