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Fuel is cheap. Why are we still paying to check bags?

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 Economics   |   Society / Culture   |   Environmental   |   Social Science
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Airlines are making a fortune on fees, but it's not ALL bad for consumers.

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In The United States, checked baggage fees were introduced in 2008. Since then, ancillary fees for airline travel have become a significant source of revenue for US airlines. The amount of baggage fees paid by passengers in The United States was nearly $4 billion dollars last year. Despite the negative consequences of baggage fees, a new study has revealed one positive outcome for consumers. By comparing data from before and after the introduction of baggage fees, a group of business school researchers determined that the fees improved on-time departure performance for airlines. To read the study, click here: http://pubsonline.informs.org/doi/abs/10.1287/mnsc.2016.2500

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