Indian airlines are devising new fare structures where travelling without a check-in baggage may turn out to be 10-15 per cent cheaper.
Last week, the Directorate General of Civil Aviation (DGCA) allowed airlines to unbundle services, including check-in baggage, implying airlines can charge for them as extra. Currently, it is compulsory for airlines to allow at least 15 kg of luggage without any charge.
Unbundling — dividing the product or service into separate elements and selling them each at different prices — is a profit maximisation strategy, primarily aimed at attracting the price-sensitive customer. This is not the first time that the