Here's why airlines now charge separately for checked bags and the price keeps going up
Checked bags are $99? Are you kidding me?
A group of travelers waits patiently to check their bags.
Maybe you’re one of those elite travelers who’s mastered packing for an entire trip using only carry-on luggage. If so, you’re likely haughty and won’t stop crowing about the convenience of hopping off the plane and jetting to your destination.
We know: The airlines lost your bag in 1986 and you vowed never again. So, now you roll three garments, one pair of shoes, a tiny bottle of 5-in-one body wash, and a Kindle into your backpack, and you're good to go.
For the rest of us mere traveling mortals, especially those with kids, checking bags is a necessary evil—a necessary and costly one.
If it seems to you like checked bag fees have been steadily climbing, that’s because checked bag fees have been steadily climbing. According to this article, bag fees on American Airlines rose 33% just last year from $30 per bag to $40 and 5 of the 6 biggest carriers raised their fees last year.
Why is the entire industry upping their checked-bag fees? There’s a specific reason involving an arcane bit of tax code, which accounts for why the fees are tacked on separately versus rolled into the price of the ticket.
Jay L. Zagorsky, a business school professor who studies travel, says 7.5% of every domestic ticket goes to the federal government. Airlines dislike this, claiming it raises ticket prices for consumers. But as long as the bag fee is separate, it is excluded from the 7.5% transportation tax.
Estimated bag fees for 2023 topped 7 billion. By making the bag fees separate, airlines saved themselves about half a billion dollars. If that savings has been passed down to the customer, then we all got a bit of a break, too.
Perhaps you automatically dislike the separate fees because you’re Gen X and remember a time when a ticket was all-inclusive. Now, it feels like you’re paying for stuff you used to get for free.
Turns out that more and more travelers actually like the separate charges.
“One thing that our research has shown,” Henry Hartevedlt, president of travel industry analytics firm Atmosphere Research told USA Today, “is that more than two-thirds of U.S. leisure airline passengers now feel that the unbundling of the coach product and letting people buy what they want and need on an à la carte basis is actually something they like because it helps them stick to their budget.”
This is a positive way to look at something that’s undoubtedly here to stay. And now if you hear someone complain about bag fees at the airport, you’ll know why it’s done the way it’s done, which is really sweet satisfaction in itself.
Of course, there's always this unusual workaround courtesy of Reddit user Old_Man_Withers, "I Fedex my luggage to the hotel and carry nothing on the plane but my laptop for work. It doesn't matter if it's 2 days or two months, I ship it. The hotel has it waiting in my room when I get there and I ship it back home from there when I'm done. No random inspections, no chances of loss without recompense, fully trackable... I see no downside that isn't worth the 50-100 bucks it costs."