Travel Companies Are Hanging On To Hidden Fees Because Fraud Works - View from the Wing

There’s a simple reason that annoying fees are prevalent in travel. They work. Customers spend more money. And in some cases politics and the tax code encourage them. John Arnold shares what happened at StubHub when they tested an elimination of hidden fees for some customers: those who were shown transparent all-in pricing spent less money. Customers subject to the back-end fees spent 21% more money and were 14% more likely to make any purchase. Stubhub, which had started a transition to fully transparent pricing in 2014 in response to loads of customer complaints of hidden fees, reversed this policy and reinstated them after this A/B test.

viewfromthewing.com     Nov 20, 2023