Explain how businesses implement segmented pricing and discuss conditions
necessary for success.
Any charge that is not airfare is referred to as ancillary revenue for airlines—and
they are cleaning up on it to the tune of $20 billion a year.
While consumers can
avoid some fees, such as those for food, preferred seating, and wi-fi, the majority can’t avoid baggage fees.
What type of pricing strategies are airlines using? Is
it ethical for airlines to charge baggage fees?
