Canadian airlines have adopted flexible - and more profitable - pricing for baggage fees, similar to airfare pricing, based on factors such as demand, flight routes, and time of purchase, reports the Globe and Mail.
Porter Airlines and budget carrier Lynx Air are among those using dynamic pricing for baggage fees, with Lynx Air’s carry-on baggage fees ranging from CAD $59.99 to CAD $66.49 for online bookings, up from a flat rate of CAD $39.99. Flair Airlines and WestJet are also implementing variable pricing, with fees varying based on travel dates and routes.
While airlines argue that this pricing strategy is an opportunity to increase revenue from ancillary services — with some carriers reporting an average increase of eight to 16 per cent — and provide discounts to consumers during off-peak seasons, critics warn that it may complicate cost comparisons and even gouge consumers.
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