Jay Sorensen flies both business class and economy.

While the differences between the two have always been stark 害羞草研究所� priority boarding and free alcohol are decades-old features of first-class travel 害羞草研究所� 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.

害羞草研究所淭raditional airlines seem to want to punish passengers who buy these fares,害羞草研究所� 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 害羞草研究所渏unk fees害羞草研究所� 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 Sorensen害羞草研究所檚 IdeaWorksCompany. The category害羞草研究所檚 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, 害羞草研究所淓xtended Comfort,害羞草研究所� where economy-class passengers can pay for extra legroom, early access to overhead bins 害羞草研究所� coveted real estate due to checked baggage costs 害羞草研究所� 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.

害羞草研究所淎ncillary revenues are stickier than passenger revenues, which can be subject to fare changes related to competitor fares on the same route,害羞草研究所� said TD Cowen analyst Helane Becker, adding that airlines aim to 害羞草研究所渃reate moats around their business.害羞草研究所�

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

害羞草研究所淲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,害羞草研究所� Sorensen said.

Ancillary income derives mainly from three streams: 脿 la carte services such meals, onboard Wi-Fi and extra bags 害羞草研究所� 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 害羞草研究所渘ickel-and-diming害羞草研究所� risks alienating passengers, who grumble online about a dizzying array of extra fees and service tiers, said John Gradek, who teaches at McGill University害羞草研究所檚 aviation management program.

On social media, WestJet害羞草研究所檚 new Extended Comfort option elicited everything from confusion 害羞草研究所� 害羞草研究所渁re we getting an extra bill?害羞草研究所� 害羞草研究所� to irritation 害羞草研究所� 害羞草研究所渏ust adds more 害羞草研究所� costs to already rising cost of air travel.害羞草研究所�

But the fees aren害羞草研究所檛 going anywhere.

害羞草研究所淭hey love these things,害羞草研究所� Gradek said of airline executives.

害羞草研究所淭he revenues are very big dollars, and in some cases are the lifeline for survivability of ultra-low-cost carriers.害羞草研究所�

Indeed, they make up about 40 per cent of Flair Airlines害羞草研究所� revenue 害羞草研究所� 50 per cent is the goal 害羞草研究所� according to its vice-president of ancillary revenue and digital experience.

害羞草研究所淓veryone wants a bigger share of the wallet of travellers,害羞草研究所� 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 害羞草研究所淏ig Bundle害羞草研究所� 害羞草研究所� one carry-on, one large checked bag, priority boarding, trip modification 害羞草研究所� 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.

害羞草研究所淲e get it. No one likes to pay for a carry-on,害羞草研究所� she said.

In its budget last week, the federal government pledged to 害羞草研究所渃rack down on junk fees害羞草研究所� 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.

害羞草研究所淚t is very transparent,害羞草研究所� said spokesman Peter Fitzpatrick, highlighting the different tiers of service.

害羞草研究所淥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.

害羞草研究所淥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,害羞草研究所� he said.

(He also said earnings derived from sources other than fares and cargo amount to well under 10 per cent of total revenues 害羞草研究所� lower than the consultancy report害羞草研究所檚 estimate.)

WestJet害羞草研究所檚 Madison Kruger put forward a similar explanation: 害羞草研究所淏y offering our guests unbundled product offerings, it ensures that they are only selecting the travel options that matter most to them.害羞草研究所�

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.

害羞草研究所淢ost leisure travellers pick based on price,害羞草研究所� he said. 害羞草研究所淪o Air Canada and WestJet have had to lower their base fares 害羞草研究所� and that results in the unbundling of the experience.害羞草研究所�

Whether it unravels Canadians害羞草研究所� taste for travel is another question.

害羞草研究所淚f you害羞草研究所檙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,害羞草研究所� Sorensen said of carriers with spartan service for lower-tier customers.

害羞草研究所淲hy are you treating me radically different when I happen to be in my value mode?害羞草研究所�

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