Prepare for a novel pricing structure in air travel: Basic Economy Fares

In a significant shift in airline business strategies, the introduction of Basic Economy fares has become a popular trend, as reported by IdeaWorks Company and CarTrawler in October 2013. This move was estimated to bring in a staggering $23.7 billion in revenue, primarily from optional services such as onboard sales of food and beverages, checked baggage, premium seat assignments, and early boarding benefits.

The trend of Basic Economy fares can be traced back to airlines observing the success of these fares, initially introduced by Spirit Airlines. In response, major players like United Airlines and Delta Air Lines followed suit, with United Airlines launching Basic Economy fares alongside Delta in February 2018.

The cities now offering Basic Economy fares include Fort Lauderdale and Orlando, Florida, New Orleans, Las Vegas, and Austin, Texas. Delta, in particular, is now offering these fares from its Atlanta, Detroit, Minneapolis-St. Paul, and Salt Lake City hubs to 21 cities.

With the success of Basic Economy fares, it's not surprising to expect this fare type to show up on other airlines as well. As airlines continue to adapt to the competitive market, passengers can expect more options and potentially lower base fares, but with a trade-off in terms of services and amenities.

As always, it's essential for travellers to understand the implications of their fare choices and make informed decisions to suit their needs and preferences.