July 1, 2025
Understanding Airline Fees: Why Economy Fares Do Not Include Seat Assignments Upfront Anymore
As a travel agency with 15 years of experience, we have seen the travel industry evolve dramatically, particularly in how airlines structure their pricing. One of the most common frustrations we hear from clients is the unexpected “operational” cost of choosing a seat assignment when booking an economy fare. Many travelers are surprised to learn that the “economy” ticket they purchased doesn’t include the ability to select their seat without paying an additional fee. If they opt not to pay, they’re left waiting until check-in—often just 24 hours before departure—to find out where they’ll be sitting. This change has sparked confusion and frustration, with some customers mistakenly believing their travel agent is upselling them or hiding fees. In reality, these charges stem from airline policies, not travel agents. Let’s explore the history of airlines “nickel and diming” customers, why these changes happened, and how the shift in economy fare structures, particularly around seat assignments, came to be.
The Rise of Airline Fees: A Brief History
The practice of airlines charging additional fees for services once included in the ticket price began in earnest in the early 2000s, driven by a combination of economic pressures and industry shifts. To understand this, we need to go back a bit further. In the late 20th century, air travel was often seen as a premium service. Ticket prices typically included perks like meals, checked baggage, and yes, the ability to choose your seat at no extra cost. However, the airline industry faced significant challenges that reshaped its approach to pricing.
The deregulation of the U.S. airline industry in 1978 was a pivotal moment. It allowed airlines to set their own fares and routes, leading to increased competition and lower ticket prices. While this made air travel more accessible, it also squeezed airline profit margins. Fast forward to the early 2000s, when a series of crises—9/11, soaring fuel prices, and the 2008 financial recession—pushed many airlines to the brink of bankruptcy. Major carriers like United, Delta, and Northwest filed for Chapter 11 protection between 2002 and 2005. To survive, airlines had to rethink their business models.
The Birth of the “Unbundled” Airline Model
Enter the era of “unbundling,” where airlines began separating services from the base ticket price to create new revenue streams. This strategy was pioneered by low-cost carriers (LCCs) like Spirit Airlines and Ryanair, which offered rock-bottom fares but charged for nearly every additional service, from carry-on bags to in-flight water. Legacy carriers—those full-service airlines like American, United, and Delta—initially resisted this approach but soon followed suit to remain competitive. By 2008, baggage fees became widespread, with most major U.S. airlines charging $15–$25 for the first checked bag. This marked the beginning of the “nickel and diming” era, where services once considered standard were now optional extras.
The unbundling model allowed airlines to advertise lower base fares, making them appear more competitive on booking platforms. However, these low fares often came with trade-offs, like limited flexibility or additional fees for services like seat selection. This shift wasn’t just about boosting profits; it was also a response to consumer behavior. Many travelers prioritized the lowest upfront cost, even if it meant paying extra for add-ons later. Airlines capitalized on this by creating tiered fare structures, where basic economy fares offered the lowest price but the fewest perks.
The Seat Assignment Fee: Why Economy Changed
One of the most noticeable changes for travelers has been the decoupling of seat assignments from economy fares. Historically, purchasing an economy ticket meant you could choose your seat during booking or shortly after, ensuring you could sit with your travel companions or secure a preferred spot, like a window or aisle seat. Today, many airlines, particularly in the U.S., have introduced “basic economy” fares that exclude this privilege. If you want to choose your seat at booking, you’ll need to pay an additional fee—often ranging from $10 to $50 per seat, depending on the airline, route, and seat location.
This change began gaining traction around 2016 when major U.S. carriers like Delta, United, and American introduced basic economy fares to compete with ultra-low-cost carriers. These fares were designed to appeal to price-sensitive travelers while encouraging others to upgrade to higher fare classes (like main cabin or premium economy) that include seat selection and other benefits. For example, Delta introduced its Basic Economy fare in 2012, but it wasn’t until 2016–2017 that seat assignment fees became more widespread across the industry. By 2018, most major airlines had adopted similar policies, with seat selection fees becoming a standard part of the booking process for basic economy tickets.
The rationale behind this shift is twofold. First, it’s a revenue generator. Airlines discovered that many passengers are willing to pay for the certainty of a specific seat, especially families or groups who want to sit together. Second, it’s a way to differentiate fare classes. By reserving perks like seat selection for higher-tier economy fares, airlines incentivize customers to spend more for a “better” experience. The result? Basic economy passengers who don’t pay the fee are assigned seats at check-in, often leading to less desirable options like middle seats or separation from travel companions.
Why This Frustrates Customers (and Travel Agents)
For customers, this shift can feel like a bait-and-switch. They see a low fare, book it, and then discover they can’t choose their seat without paying extra. This leads to frustration, especially when the total cost creeps closer to a higher-tier fare that includes seat selection. As travel agents, we often bear the brunt of this confusion. Clients may assume we’re withholding information or trying to upsell them when we explain the seat assignment fee. In reality, we’re navigating the same complex airline policies as our clients, working to find the best options within their budget.
It’s worth noting that not all airlines handle seat assignments the same way. Some, like Southwest, don’t assign seats at all, using an open-boarding system where position is determined by check-in time or a paid upgrade for priority boarding. Others, like international carriers such as Emirates or Singapore Airlines, may still include seat selection in their economy fares, particularly on long-haul flights. However, for most U.S.-based airlines, the basic economy model is here to stay.
How Travel Agents Can Help
As travel agents, our role is to demystify these complexities and advocate for our clients. We can explain the differences between fare classes, highlight the trade-offs of basic economy, and help you decide whether paying for a seat assignment or upgrading to a higher fare makes sense. We also have access to tools and relationships that can sometimes secure better options or clarify airline policies upfront. Most importantly, we’re here to ensure you understand that these fees come from the airlines, not us. Our goal is to make your travel experience as smooth and transparent as possible.
Looking Ahead: What Travelers Can Do
To navigate this new landscape, travelers can take a few steps. First, read the fine print when booking. Basic economy fares are often clearly labeled, with details about restrictions like seat assignments. Second, consider your priorities. If sitting together or getting a specific seat is important, factor the seat selection fee into your budget or opt for a higher fare class. Finally, book early—some airlines offer more flexibility with seat assignments for basic economy passengers who book well in advance.
The airline industry’s shift to unbundled pricing and seat assignment fees reflects a broader trend toward customization and cost control. While it’s frustrating to pay for services once included, understanding the history and reasoning behind these changes can help travelers make informed decisions. As travel agents, we’re here to guide you through this evolving landscape, ensuring your journey starts on the right foot—whether you’re in a window seat or not.
