Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Airlines Made A La Carte Pricing the New Normal
In this episode of Pricing Power Podcast on Fexingo, Lucas and Luna break down how airlines unbundled airfare into a menu of add-on fees — and why that strategy spread from budget carriers to the big three. They trace the origin back to Ryanair in the early 2000s, examine the psychology of 'base fare anchoring,' and show how ancillary revenue grew from $2 billion industry-wide in 2007 to over $100 billion by 2025. The conversation covers why consumers hated fees but kept paying them, how Southwest resisted then adopted the model, and what the unbundling playbook means for pricing in…
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