The travel and tourism sector has become one of the worst hit industries due to the coronavirus pandemic. As a result of the COVID-19 crisis, the global business travel market is predicted to see a loss of $810.7billion (£654.5billion) in revenue in 2020, with China seeing the biggest loss, according to Statista. Airlines are just one of the industries that are contributing to this loss, with one expert predicting that more than 400 airlines worldwide are expected to file for bankruptcy this year.
The US federal Bureau of Transportation Statistics announced on Monday that airlines made a combined $5.8billion in revenue on baggage fees last year alone, meaning that this year, they are expected to make a lot less.
Along with ticket change and cancellation fees, airlines made $8.6billion (£6.94billion) in key ancillary revenue streams in 2019.
CEO and Founder of Send My Bag, an international luggage delivery service, Adam Ewart, explained that as airlines restart their operations, these hidden ancillary costs or “added extras” could rocket, making air travel a lot more expensive.
He explained: “Since Flybe became the first UK based airline to charge for checked baggage in 2006, ancillary revenue has increased exponentially.
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Flights: The new hidden costs that could make air travel prices surge after lockdown (Image: GETTY)
Flights: The travel and tourism sector has become one of the worst hit industries (Image: GETTY)
“Initially, more and more airlines followed suit and began charging for baggage, but it wasn’t long before these hidden fees were applied elsewhere: from priority boarding to seat reservation.
“The federal Bureau of Transportation Statistics has now announced that US airlines collected $5.8billion (£4.68billion) in baggage fees last year, and the UK is on a similar course.
“With the spread of coronavirus, airlines are unfortunately experiencing unprecedented financial turbulence.
“However, in order to recoup the estimated $314billion