Shrinkflation — a term originally used to describe the practice of reducing product sizes while maintaining or even increasing prices — has become a growing concern across various consumer industries. From smaller chocolate bars to thinner toilet paper rolls, to lower proof beer, companies have proven quite adept in finding ways to cut costs without necessarily lowering prices.

However, this phenomenon is no longer confined to grocery stores; it has taken flight—quite literally—into the airline industry.

Yes my fellow Broke Backpackers. It pains me to say it but over the past decade, air travel has undergone a similar transformation too. While base fares have fluctuated, the overall cost of flying has steadily increased as airlines remove services once considered standard and replace them with paid add-ons.

All of this raises a highly important question: Are air passengers now paying more while receiving less?

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    Table of Contents Show

    Airfares Taking Off and Landing

    The cost of airline tickets has been on an upward trajectory for years but they have particularly spiked since 2020. While pandemic-era discounts briefly provided lower prices, the return of international travel demand has driven significant increases in airfare.

    According to data from the U.S. Bureau of Transportation Statistics, the average domestic airfare in the U.S. was $352 in Q3 of 2023, up from $291 in Q3 of 2020—a nearly 21% increase. Some estimates suggested that they rose by another 25% in 2024 too!

    Similarly, international fares have surged, with many transatlantic routes now costing 30-40% more than they did in the pre-pandemic days.

    For example:

    • A round-trip economy ticket from New York to London, which cost around $500 in 2019, now often exceeds $700.
    • Flights from Los Angeles to Tokyo, once available for under $900, are now regularly priced at $1,200 or more.

    While inflation and fuel costs have contributed to this rise, much of the price hike is actually due to airlines shifting their revenue models towards add-on fees.

    Let’s look into this further.

    Checked Baggage: Once a Given, Now a Luxury

    The Cooler by Stubble & Co

    It wasn’t long ago that checked baggage was included as standard in the cost of most airline tickets. Initially, budget carriers pioneered the concept of charging for bags, but now even legacy airlines have followed suit.

    • Major U.S. carriers like American Airlines, Delta, and United now charge at least $30 for a first checked bag on domestic flights.
    • European low-cost airlines, such as Ryanair and Wizz Air, have gone a step further by charging for carry-on baggage too unless passengers pay for priority boarding. How long before they charge an extra $10 for wearing pants with pockets?
    • Even premium economy passengers on some airlines now face reduced baggage allowances or increased fees.

    These additional costs can make what appears to be a cheap flight far more expensive when factoring in baggage fees.

    On this point – what is particularly annoying about this is that many leading flight search engine aggregators still only show the bottom price, so have to ‘click through’ multiple screens to get the real price.

    Note that at least for now most airlines let you carry an under-seat bag. I use the Stubble & Co Hybrid Pack and if you pack carefully and lightly you can get a few days worth of gear in it. I then pair this with a Nomatic Sling that carries a bit more stuff!

    Seat Selection: Paying Extra to Sit Together

    Another frustration for travelers is the increasing cost of seat selection. Budget airlines have long since turned ‘seat selection’ into a significant revenue stream by charging passengers extra just to guarantee seats together — even families with young children!

    However, this cheeky little practice was previously firmly confined to budget airlines offering short leg flights. But, unfortunately it has now spread out into more established, premium airlines and is becoming commonplace even on premium, long-haul flights.

    Check this;

    • British Airways charges anywhere from $30 to $100 per person for advance seat selection on long-haul flights.
    • Delta and United have faced criticism for separating families unless they pay to choose seats.

    While airlines claim these fees allow passengers to ‘personalize their experience’, (WTF does that even mean?!) the simple fact is that many travelers feel coerced into paying extra just to avoid being split up.

    Here is a crazy little anecdote to help underline this point.

    Me and my partner recently took a $1k, 10 hour trip to Mexico with Tui and (thinking we were gaming the system), we left her randomly allocated seat selection in place, and I paid £18 to sit with her. However, when we got to the airport and got our boarding passes we found that they had moved her seat so I really paid £18 to sit with a stranger.

    Fortunately it worked out well in the end as the said stranger was actually a lot nicer than my girlfriend.

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    In-Flight Service: The New Age of Rationing

    people boarding ryanair airplane

    Once an integral part of air travel, complimentary meals and beverages have been steadily shrinking in size and deteriorating in quality.

    • Economy-class meal portions have decreased, with airlines citing ‘waste reduction’ as a justification.
    • Where long haul flights are obliged to offer passengers 2 meals, you can bet your ass that one of them will almost always definitely be either a sandwich or a ‘continental breakfast’. Basically cheap and unsatisfying.
    • Refreshment carts make less tours up and down the aisle. If you want that extra drink, then you have to walk to the back of the plane and badger the hostess for it.
    • Some carriers, such as JetBlue, now limit free non-alcoholic beverages, charging for additional drinks on long-haul flights.
    • Extras like blankets, pillows, and even basic headphones have been removed or monetized, forcing passengers to either bring their own or pay a premium onboard.

