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Is unbundling airfares good or bad for fliers?


After the still unsolved mystery of Malaysia Airlines flight MH370, which disappeared in March 2014, and the shooting down of MH17 in July 2014, it's no surprise Malaysia Airlines is struggling. However, the airline is not giving up quite yet, and is in fact planning to become a "value carrier," despite being in debt.

Now, the airline has started offering the option of adding perks to base fees, giving travelers the ability to create their own product. A flier could, for example, book a business class seat at a discount by forgoing lounge access or mileage earnings, which are typically standard perks of sitting in the front of the plane. But in a time when airline fees continue to rise, is unbundling airfares a benefit to fliers?

Interestingly, the results of a national survey published by FindLaw.com found that 84% of Americans oppose the unbundling of airline fees, believing it leads to airlines "nickel-and-diming passengers," as fliers are now forced to pay for amenities and services originally included in the price. That being said, only 53% of these same respondents are willing to pay a higher base fare to eliminate said fees.

Parag Raja, founder of the frequent flier site TravelMore.co, notes it ultimately comes down to lower fares when determining if unbundling airfare is good for customers.

"Customers will only have a favorable opinion on unbundled airfare if forgoing things like choosing seats, free soft drinks and pre-boarding means an overall drop in ticket prices; however, customers will not be happy if unbundling airfare is just another way for airlines to make additional ancillary revenue on services that were once free while not lowering the overall cost of the ticket."

Of course, there are those who use unbundling to their advantage — just look at Frontier Airlines, which unbundles its fares to charge those booking via a third-party site for amenities that fliers who book through the Frontier website get for free or much cheaper.

Similarly, Delta has started removing fares from online travel agencies (OTAs) in order to unbundle and upsell products. If you look at budget carriers like Ryanair and Spirit Airlines, their entire model is centered around offering low base unbundled fares and allowing fliers to choose which services they'd like to pay for.

If major carriers like Malaysia Airlines can translate this into their model, while also offering business and first class fliers more luxurious options not typically found on budget airlines, or economy passengers the option to add a perk or two without breaking the bank, the move might work, at least until the charges — like paying for water or carry-on bags —become more of a pain than flying.


Jessica Festa is the founder on the solo and offbeat travel blog, Jessie on a Journey, and the online responsible tourism and culture magazine, Epicure & Culture. She's constantly searching for local experiences beyond the guidebook. You can follow her travels on Facebook, Twitter and Instagram.