Will Airlines Begin Market Pricing on Fees?

A quick check on our TruPrice beta shows what most people already know:  While rental car company ancillary fees often vary from city to city even for the same company, airline fees are consistent for most domestic travel.

But given the relatively new market phenomena of ancillary fees and their huge boost to airlines’ bottom lines, is the next logical step for airlines to equate market share with fee pricing power?  And to act on it?  It makes perfect business sense.  It’s already implemented with fares, so why not with fees?  TruPrice predicts that we will soon see variable fee pricing based on location.  If Delta controls most of Cincinnati’s CVG airport traffic, then why wouldn’t it charge more for a bag than at New York’s JFK where competition is much more intense.

Time will tell.  But don’t be surprised if in 2011 TruPrice is reporting the market differentiation of ancillary fees.  And we will be right there to track the new developments and keep loyal TruPrice users in the know about their True Cost of Travel. Simplified.

Chris

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