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In a market such as the US domestic market, where every airline (regardless of FSC or LCC) has to pay for the baggage fee, a
In a market such as the US domestic market, where every airline (regardless of FSC or LCC) has to pay for the baggage fee, a study has shown that the baggage fee does not impact the choice of airlines for passengers (Cho and Dresner, 2018). Another study by Scotti and Dresner (2015) shows that passenger demand is more sensitive to airfare increases over baggage fees. Therefore, with more and more FSCs in other parts of the world starting to charge for check-in baggage, baggage-related ancillary revenues will remain the largest income generator for airlines in the unbundled category. True or false
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