$4.2bn Revenue: Assigned Seating Fees Thrive for 8 US Airlines

It is clear that it's time to review assigned seating fees, given the inclusion of seat charges in President Biden’s recent State of the Union Address.

The $4.2 billion estimate is the revenue from assigned seat fees generated by eight major US airlines in 2022 (Alaska, Allegiant, American, Delta, Frontier, Spirit, United, and JetBlue).

A 15-page report entitled Airlines Assign Big Priority to Seat Selection, was published. The report includes results from booking queries made at six US Airlines to test the assigned seating fees, ranging from the rear of the cabin up to the front zone. The methods used by American Spirit to distinguish between low-cost carriers and global network airlines are highlighted. The report also includes five recommendations that suggest ways to improve the multi-billion dollar business of airlines and consumers.

Encourage purchases with points/miles: Let your frequent flyer programme do its magic and integrate assigned seats as an offer.

Create a product that guarantees travelers their assigned seat, or an equivalent alternative.

Families: Ensure that an adult and a child are guaranteed a seat in the booking route at no cost.

Seat maps should be simple and effective. Mark each one with a price, which will imply its value. Use graphics to describe the different benefits of seats.

Simplify and reduce rules: This is just a seat assignment. It's not a big life event. The complexity will be greatly reduced by making assigned seats refundable.

"With $4.2 billion in ancillary revenue from assigned seating alone, it's clear that optimising this offering will ensure airlines continue to not only maximise their revenues, but also increase customer satisfaction and loyalty," mentions Aileen McCormack, Chief Commercial Officer, CarTrawler. "Our technology assists our partners in understanding exactly what their customer needs and when, and providing it seamlessly in the customer journey to enable them to increase conversion."

Source: traveldailynews.com