The Age of Unbundling
Airlines have fundamentally changed how they sell tickets through a practice called “unbundling.” In the past, your ticket price generally included a checked bag, a meal, and seat selection. Today, the low base fare you see advertised often covers little
more than your transport from one airport to another. Everything else—from checking a bag to choosing an aisle seat—is sold separately as an ancillary service. This model, pioneered by low-cost carriers, has now been widely adopted across the industry, making it harder for consumers to compare the true cost of flights without doing some maths.
Why Airlines Rely on Add-Ons
This shift isn’t arbitrary; it's a core business strategy. The airline industry operates on notoriously thin profit margins. Ancillary revenues, which are projected to reach $165 billion globally in 2026, provide a crucial and fast-growing source of income. For some low-cost airlines, these optional fees can make up a significant portion of their total revenue. By unbundling the fare, airlines can advertise a low entry price to attract customers while generating profits from the array of optional extras purchased during the booking process. This strategy helps them stay profitable in a highly competitive market with volatile fuel prices and high fixed costs.
The Common Costs That Add Up
The list of potential add-ons is long and growing. The most common charges Indian travellers encounter include baggage fees, seat selection fees, and convenience fees for booking. Checked baggage is a primary ancillary charge, and even carry-on bags can incur a fee on the most basic fares. Seat selection for a standard window or aisle seat in India can range from ₹100 to ₹500, while seats with extra legroom can cost up to ₹1,500 or more. Other extras include on-board meals, priority boarding, travel insurance, and even fees for checking in at the airport instead of online.
A Smart Traveller’s Guide to Navigating Fees
While you can’t avoid the unbundling trend, you can manage the costs. The most important step is to always compare the total price, not the headline fare. Before booking, consider what you truly need. If you're on a short trip, travelling with only a personal item that fits under the seat can save you significant baggage fees. If you need to check a bag, it is almost always cheaper to pay for it online in advance rather than at the airport. When it comes to seat selection, if you're travelling alone and aren't particular, skipping the fee and letting the airline assign you a seat at check-in is the most economical choice. Finally, look out for fare bundles offered by airlines; sometimes, these packages, which include a bag and a seat, are cheaper than buying each add-on separately.