    My Grandma tells me that these days air travel brings back horrific memories of the post-war days of ration books.

    SafetyWing: A Travel Essential That Still Offers Value

    While airlines are busy stripping away the ‘perks’ that were once considered the bare minimum, the good news is that the ‘pay more get less’ trend is not entirely universal across the travel industry…

    For example, SafetyWings Travel and Health Insurance still remains a solid budget-friendly option for travelers who want good coverage without any hidden fees.

    Unlike airlines- who seem focused on taking away-  SafetyWing continues to give more and more to its customers and is always updating and improving its policies.

    For full details, you can read about their Nomad Essential and Complete Plans here. Alternatively you can simply bash the buttons below to go directly to their site.

    ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.

    They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.

    SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!

    Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.

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    In-Flight Entertainment & Connectivity: Once Standard, Now an Upsell

    In-flight entertainment has also seen a shift from an included service to a revenue-generating opportunity.

    • Many airlines have replaced seatback screens with “bring your own device” streaming, often requiring paid Wi-Fi.
    • Some carriers charge extra for basic headsets or restrict free content in an effort to upsell premium options.
    • Comparing past and present experiences, passengers once had access to a broad selection of movies, music, and games without any additional charges — something now increasingly rare.
    • During my recent flight via Tui, I found the selection of movies to be pretty dire. I had to ask for headphones and they only worked in mono (ie, x 1 ear!).

    Why Is This Happening?

    So why is the experience of flying becoming so much objectively worse by every single measurable metric? Why are airlines offering less and less to customers all the while asking for more and more money?

    Well Airlines argue that rising operational costs and economic pressures have necessitated these changes.

    However, there’s a bit more to the story.

    • Fuel prices and inflation have increased airline expenses, but the shift toward fee-based pricing was already in motion long before these factors intensified.
    • Low-cost carriers like Ryanair and Spirit Airlines pioneered the “unbundling” model, and legacy airlines adopted these strategies to stay competitive.
    • Airline profitability varies. While some major airlines suffered losses in 2020-2021, 2023 saw record revenues. For example, American Airlines reported $52 billion in revenue in 2023 -surpassing its 2019 earnings.

    Basically, cost cutting measures implemented during the lean times have continued even though the crisis has abated.

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    How Can Passengers Adapt?

    While shrinkflation in air travel may seem unavoidable, passengers can take some steps to minimize its impact:

    • Push Back: Don’t pay for seats and don’t pay for entertainment.
    • Choose airlines wisely: Some Airlines like Southwest, still include checked baggage in fares. Yay!
    • Use flight aggregators effectively: Websites like Skyscanner sometimes require extra clicks to reveal baggage policies. Try to find a flight aggregator that shows these costs up front.
    • Leverage travel credit cards: Some offer perks like free checked bags, priority boarding, and lounge access.
    • Bring essentials: Packing snacks and a water bottle helps avoid costly airport food.
    • Entertain Yourself: Bring a laptop or iPad with some films, books and music downloaded. Bring a card game too.
    • Book strategically: Selecting flights carefully can minimize the need to pay extra for seat selection.
    • Game The Seat System: When you are buying your ticket (but before checkout) open multiple different windows on the ‘seat selection’ screen, and make multiple set reservations. These will be ‘held’ for 10 – 20 minutes. Reserve all the seats until you get to the point when the random allocator has no choice but to sit you together. Check out on this one, and close the rest of the windows.

    FAQs About Shrinkflation In Air Travel

    Shrinkflation in air travel has become a growing concern for many backpackers, as airlines cut back on services and hike up prices to cope with rising costs, we need to get crafty. I’ve answered some of the frequently asked questions about Shrinkflation in Air travel.

    Final Thoughts: The Future of Air Travel—Is There Hope?

    Island Castaway Airplane for 2 Costa Rica

    With airlines continually looking for ways to shaft passengers, cut costs and charge more, the future of budget-friendly flying remains uncertain. (God forbid) you are unlucky enough to ever experience the dropping of the oxygen mask, don’t be surprised if you have to put a dime in the slot before it gives you any air.

    However, there is hope that consumer pushback could force some backtracking from airlines and deliver positive changes. Especially as alternative airlines and competition force adjustments.

    Still, for now at least, I personally am taking fewer flights than I used to. And when I do fly, I am trying to travel as lightly as possible, and bringing my own sandwiches.

    What about you? Have you noticed these changes? Do you think air travel is becoming worse value for money? Share your thoughts and top travel hacks in the comments below!

    The view of some mountains and a wing from the window of a Ryanair plane over Europe
    Window seat? Get ready to sell a kidney.
    Image: Nic Hilditch-Short

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    the broke backpacker team at the water temple in bali
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