Poll Numbers Show Service-Charged Service on the Rise in Aviation Industry

A survey in the aviation industry has indicated that charging fees for services instead of including benefits in the price of a ticket will become more prevalent.

According to IdeaWorks, 63 percent of airline executives in a worldwide survey indicated such development related to ancillary revenues, referring to paying in the future for assigned seats, checked baggage, and paying by credit card. The survey was distributed online and attracted participation by over 140 airline managers.

For airlines, this new revenue stream provides welcome relief to fill the gap between rising fuel costs and falling fares. Consumers could benefit from the evolution of all-inclusive pricing, to a process that allows them to enjoy the lowest fare and to add services a la carte, according the company.

Among the other findings, its been indicated that airline executives seem reluctant to charge for website bookings, checked baggage, and pre-assigned seats and the executives seem to embrace the practice of charging customers for call center support.

The 52 percent survey result reveals this amenity has the highest fee-based penetration of the survey.

This practice offers the attractive alternative of encouraging travelers to book via the website of the airline. But nearly half the respondents indicate their airline continues to provide the benefit without charge. Complimentary airline food, which long ago declined in popularity with travelers, has also declined in popularity with management.

More and more airlines, as evidenced by a total response by 80 percent of survey participants, plan to pass on the cost of call center operations to the consumer. An estimated 33 percent of airline executives, representing the largest “future fee” response, indicated they plan to introduce fees for onboard movies, video or live television in the future.

Airline management finds premium seating an attractive ancillary revenue opportunity as evidenced by the increased response rate for charging fees for better seat assignments. As much as 24 percent of respondents indicate their airlines will start charging for this feature at a future time.