Singapore unbundles fares, regional competitors should take note

Singapore unbundles fares, regional competitors should take note

Singapore Airlines has announced new pricing structures for all four of its cabins, following in the footsteps of other global legacy carriers like Delta and United. Effective January 20, all Singapore and SilkAir – a regional affiliate – tickets will be structured as such.

The biggest impact will be to the airline’s economy tickets, where no-frills-whatsoever base fares can be supplemented by extra charges like checking bags, paying for seats, priority boarding, etc.

This may seem bad for the consumer, but it actually gives them more choice to tailor their airfare to their budget and needs. If you’re carrying a backpack and headphones, the Lite fare will do. If you want to accrue more miles on the flight or sit closer to the front, you can go for a more expensive option.

The move is not a risky one – plenty of airlines have proven this model helps the airline’s bottom line.┬áSingapore’s regional competitors, including Hong Kong’s Cathay Pacific, would do well to follow suit – especially in given their current financial state. Ancillary fees can provide more revenue than even base fares, and it gives passengers more options to tailor their travel experience.

More details about the changes to each cabin’s fare structure an be found in the graphics below and on this page.


NB: Featured image of Singapore’s A380-800 in the SG50 livery courtesy of Singapore Airlines.

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